Harare City Council Scrutinized Over US$4.5 Million Loan Mismanagement
The Harare City Council faces intense scrutiny after revelations of a US$4.5 million loan advanced to Harare Quarry Private Limited without formal agreements.
Questions over legitimacy arise as records indicate the council was not listed as a shareholder, pointing instead to two former employees as shareholders.
Reports by The Herald reveal serious financial irregularities at Harare Quarry, including allegations that ghost workers received US$56,000 in salaries over an 11-month period.
Millions of dollars remain unaccounted for due to missing payment vouchers and supporting documents.
The quarry has reportedly operated in secrecy since 2018, failing to declare its revenues, profits or dividends to the council.
A special audit by Parker Randall Chartered Accountants, covering December 2017 to June 2019, highlighted these discrepancies.
It noted that at the time of the loan disbursement, shareholders listed in the Registrar of Companies filings dated August 10, 2016, were Mrs. Ncube and Mr. Pfukwa, raising serious governance concerns.
The situation was further underscored by The Herald, which reported that a forensic audit, commissioned in June 2021 to address these issues, remains unpublished—fueling speculation about transparency and oversight.
Legal experts have warned that the council risks losing control over subsidiaries, including Harare Quarry and Rufaro Marketing, as reports suggest some companies have been registered under the names of individuals who are no longer affiliated with the local authority.
This alarming situation has sparked widespread calls for improved governance and stricter financial controls to prevent further discrepancies.
