The Sunday Mail
Investigations Editor
THE Harare City Council could have been prejudiced of about US$2 million when it splurged over US$8 million on 10 tractors, 35 single-cab trucks, 14 top-of-the-range vehicles, four ambulances, two containers of computers and laptops at inflated prices without going to tender.
This has been unearthed during investigations into a contentious US$144,4 million loan secured from China National Machinery and Equipment Import and Export Corporation in 2010 to refurbish water and sewage treatment plants.
Some council officials assigned to the project are also being paid additional monthly allowances whose value could not be ascertained.
Information gathered by The Sunday Mail last week showed that the city council’s project team, led by town clerk Mr Tendai Mahachi, bought the vehicles and equipment at inflated prices.
The probe is expected to be finalised this week.
Ironically, the US$144 million project itself is allegedly structured on the basis of inflated costs, according to a consultant engineer who ran the rule on the whole deal.
Mr Peter Morris’s report on the loan says it is possible that the project cost may have been overstated by as much as US$100 million, a charge the city denies.
Ultimately Harare ratepayers in particular and Zimbabwean taxpayers in general will be saddled with repayment of the allegedly inflated loan which has already been used to purchase overpriced cars and equipment.
The deals have seen ratepayers threatening to boycott settling bills as a form of protest.
A five-member special investigations committee probing the dodgy procurement procedures is expected to conclude its probe on Thursday, after which an emergency special full council meeting will be called to debate the report.
Preliminary findings accessed by The Sunday Mail indicate that the project team flouted tender regulations by buying vehicles directly from suppliers not selected through formal tender processes.
Vehicles were bought from local car dealers while computers and laptops were imported from China. They are currently being transported into the country.
In all purchases, investigators have found glaringly inflated figures.
The computers were bought for the computerisation programme while the vehicles — which include Range Rover, Land Rover, Isuzu, VW Amarok and Nissan trucks — were allocated to council officials working on the water project.
Mr Mahachi received a brand new Range Rover; this despite that council bosses got new cars less than a year previously.
The investigating team also found that council bosses — who are already enjoying fat salaries — are getting thousands of dollars monthly for working on the water project.
They also enjoy fuel allocations for both their official cars and the new project vehicles.
It is understood that council bosses have since parked their official cars and are using the projects cars, and they can buy these after five years at book value.
Investigators also have questioned why council officials did not seek councillors’ approval before buying the vehicles.
“Council is to blame for the abuse of the Chinese loans because there are no proper guidelines of how the money was supposed to be used. The decision to buy new cars and equipment was made by the projects team; so the deciders are the beneficiaries,” said a source close to the investigation.
Deputy mayor Clr Thomas Muzuva Musarurwa, Greendale Clr Stewart Musarurwa Mutizwa, accountant Mr Gabriel Chipara, lawyer Mr Tendai Tato, and Eng Richard Massdrop comprise the probe team.
Their recommendation will go to Local Government, Public Works and National Housing Minister Dr Ignatius Chombo.
Dr Chombo has already defended the vehicle purchases, though he has said investigations should continue.
The minister said: “We have heard about the investigations (council probe on alleged abuse of funds for the project) and the cost involved in it, sometimes they (councillors) need to satisfy themselves, but I was advising the deputy mayor that I would have recommended seasoned engineers who understand how projects are done to carry out the investigations.”
Acting town clerk Mrs Josephine Ncube has also fought in council bosses’ corner, saying there was provision for vehicles and equipment for 0,09 percent of the total project value.
In protest, the Harare Residents’ Trust is pushing for a three-month rates boycott to force council to be more accountable in use of funds.
