Mafume Faces Scrutiny Over Failing City-Owned Businesses

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HARARE – Harare Mayor Jacob Mafume faced tough questions this week as he struggled to account for the poor performance and alleged mismanagement of businesses owned by the City of Harare (CoH).

These ventures, once seen as revenue-generating entities, have reportedly been turned into “personal feeding troughs” by top city officials.

Mafume appeared before a Commission of Inquiry chaired by retired Justice Maphios Cheda, which is investigating the city council’s operations from 2017 to the present. The commission sought answers regarding the collapse of council-owned businesses such as City Parking, Harare Quarry, Rufaro Marketing, and Sunshine Holdings, among others.

Despite owning numerous ventures, the CoH has failed to benefit financially from these entities, with funds reportedly unaccounted for. Rufaro Marketing, which owns a substantial property portfolio second only to the government, has not consistently remitted funds to the municipality.

While the company made payments last year, most of its properties are in a state of neglect. Bars in residential areas have turned into white elephants or been converted into tuckshops by informal traders.

Mafume admitted the situation was dire, telling the commission, “Council is not benefiting from this state of affairs. They are not being run properly. We need an Enterprise Resource Planning (ERP) system to manage the leases and properties owned by the council. Companies like Old Mutual and other real estate firms use similar systems, but there has been a deliberate effort from management to avoid implementing such measures.”

In a startling admission, Mafume revealed that some council-owned properties have “disappeared” from official records.

“You cannot transfer it to where there is equal chaos because if you transfer [without reforms], more properties will disappear. There are properties that are supposed to be managed by CoH that are no longer under council control,” he said.

The commission also heard that certain city buildings have been taken over by so-called “barons,” who now demand rent from shop owners.

Last year, a report by the commission highlighted deep-seated corruption within the municipality, revealing that the council collected just $100 in the first quarter of 2024 from tuckshop owners. This exposed significant revenue leakages, raising concerns about accountability.

Mafume also confirmed that a councillor from the opposition Citizens Coalition for Change (CCC) is leasing a property from Rufaro Marketing.

“I am aware of one councillor linked to Hunters Bar. It was publicised that Councillor Nyakudya was leasing the property,” he said.

The inquiry has intensified calls for reforms within the opposition-controlled local authority. Critics argue that the mismanagement of city-owned businesses highlights systemic corruption and inefficiency, leaving Harare residents to bear the brunt of failing services and neglected infrastructure.

As the commission continues its investigation, the spotlight remains on Mayor Mafume and his administration to provide solutions and restore public trust in the city’s management.