The revelations follow an audit by a private firm covering the period 1 December 2017 to 30 June 2019.
“City of Harare was not listed as a Shareholder of Harare Quarry (Pvt) Ltd.
“The company was owned by former senior officials as per the Memorandum of Association dated 10 August 2016”.
The shocking revelation is part of other strange discoveries from the audit.
Though the company was advanced a US$4.5 million loan by council, there is no written agreement.
“There was no signed agreement for the loan amount of US$4,5 million advanced by City of Harare to Harare Quarry.
Loans between separately registered entities have to be based on signed loan agreements which state terms and conditions that include interest rate, repayment terms and repayment period.
Furthermore, there are no vouchers showing how the money was spent.
“There (also) were no payment vouchers for all payments amounting to US$4,566 407.61.
This has exposed, “the Company to financial losses arising from unauthorized payments made for non-business issues,” it said.
Cases of corruption have been rampant at council with many of its managers already arrested.
Some critics have cited corruption as one of the main problems at council in its failure to deliver services.
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