Source: The Herald – Breaking news.
Mr Precious Shumba 
Trust Freddy, Herald Correspondent
Harare residents have expressed outrage over the City Council’s proposal to borrow over US$21 million to improve service delivery.
The residents insist that the council must first plug its financial leakages before assuming more debts.
The outrage comes at a time when the city is reportedly losing over US$70 million annually due to the absence of an effective Enterprise Resource Planning (ERP) system.
This also comes at a time when the city has lost track of a US$4.5 million loan advanced to its subsidiary Harare Quarry, amidst reports that the city is still using outdated methods, such as memory sticks, to store financial records. Top city officials are also drawing huge salaries and perks at the expense of funding service delivery and paying municipal workers.
The cash-strapped City published a notice yesterday in the press seeking permission to borrow US$21,299,800 to finance various service delivery initiatives.
The city intends to use the money to, among other capital projects, upgrade three bus termini at a cost of over US$2 million, buying five refuse compactors for US$600 000 and 52 tractors at US$2.6 million, with each tractor costing approximately US$50 000.
Additionally, the council is also seeking to buy vehicles at US$1,3 million, a front-end loader at US$157 500, and a solar-powered borehole at US$8 500.
In an interview, Harare Residents’ Trust director Mr Precious Shumba said: “The City of Harare is in no position to consider borrowing money for any reason.”
“They first have to have a functional, transparent and accountable billing system. Currently, they have failed to plug financial leakages on funds generated by strategic business units and cattle farms and have opaque procurement systems.”
Mr Shumba raised concerns that the US$21 million loan could be misused by city officials for personal gain.
“Where you see the council intending to borrow, it means that they have already lined up the service providers who will give bribes to the council’s technocrats and councillors as inducements to facilitate the illegal procurement deals.
“Given these challenges, the Harare Residents’ Trust objects to the borrowing powers being sought and demands that the council facilitates meetings where these issues are shared with residents and other critical stakeholders.”
With the council’s track record of mismanagement, Mr Shumba said, there was need to address these “glaring financial flaws,” first.
“Despite the bad financial situation at the City of Harare, they awarded senior managers Grade Four pay-grade vehicle loans worth US$85 000 but failed to think of refuse compactors and waste management as a whole.
“Council management and councillors in the responsible committees are both conniving to deceive and loot council funds in the name of service delivery. We reject the borrowing powers being sought. Let the council recover the money paid to a supplier of refuse compactors who delivered single skip trucks instead of the double-skip refuse trucks ordered as per council resolutions. Nothing presently justifies the borrowing powers sought,” said Mr Shumba.
Another concerned resident, Mr Gilbert Nyakudya said: “I have just observed the usual mischief of not mentioning the number of some items to be bought, for example, operational vehicles and the ICT infrastructure upgrade, and there are no specifics.
“Also, the money is coming at a time when the ERP is yet to be implemented, and this means the amount won’t be traced. Due to the above reasons, I humbly reject the borrowing without closing loopholes.”
Another city dweller, Ms Mary Chavhunduka, said the idea would be acceptable if the burden of loan interests were not passed on to ratepayers.
“The council must ensure that its properties generate sufficient revenue to repay the loan, if granted, rather than passing the burden to residents.
“The council has numerous revenue streams at its disposal, including its beerhall properties, which are currently benefiting individuals who are illegally subletting them and collecting substantial rentals.”
Harare Mayor Jacob Mafume justified the decision to borrow, saying that it was the only way to improve service delivery.
“We will have to borrow, as there is no city in the world that has survived on cash alone,” Councillor Mafume said.
“However, we need to ensure that the borrowed funds are ring-fenced and utilised effectively. To avoid leakages, we will ensure that the money goes directly to the suppliers. We are confident that we will be able to utilise the funds efficiently.”
Clr Mafume expressed dissatisfaction with the council’s delay in implementing an effective ERP system.
“I am unhappy with the way my staff is delaying the reinstatement of the ERP system.
“I have raised the issue with the commission (which is probing the city affairs) and the Ministry (of Local Government).”
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