PHILLIMON MHLANGA
Government has ordered an “urgent” audit into local authorities’ leasing deals amid revelations that dodgy officials have been awarding long-term operating leases to suspected cronies and associates, a scam which has cost local authorities millions of dollars in potential revenue, it has been learnt.
It is believed that top council officials’ associates, including “wives”, are holding 25-year leases while others have 99-year leases. The deals are said to be no longer benefiting local authorities.
The council officials are said to be pocketing thousands of United State dollars as they are breaching their lease agreements by sub-letting the facilities to other tenants for higher rentals in United States dollars. In turn, they short change local authorities in the process by paying paltry monthly lease rentals in Zimbabwe dollars.
Most of them, according to Harare City Council sources, pay less than ZWL$1 000.
Well placed council sources also disclosed this week that some of them still owe the local authorities rental arrears in Zimbabwe dollars spanning over 10 years.
Such a move, Harare Provincial Coordinator, Tafadzwa Muguti told Business Times, could clip the wings on shadowy officials who are suspected of irregularly awarding controversial leases to cronies, raising serious questions about contracting practices at the local authorities.
Muguti pledged to clean up the mess saying the government will now examine the potential improper lease deals in Harare, Chitungwiza and Ruwa.
If these allegations are proven, then all lease contracts would be declared unlawful and will be scrapped as the corrupt officials have been prejudicing the local authorities and government millions of dollars in potential revenue.
In addition to that, Muguti said the local authorities’ officials and the leaseholders face legal action if the audit finds evidence of corruption.
They also face eviction from properties they have been occupying for decades.
“I was shocked by the state of affairs on the estate side. There is massive corruption going on. Now, we have ordered an audit on lease agreements. Some are said to be leasing properties to their wives. They are getting US dollars while the government and council are getting paltry figures in local currency,” Muguti told Business Times.
The investigations follow revelations that the lease scam was widespread in local authorities.
One of them that rocked the government and Harare City Council recently was a dam lease awarded to an individual.
It is understood the individual was awarded a 23-year lease to manage and operate Harava Dam, which supplies raw water to Prince Edward Water Treatment Plant and supplies areas like Chitungwiza, Sunningdale, Mbare and Hatfield among others, to an individual at a cost of ZWL$3 000.
The individual is now using the water for brick moulding. This comes at a time when the local authority is struggling to supply residents with water.
“An entire dam (Harava) leased to an individual, who is making bricks and selling right on the highways,” Muguti said.
