Chinhoyi council in price war with stand owners

payments from the latter for the stands bought during the Zimbabwe dollar era.
The council says what the stand owners paid for initially was not the final price.

This means the beneficiaries of Rujeko and Ruvimbo housing schemes risk having their stands repossessed.
However, the stand owners argue that they had already paid what was due to council in full during the Zimbabwe dollar era.

“I paid Z$38 million dollars in 2008 and I have the receipts to prove it. I am now surprised to receive a letter from council putting the price of the stand at around US$2 000.
“The money we paid was quiet substantial and we were told that it covered the cost of servicing the stands,” said one beneficiary who did not want to be named.

In its letter of demand council said they entered into temporary agreements with owners on the selling price.
“Pursuant to the temporary agreement you entered with council on the above stand, we wish to advise that council at its ordinary meeting for January 2011 resolved to fix the final stand price for Rujeko scheme,” reads part of the letter.

It further said they were supposed to pay a signing on fee of US$300 and then pay the remainder in 24 months, which will accrue interest making it imperative for them to “clear their balance to avoid interest charges”.
The stand owners have been given 30 days beginning May 18 to make arrangement with council or their failure would be taken to mean that they were no longer interested.

In an interview yesterday, housing director Mr Timothy Maregere said the demands were justified, as they would meet the cost of servicing the stands.
“We could not fix a price of the stands at the time because of the uncertainty caused by an unstable currency but it was clear to them that it was a temporary agreement and they had to meet the cost of servicing the stands because as a council we could not,” he said.

However, the owners said they were made to believe that what they paid then was enough for them to get the stands adding that they felt cheated by council.
“This is daylight robbery. They used our money for other things and now want us to pay more so that they can do what they were supposed to do in the first place,” said another owner.