The Sunday Mail
THE scandal ridden Harare City Council has been embroiled in a fresh scam involving about US$2 million after the local authority flouted tender regulations while money was paid for goods which were never delivered.
According to a council internal audit dated February 23, 2011, council made questionable payments to suppliers some of which never fulfilled their side of the bargain.
The audit has now prompted an active investigation by Government authorities who are seeking to cleanse the local authority of rampant corruption rocking Town House.
Internal auditors unearthed that the water department buying section failed to comply with council’s resolution adopted from procurement board meeting item number 12 dated July 27 2009 by choosing a third choice supplier – C.E.M Zimbabwe – which was more expensive instead of the first choice supplier – Aluminium Chemicals SA to provide 2 200 tonnes of liquid aluminium sulphate.
“The buying section assertion was that they procured from the alternative supplier because the latter (Aluminium Chemicals SA) demanded cash upfront. This could not have been the valid reason as the buying office preferred supplier just the same, was paid cash upfront. Payment for order number 449 was done on October 1, 2009 but delivery was effected on October 2, 2009 while order number 605, payment was made on November 11, 2009 and delivery was only done on November 23, 2009.
“Furthermore the sidelined supplier submission to audit is that they were never approached. It was also noted that advance payment was made without council authority in contravention of council policy.
“Due to price differentials, council paid an additional US$826 474.”
Auditors noted that the system of shifting from the first to second or third choice supplier was not transparent and did not leave an audit trail.
It was then recommended that disciplinary action be taken against responsible officials.
“The department procurement committee should be involved whenever alternative suppliers are sought, i.e, consideration of second or third suppliers in the event of having problems with the first choice supplier,” recommended the auditors.
Council also paid US$23 369.88 to Morcross Trading for the supply of white metal bearings that were not delivered to Highfield stores. The non-delivery of the goods was confirmed to the auditors by the buyer.
The auditors also recommended that council recover its money from Morcross Trading and take disciplinary action against council employees.
“Audit investigations revealed that some materials were bought using requisitions which were not authorised. The materials that include bulk fuel were purchased for US$3 781 using such requisitions.
“Audit discovered that some purchases were done without purchase orders, this is in violation of part v of the financial regulations section 24 (a) as amended in August 1987 which stipulates that “save with the consent of the city treasurer goods or materials shall be purchased except on a requisition. Harare water paid US$2 784.43.
“Two items were supplied by Morcross Trading during the month of February 2010 were substandard. These are 20 * copper flexible couplings delivered to Morton Jeffrey which were rejected by the user and were sent to Highfield Store where there were finally sent back to the company. There was no credit note or evidence to the effect that the goods were replaced,” reads part of the audit.
Auditors also raised a red flag over US$1 150 which was paid to a Mr S Mudarikwa on April 12, 2010, without supporting documentation to support the service rendered.
Council spokesman Mr Michael Chideme was not available for comment yesterday as his mobile phones were not reachable.
