Council looting scandal jolts ZACC

MOSES MATENGA

Council has roped in anti-corruption hawks to probe the mysterious and suspicious opaque deals at the council-owned Rufaro Marketing where millions of dollars have been looted by a cartel suspected to include officials and councillors at Town House.

This comes as the Audit Committee of council confirmed to Business Times the massive looting and failure to account for finances raised by Rufaro Marketing as exposed in an investigation with the country’s leading financial newspaper in conjunction with the Information for Development Trust (IDT), a non-profit organisation helping journalists produce investigative stories on corruption and bad governance.

The investigation exposed a well-knitted cartel that involve dealers working to identify potential tenants at Rufaro Marketing outlets across the city and linking them with officials at the company’s Remembrance Building offices in Mbare.

Following the exposé, Business Times was inundated with several calls from councillors, council officials and other stakeholders who provided on and off-record information on the massive looting at Town House.

The Zimbabwe Anti-Corruption Commission officials also confirmed the investigation but refused to comment further on the matter.

Council Audit Committee Chairman, councillor Blessing Duma, said it remains a mystery why the looting has been left unchecked adding that they have since made a report ZACC.

“We are also waiting for investigation reports that were conducted by ZACC under officers (names withheld) regarding Rufaro Marketing,” Duma said.

He said there was “overwhelming evidence” of misappropriation of funds at Rufaro Marketing.

Duma added a council resolution to have money realised from Rufaro Marketing rehabilitate stadia has not been adhered to, raising further suspicion.

“The issue of remittances is very controversial within Rufaro Marketing,” Duma said.

“Last year, we agreed that the money coming from Rufaro Marketing, 80% percent should go towards refurbishment of Rufaro Stadium in accordance with the law,” he added.

He added that the agreement also meant Rufaro Marketing remittances should be allocated for social services, clinics, and schools.

“Twenty-percent of the remittances was supposed to come to council. Up to now, we are still waiting for the audit to clarify what has happened to the money that was supposed to go to Rufaro Stadium. Even if the renovations were conducted properly, we were supposed to receive that audit report and we are still waiting for it,” he said.

His statements come amid fear the Rufaro Stadium refurbishment project was personalised by Mayor Jacob Mafume and it was not immediately clear how much was used.

Mafume confirmed to Business Times that only an audit would ascertain the actual amount used to rehabilitate the stadium currently unsuitable to host international football matches.

The Zimbabwe national soccer team has been forced to play international games outside the country as a result.

Duma added: “The issue also is we are waiting for the audit reports pertaining the whereabouts of the 20% percent allocation that was supposed to come to the council in terms of remittances. The unclear aspect is that city parking has started to contribute to refurbishments, so the question remains: where is the money? They are no longer serving or refurbishing anything at Rufaro Stadium.”

“Regarding the Rufaro marketing audit, our council departments have been conducting reviews in every department. Currently, we are focused on city parking and Rufaro Marketing, and we are awaiting a comprehensive report from the business manager of the City of Harare, whom we tasked with managing the business entities.”

Duma said officials were benefitting from the Rufaro Marketing rot.

“We call upon government institutions to support us as we seek to restore order regarding Rufaro Marketing, as it concerns citizens and involves significant sums of money.

“You may hear that Rufaro Marketing is not operational; however, it is functioning full-time and should serve its purpose in providing essential services to schools, sporting facilities, and clinics.”

Council sources told Business Times this week that a lot of reports have been sent to ZACC on council entities including Rufaro Marketing.

Following publication of the story, Mafume told Business Times that Rufaro Marketing was giving him a headache and that the metropolis will soon act.

“What we need to do is that all chairpersons of the business entities that are related to council will sign performance-based contracts with the Mayor which will measure against and will make sure they comply with the contracts that are required and that they will be able to move in the direction that we require and we make commitments to each other so that they are not abused and left directionless and consequently the city loses revenue.”

Harare lost millions of dollars that could have rehabilitated social amenities including stadia to a network of corrupt officials and politically connected cartels that have taken over its cash-cow, Rufaro Marketing, investigations show.

Rufaro Marketing, a once-lucrative venture that financed crucial city projects, is a stark example of the rampant plunder, neglect, and corruption that has plagued Harare. Millions of dollars generated by this entity have disappeared, leaving a trail of mismanagement and unaccounted funds.

According to officials, Rufaro Marketing has been generating between $35,000 and $45,000 per month since 2022, totalling approximately $500,000 annually. However, there is no documentation to substantiate how these funds have been utilized.

Several critical documents, it emerged, have gone missing over the years, raising suspicion officials and cartels sold some of the Rufaro Marketing property and benefited from the proceeds.

Investigations show that a cartel comprising both ruling Zanu PF party aligned activists, opposition senior officials, councillors and council officials are involved in the illegal letting and subletting of Rufaro Marketing facilities across the city.

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