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Harare businessman Michael van Blerk, who was accused of defrauding Harare City Council (HCC) of $1,5 million in a land deal, recently walked out of court a free man after the latter withdrew charges.
The court heard that City of Harare wrote a letter to the Prosecutor-General withdrawing charges against van Blerk.
The dispute arose from a joint venture company, Sunshine Development (Private) Ltd, which the local authority and Augur Investments, represented by van Blerk signed an MOU as a special purpose vehicle.
The MoU stipulated that Augur Investments was to provide funding for procurement of materials, equipment and working capital constituting 70 percent shareholding, while the City of Harare would provide land constituting 30 percent of shareholding.
The State alleges council processed all the documentation for the project and transferred land to Sunshine Development (Private) Ltd as per agreement.
Van Blerk and his accomplices, who are still at large, had misrepresented to the City of Harare that they had 70 percent capital for the project.
It is alleged van Blerk and his accomplices, unlawfully took title deeds for the land measuring 6 160 hectares transferred by Harare to Sunshine Development and misrepresented to NMB Bank that they had a board resolution to acquire a mortgage bond for $1,5 million to fund the Mbudzi Project.
It is alleged that when van Blerk and his accomplices made this misrepresentation they knew that the title deeds belonged to Sunshine Development (Private) Ltd and had no authority from shareholders to use the deeds as security.
Van Blerk and accomplices failed to service the loan resulting in the land being transferred to NMB, again without the knowledge of City of Harare, thereby prejudicing Harare of $1,5 million and nothing was recovered.
The letter from the city indicated settlement of the case.
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