US$1.5 Million vanishes from Rufaro Marketing

By staff reporter

Harare – Over US$1.5 million has reportedly vanished from the accounts of Rufaro Marketing, a private firm wholly owned by Harare City Council (HCC).

This incident has sparked allegations that high-ranking directors may have embezzled the funds.

The issue came to light during an ongoing Commission of Inquiry into the governance of HCC.

Warren Chiwawa, the chamber secretary of Harare City Council who doubles as Rufaro Marketing’s board chairperson appeared before the Commission to address allegations of corruption within the company.

The investigation revealed that Rufaro Marketing, a subsidiary of Harare City Council, collected over US$1.5 million in revenue since 2022, yet only US$63,000 was remitted to HCC.

Evidence presented to the Commission indicated that two board members, Ngoni Chimbalu and Juma Ulete, had been collecting cash rentals from Rufaro Marketing tenants since 2022 without transferring the funds to HCC.

Thabani Mpofu, the Commission’s Evidence Leader, questioned Chiwawa about the Auditor-General’s report, which had previously highlighted that Rufaro Marketing’s collected funds were not remitted to HCC. The new evidence of alleged theft by board members Ulete and Chimbalu was also discussed.

Despite substantial evidence that Ulete and Chimbalu collected rental payments that were not forwarded to HCC, both remain on the board.

When Mpofu inquired why Ulete and Chimbalu had not been suspended pending the investigation, Chiwawa explained that he lacked the authority to enforce suspensions. He clarified that he could only make recommendations to HCC, which holds the power to suspend board members.

“I did not call for the suspension of Ulete and Chimbalu because the Harare City Council, as the sole shareholder, has the authority to override the board’s decisions

“What we could do is simply make recommendations to the Harare City Council,” said Chiwawa.

The remuneration for ordinary board members at Rufaro Marketing is US$560 per month.

The board chairperson, Warren Chiwawa, earns US$750, while his deputy, Advocate Harrison Nkomo, receives approximately US$700.

According to HCC resolutions, 60 percent of the estimated US$45,000 in monthly rentals should be allocated to social services, 20 percent directed to HCC’s account, and the remaining 20 percent retained by the board for administrative expenses.

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