The Sunday Mail
Veronica Gwaze
A combination of ignorance and a ‘rigid’ council licensing system has left many informal traders at the mercy of rogue municipal officials that are demanding bribes as protection fee.
The practice has become pervasive to the extent that it is now being viewed as normal, with informal businesses, especially in high-density areas, being subjected to frequent raids to force them to cough up bribes to operate hassle-free.
Local authorities are losing huge sums as some official structures have created parallel licensing systems.
Undercover
Investigations by The Sunday Mail Society revealed that most district council offices are dissuading traders from officially registering their operations.
Posing as a car wash operator, our team approached the Highfield Municipality offices to enquire about the licensing procedures.
Surprisingly, an unofficial route was quickly suggested by one of the officials that we only identified as Farari Topodzi.
We managed to record the conversations in question.
“Since you are already operating in Glen View, I would suggest you go and see my colleague in that area. You can even call her for details. Going the formal route may take you long. We have easy ways of making your operations smooth and it will save you from trouble with our officials. Just take this note and tell the lady that you are my niece and I referred you, she will assist,” said Topodzi.
We then called the Glen View office and spoke to Engelene Katize.
“Council is not currently licensing any operations. Instead, we are issuing receipts as a temporary measure to guarantee you hassle-free operations. And with the receipt, which costs US$120 or equivalent, no single council official will interfere with your operations,” guaranteed Katize upon inquiry.
They also encourage you to laminate the receipt so that it has “long life”.
Regardless of a business one operates, there is a prescribed blanket “protection fee”, which is not the case when one officially registers their operations.
Licence fees ordinarily depend on the nature of business.
For instance, a fruit and vegetable vendor may not pay the same licence fee as a person operating an eatery.
However, in the current case, officials do not bother to check if the person is operating in a designated area or if the business meets required standards, among other things.
As a result, some eateries that do not have recommended amenities such as ablution facilities and running water are being allowed to continue.
Consequences of not paying the protection fee can be dreadful.
When raided, which is now a frequent occurrence, vendors and other informal traders are being forced to part with at least US$10 to avoid having the tools of trade or wares confiscated by local authorities.
The municipal officials had until recently been demanding US$5.
“It is either a trader is licensed or not and if they are licensed, then they pay their rentals straight at the council offices not patrolling officials,” said Harare City Council acting spokesperson Innocent Ruwende.
“It is illegal for any of our officials to demand payment or bribes from traders and that should be reported.”
Ruwende added that businesses like car wash, gas filling, among others, are not allowed to operate in residential areas because they involve the use of dangerous chemicals.
For a car wash to operate, he said, they need to have a medical facility (recovery room).
“We have designated areas for specific businesses, but most traders shun those spaces and prefer playing cat-and-mouse with authorities.”
But, Ruwende could neither confirm nor deny that their office is currently not issuing licenses.
Bottlenecks
For six years, Tapiwa Manera has been running a tyre-fixing business in Waterfalls. However, his trade is illegal.
His efforts to regularise it two years ago were in vain.
“Council requested that I pay a lump sum of US$120. But before that, I was told that I should engage officials from the Environment Management Agency (EMA) and various other departments, which I did not understand their significance in my operations,” said Manera.
“Besides, that meant more money. I then decided to shelve the plan and settle for the ‘small bribes’.
“If you do not pay, they either chase you away from your spot or simply confiscate your stuff.”
Glen Norah-based Takunda Ndoro (not his real name) was recently left stranded after his generator, vacuum cleaner and high-pressure water gun were confiscated by council officials from his car wash business.
He had to follow up at Highfield Municipal offices where he was made to part with US$25 after lengthy negotiations.
“You were supposed to pay a fine for each of the confiscated items and according to my calculations, this is amounting to over US$80.
“However, since you are so respectful and have pleaded well with us, I will only let you pay for the vacuum cleaner then you see what you do for us in return for the favour,” said Topodzi in a conversation captured on footage by this publication.
The Zimbabwe Anti-Corruption Commission (ZACC) said it was seized with several reports and pleaded for the public’s cooperation to address the rot.
“Members of the public must understand that they have a moral obligation to help us in fighting corruption by refusing and resisting to pay bribes and also reporting to ZACC. We will ensure full anonymity of whistle-blowers in all cases,” ZACC told The Sunday Mail Society.
“We have received some reports. Last year, there was a case involving the Mt Pleasant area. Working together with the victims we set traps to apprehend offenders but no further information was forthcoming after that. There is need for total collaboration if we are to win the war against corruption.”
Rogue officials
Women Affairs, Community, Small and Medium Enterprises Development Minister Dr Sithembiso Nyoni said the public was easily falling to rogue officials due to lack of knowledge.
“Ignorance is costing people. The right thing to do is to approach the company registry offices and register your businesses as SMEs and then engage council for space allocation,” said Minister Nyoni.
Recently, Government set up a chamber of SMEs made up of vendors, tailors, vegetables and food associations, among others, to encourage traders to formalise their businesses.
The chamber is currently setting up platforms for Government and SMEs to dialogue on issues such as licensing and organised operations.
Minister Nyoni said the drive also includes crucial arms in business, namely Standard Association of Zimbabwe, Zimbabwe Revenue Authority (ZIMRA), Procurement Regulatory Authority of Zimbabwe (PRAZ) and retailers’ associations.
“We need to help them register and then produce standard, certified goods and feed into the supply chain.
“On July 6, we also have a conference with SMEs and local authorities to keep each other in check.”
Criminals are also taking advantage of the existing confusion. They sometimes masquerade as council officials as the public rarely demands identification cards.
There are also cases of off-duty officials that allegedly harass informal traders.
Chitungwiza Municipality spokesperson Lovemore Meya said informal traders are regulated in terms of the hawkers and vendors by-laws, which demand that a business should first be registered before being allocated a designated trading site.
“Council being a law-abiding entity encourages traders to acquire licences/permits for their businesses and operate from designated areas.
“Ignorance and negligence has left many traders counting losses and exposed to selfish and corrupt officials,” he said.
Extortionate
Harare Residents Trust executive director Precious Shumba notes municipalities are deliberately charging exorbitant figures for licences.
“This is a way to demotivate traders from regularising their businesses. Council officials thrive in confusion. It is evident that they prefer the existing disorder to maximise on their personal benefits,” he said.
“Local authorities should embrace technology and updated information in real-time.
“Further, those who have paid should be issued with either operating certificates or approved operators access cards that can be authenticated through an electronic system.
“Councillors should also play a part in addressing these issues through their standing committees and subsequently the full council.”
He added that council raids are unnecessary and irrelevant in the 21st century where urban local authorities should create structures that ensure transparency and accountability.
