Harare City Council’s top executives plundered at least
$389 000 from the traditional beer levy account which they used to buy personal
vehicles, an audit report has revealed.
According to the report by a tribunal chaired by retired
High Court judge, Justice George Smith which was tasked to look into how senior
management at Town House were running the local authority, funds meant for
water, sanitation and health were diverted and used to buy vehicles.
“The diversion of the funds to the personal accounts for
the personal benefit of a select group of members of executive management was
illegal,” reads part of the report.
“The purchase of vehicles by members of executive
management was also unprocedural in terms of the council’s own policies and
procedures.”
Among those who allegedly benefitted were Prosper Chonzi (
health director), Tendai Kwenda (finance director), R.T. Chinengundu, Cainos
Chingombe (human resources). The directors were suspended following the audit.
Smith’s team said according to law, money from the
traditional beer levy should only be used to “fund the provision of services
that include water and sanitation, health, education, recreation and other
related interventions.”
“The money shall not be part of the general revenue of the
local authority and must only be used for the welfare of the community as
approved by the minister,” the report stated.
Chonzi allegedly received $130 000 from the fund and bought
a second-hand accident-damaged vehicle purportedly for the sum of $110 000.
“He failed to transfer the excess funds received back to
the council bank account. This amounts to misappropriation of council funds,”
the audit report read.
On Kwenda, the report says; “a vehicle worth $70 000 was
assessed as appropriate for his grade of employment, yet mysteriously he opted
to import a Jeep Cherokee from the USA worth $97 500, hence contributing a
total of $27 500 from his personal funds.
“This is despite his full appreciation, at the time, of the
fact that the amount advanced was not a loan and the vehicle purchased belonged
to his employer.
“Secondly, despite his full knowledge that council vehicles
are insured by council, he went on to insure the vehicle using his personal
funds, which funds he demanded back from council.
“This is particularly absurd because the insurance
department falls under his portfolio.
“Thirdly, he did not register the vehicle in the council’s
fixed assets register and has not done so to date.
“His culpability in not entering the asset on that register
may suggest an intention to prejudice council.
“As the custodian of the assets of council, he was aware of
the implications of his actions and did not act in the best interests of
council. The vehicle was registered in his name.
“Chingombe purchased a brand new vehicle from Toyota and
registered it in his name, despite being the proposer of the scheme, which was
devised only to avoid the cumbersome state procurement process, and not to
enrich himself and other executives unjustly.
“The registration of the vehicle in his name was a clear
violation of the spirit in which he received council’s approval of his illegal
recommendations.” Standard
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