US$144m Chinese debt haunts Zim

KUDAKWASHE CHIBVURI

Residents have been forced through the Water Levy to repay the US$144mn China Exim Bank loan received by the City of Harare to rehabilitate Morton Jaffray and address the water crisis but was recklessly allocated to buy luxurious vehicles for top council officials.

Grappled with a severe water crisis that led to a Cholera outbreak in 2008, Harare acquired US$144mn from China meant to rehabilitate the nearly obsolete Morton Jaffray Water Works near Norton.

Morton Jaffray was constructed in 1957 for a lesser population and was not in a position to serve over two million residents in the Greater Harare hence the need for resources.

However, upon acquiring the money, officials at Town House inflated prices of equipment while they also purchased vehicles ranging from Amarok VW, Toyota Land Cruisers, Mazda BT50 among others for top officials.

At the time, there was an outcry over why officials were purchasing vehicles not remotely connected to the Morton Jaffray rehabilitation agenda.

Harare recently introduced a water levy into the 2025 budget much to the anger of residents who argue cannot be held responsible for council corruption and extravagance.

Mayor Jacob Mafume said of the levy: “In our recent budget, we introduced the water levy along with levies for ambulance services and streetlights. The origins of the water levy stem from a Chinese loan that was originally $144m.”

“However, the actual disbursement was approximately $72m, with the contractor charging an additional $21m, leaving us with a total debt of around $98m,” he told Business Times.

“We have no alternative but to implement this levy to manage our debts effectively,” he said.

Harare has gone for over two decades without potable water and all deals to bring the crisis to an end have been either abused or ignored.

Reuben Akili, Director of the Combined Harare Residents Association (CHRA) criticized the council’s handling of the Chinese loan and the new levy.

 “The levy was introduced without proper consultation,” he said.

“We were led to believe that the Chinese loan amounted to US$144m yet only about US$72m was actually received. Now we hear that over US$90mn was reportedly used without clear accountability.”

Akili called for a comprehensive audit on how the loan was utilised.

“If the local authority were sincere, they would conduct an audit to determine how the funds were spent and how we can move forward,” he said.

Residents also accused the Council of a long-standing history of corruption, resulting in a significant erosion of trust in its dealings over the years.

“We cannot continue to burden residents with inefficiencies stemming from poor financial management within the local authority. That is unacceptable.”