Harare Mayor Councillor Jacob Mafume has reported that the city has lost over US$250 million in the past six years, attributing this staggering figure to the lack of an effective Enterprise Resource Planning (ERP) system.
He alleged city
executives had deliberately obstructed its implementation to facilitate the
looting of municipal funds.
Clr Mafume’s
made the claims yesterday during his appearance before a Commission led by
Retired High Court judge, Justice Maphios Cheda, which is investigating Harare
City Council’s operations since 2017.
He stated that
the absence of an ERP system has resulted in a potential loss of US$200
million, as highlighted in the 2020 Auditor General’s report, suggesting that
actual losses could be 25 percent higher than previously estimated.
An ERP system
is crucial for managing daily business activities, including accounting,
procurement, project management, and compliance.
Clr Mafume
expressed frustration over the reluctance of the city council’s top executives
and procurement department to revert to the previous ERP system implementer,
Quill Associates.
He estimated
that losses could reach US$10 million per year, totalling US$50 million over
five years, in addition to the already reported US$200 million loss.
“My evidence is
anecdotal because it frightens me that from 2019, for one reason or the other,
management and procurement have failed. And I am beginning to think it’s
deliberate that they have failed to procure an ERP.
“And during the
five years, the city has been bleeding. I am at the haemorrhage.”
When asked if
he and the councillors allowed this situation to persist, Clr Mafume defended
himself.
“I have tried
everything to get an ERP installed at council. I end up being the one accused
of interference, but I have tried everything humanly possible to get an ERP at
council. We can’t function without an ERP.”
He noted that
many councillors lack an understanding of how an ERP system works, making them
easy targets for executives who falsely claim the city can operate without one.
Clr Mafume
criticised the executives for ignoring Government recommendations to implement
an ERP system.
“Now, that is
the deliberate act of our procurement department and management. They don’t
want an ERP in place. Of all the people in any organisation, our executives are
in what I call a management paradise.
“No audits for
five years. They will find a reason from pillar to post to not implement. We
were given an order to implement this recommendation by the Ministry last year,
about three months ago, it still has not been done. They are finding any and
every reason. Now, the reason is me.”
The absence of
an ERP has led to a dysfunctional billing system, characterised by double
billing and lost records, leaving residents facing a myriad of issues.
The city
council abandoned its high-end ERP system in March 2019, exacerbating the
problems faced by both the administration and the community.
Meanwhile, the
commission has denied claims circulating on social media that it apologised to
Clr Mafume, over allegations of receiving a US$200 000 kickback from Quill
Associates of South Africa to secure a tender.
Speaking at
yesterday’s hearings, commission chairperson retired Justice Cheda issued a
strong warning to members of the media, urging them to refrain from spreading
false information about the ongoing inquiry into the affairs of the
municipality.
We would like
to put the record straight that this commission has not directly or indirectly
made any apology to the mayor and to any other witness who has given evidence
towards him.
“The correct
position is that the mayor is still giving evidence. The commission will not
tolerate anyone who is trying to directly or indirectly peddle falsehoods,
which are calculated to intimidate, threaten or influence persons who are
charged with investigating this matter. “
Justice Cheda
also warned the media that they risk litigation for spreading information meant
to derail the ongoing probe. Herald




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