Cartels loot millions from Harare quarry

KUDAKWASHE CHIBVURI

An investigation by the Commission of Inquiry has exposed widespread financial misconduct at the Harare Quarry, revealing that two companies operating under Harare Quarry are funnelling substantial sums of money into ghost accounts linked to the  City of Harare and the quarry itself, Business Times can report.

The Harare Quarry, tasked with producing quarry products for the City of Harare, was also expected to generate revenue for the council.

However, recent reports suggest the council has not received any funds from these business entities in quite some time.

The Commission of Inquiry, appointed by President Emmerson Mnangagwa to investigate these financial discrepancies, has uncovered that cartels and officials have exploited the council’s business entities to misappropriate ratepayers’ funds by setting up fake accounts.

During the inquiry, the committee chair overseeing business entities described Harare Quarry’s as a “den of thieves.”

Ward 24 councilor  and chair of the Business Development Committee, Lovemore Makuwerere,  testified that over $4.5m in loan facilities given to the company remains unaccounted for.

This statement was made during the ongoing Commission of Inquiry, which has been examining the affairs of the City of Harare since 2017.

Newly presented evidence revealed that Instant Tar Zimbabwe, led by CEO Farai Matsika and Finance Director Bright Magura, has been operating as a ghost company.

Following a 2019  joint venture to produce  tar using the Asiphat plant, Instant Tar allegedly paid US$100,000 in local and foreign currency to Harare Quarry .

However,  no funds have been remitted to the City of Harare.

Evidence leader Thabani Mpofu  expressed concern that  Town Clerk Engineer Hosiah Chisango and other council officials failed to mention this partnership, indicating potential corruption among senior officials.

“I am shocked that when the Town Clerk, Acting Chamber Secretary, and some council officials appeared before this commission, they did not mention your company,” Mpofu said.

 “This shows that you have been involved in criminal activities and suggests that you have been looting money.”

Matsika and Magura expressed disbelief, stating that their last meeting regarding the joint venture renewal took place only  three months ago with Mayor Jacob Mafume and Engineer Chisango regarding the joint venture renewal was just three months ago.

“We were told from the very beginning that we are well known to the council,” they remarked.

Further evidence has surfaced regarding Trucking Construction, another company identified as a gost entity.

Operations Manager Tendai Karima testified that the company has made payments to certain officials.

Following this testimony, the Commission of Inquiry has ordered a criminal investigation into both Harare Quarry and Trucking Construction.

The inquiry uncovered  that Trucking Construction has been operating without proper authorization, paying rental leases to a ghost account and neglecting to pay rates, including water and electricity charges. Situated on the same premises as Harare Quarry, the company has been accused of using public land with the facilitation of corrupt officials.

Thabani Mpofu has called for a criminal investigation, citing Trucking Construction ‘s contempt and misleading testimony as evidence of grand theft of public resources.

 “I request a criminal investigation into Harare Quarry, as your evidence suggests serious theft of ratepayers’ money,” Mpofu said.

“You have shown contempt for the inquiry and lack sufficient evidence.”

The Business Times also reached out to Harare Mayor Councillor Jacob Mafume for comment on the allegations.

He stated that it is the Commission’s duty to investigate these matters.

“I won’t comment much because Harare Quarry has been a problem, but that’s the duty of the commission. We are waiting to hear about the findings,” Mafume said.