Johnson Progress

The Harare City Council is allegedly losing nearly US$200,000 per day due to the delayed implementation of a modern Enterprise Resource Planning (ERP) system.

According to suspended Town Clerk Engineer Hosiah Chisango, the city could be losing over US$70 million annually, translating to around US$5 million per month.

The city council has been operating without a modern ERP financial system since 2019, after a contractual dispute with the supplier, Quill Associates.

Despite warnings that the city’s finances would be severely compromised without an ERP system, Harare has continued to use a manual system.

There are allegations that top executives are deliberately blocking the implementation of the ERP system to embezzle remaining funds ahead of the commission’s findings, which they fear may lead to imprisonment.

Councillors have accused the city’s executive of dishonesty and pointed out the irony that officials had no issue procuring luxury vehicles worth US$500,000.

PRAZ had given the city council the green light for direct procurement in October last year, but the council only submitted its first request in June this year, eight months later.

PRAZ objected, citing a significant price discrepancy, and asked the city to confirm the current proposal and explain the price escalation.

Harare Mayor Jacob Mafume blamed the city’s procurement department for the mess, saying they were protecting certain managers.

The city’s acting Town Clerk, Engineer Phakamile Mabhena-Moyo, attributed the delay to prolonged negotiations over price, saying all due process was followed.

The implementation of the ERP system is crucial for the city’s financial management, and the delay has resulted in significant losses.

The city council’s inability to account for US$200 million since 2020 has raised concerns about corruption and mismanagement.