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OpenHarare Loses US$10 Million Annually Due To Leakages, Says Mayor
Harare City Mayor Jacob Mafume testified before the Commission of Inquiry into governance issues at Harare City Council, revealing that some councillors and council executives are conspiring to block the purchase of an Enterprise Resource Planning (ERP) system.
An ERP system is software designed to manage and integrate the core business processes of an organisation. These processes include finance, human resources, supply chain, manufacturing, services, procurement, and others.
The City of Harare has been operating without an ERP system for the past six years. ERP systems provide a centralised platform where data from various departments can be accessed and shared, allowing for improved coordination, efficiency, and decision-making.
During his appearance before the Commission, Mafume said the absence of an ERP system has led to widespread theft within the council. Said Mafume:
I cannot provide exact figures because management has ensured that no audits have been conducted at the council since 2019.
However, we have anecdotal evidence. Millions are paid out in duplicate payments, and some ratepayers’ fees are being waived.
We estimate losses of around US$10 million per year. The City Council has been haemorrhaging funds.
Harare City Council has not been able to audit its accounts for over five years, raising serious concerns about corporate governance at Town House.
Mafume further revealed that top officials at the council have formed a corruption cartel, profiting from the ongoing disarray. He claimed:
The Harare City Council Executive has obstructed my efforts to implement a functional ERP system.
I have made every effort to get the ERP system installed. Instead, I’ve been accused of interference.
But I’ve done everything humanly possible to make it happen. We cannot function properly without an ERP system.
This is a deliberate act by our procurement department and management. They do not want the ERP system implemented.
This story was contributed by Munashe Chokodza
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