Impact and Cost of Corruption on Service Delivery

1. CIFAL LOCAL GOVERNANCE IN 21ST CENTURY- FRAUD CORRUPTION & RISK MANAGEMENT Impact and Cost of Corruption on Service Delivery Cllr. Action Nyamukondiwa Kadoma City Council Zimbabwe

2. Kadoma City Background • City in Mash West Province • Seventeen elected Councillors • Population of City – 84 000 • Service Provided:- • Housing and Community Services • Waste Management • Water and Sewer • Town Planning and Roads • Public Health

3. Working Definition of Corruption in Zimbabwe • Misuse of public office for private gain (money etc) • Applies to policy makers- councillors • Applies to council officials • Criminal abuse of office • Failure to follow procedure with no need to prove exchange of favours

4. Types of Corruption- in Zim Local Authorities • Bribery - Offering of something often money but can be goods or services to gain an unfair advantage.. • Extortion -Threatening or inflicting harm to a person, their reputation, or their property in order to unjustly obtain money, actions, services, or other goods • Embezzlement - Illegal taking or appropriation of money or property that has been entrusted to a person but is actually owned by another. • Nepotism- Practice to favour a group or person who is a relative when giving promotions, jobs, raises, and other benefits to employees. • Patronage systems- Consist of granting favours, contracts, or appointments to positions by public officials in return for political support.

5. Kadoma City Cases Study • Have encountered corruption in city service delivery • Housing Stands allocation • Commercial Stands allocation • Sewerage Unblocking • Parking and Market fees • Medical Sundries

6. Bribery • Sewer clearing gangs demand money to expedite sewer clearance • Ask clients to pay them directly instead of council • Rampant theft of sewer rods for private jobs • Potential lose of income= $500-$1000 • Opportunity cost- disease outbreaks

7. Extortion • High competition for weekend flea market stalls • Security and market assistants demand money from clients so as to be allocated trading space • Some traders forced to pay using merchandise • Some markets allocated in exchange for sex • Potential lose per month- $2000 per month

8. Embezzlement • Problem common among officials • Top official sold commercial stands • Country was still using Zim dollar • Separate secret receipt used to sell stands in US$ • Used his own receipts books • Converted money to own use • Total prejudice to council- US$40 000

9. Nepotism Zim Financial Gazette -Friday, 08 June 2012 08:52 • GWERU — Council has been operating without a substantive chamber secretary for a year now after RM who held the post in a substantive capacity was dismissed in May last year over allegations of nepotism. • A similar situation prevails in Kwekwe where MM, an auditor, is the acting city treasurer following the dismissal of AZ in August last year over corruption allegations. • Both positions have not been filled after the intervention of Local Government Minister, Ignatius Chombo who dispatched investigators to look into circumstances surrounding RM and AZ’s dismissal.

10. Patronage System • Ward based disbursement of HIV/AIDS mitigation funds to wards- 2006 • Funds allocated on political lines and abused • Issue reported to police but the councillors stopped prosecution and paid back the money- US$10 000 • General workers positions filled by those loyal to ruling party • Advent of new party in council workforce antagonised

11. Corruption maybe there but we need to face it head on…….

12. Thank You