adminAbel Zhakata Senior Reporter
THE much-awaited report on the Gimboki South Housing Scheme complied by a five-member probe team that was instructed by Government to investigate anomalies at the project in which more than 5 000 home-seekers were duped of millions of dollars is out.
Manicaland Provincial Administrator, Mr Fungai Mbetsa, revealed on Wednesday that he received the report for onward submission to the Minister of Local Government, Public Works and National Housing, Cde Saviour Kasukuwere.
Although he could not divulge contents of the report on grounds that the minister must have sight of it first and recommend appropriate action, sources close to the probe revealed that massive fraud, corruption and willful abuse of funds were exposed by the investigation.
“The report is out and I will present it to the minister who will then give us direction. At the moment I cannot divulge the contents of that report because it is meant for the minister not myself,” said Mr Mbetsa.
Those privy to the month-long investigation said no audit was carried out since 2007 when the scheme began, raising speculation that millions of dollars were misappropriated by those running the show.
“Basically, the findings of the probe were in agreement with a report written by some members of the housing scheme in April this year which necessitated the current investigations. Those who raised the allegations were spot-on for the probe team also unearthed the anomalies, save for a few matters. It is true that millions of dollars were lost at the scheme as some groups were collecting money without remitting it to the consortium to facilitate land development. Cases of double allocations are rampant at the scheme as a result of corrupt tendencies by some leaders of the Mutare Housing Consortium,” said a source who refused to be named.
In a complaint letter dated April 24, 2015 addressed to the then Minister of Local Government, Public Works and National Housing, Dr Ignatius Chombo – a copy of which this paper has in possession – some members of the housing scheme requested for the ministry’s intervention to curb what they termed “massive abuse of office and power, corruption, fraud, misappropriation of public funds, violation of human rights and violation of corporate governance principles” at the housing scheme.
“We are requesting for your intervention into the Mutare Housing Consortium, Gimboki South Housing Project issue. We have issues against the . . . Mutare Housing Consortium Executive Committee on their handling of the project which involves about 5 200 people drawn from seven groups namely Mutare District Union, Mutare Private Companies, ZPCS, ZNA, NRZ, CMED and NHDT.
Alleged issues involving the MHC include massive abuse of office and power, corruption, fraud, misappropriation of public funds, violation of human rights, violation of corporate governance principles and government policies which support housing to the people and other serious criminal matters,” read the complaint letter.
The members complained that nothing tangible has been done to develop the stands since 2007 despite beneficiaries forking out millions of dollars.
“We want to put it to your attention that we as residents of Mutare we have encountered several problems in our quest to own residential stands within the city. In 2007, we were blessed to have the approval of you the Minister to form a housing consortium by the name Mutare Housing Consortium. MHC then entered into a Memorandum of Agreement with the Mutare City Council to develop the piece of land named Gimboki South Housing Project with about 5 410 residential stands.
“A committee was established comprised of seven people each drawn from the seven groups to form the consortium management committee. The project started operating in 2007 with member subscribing money for the development of the stands through their respective groups. Since then the project was characterized by serious misappropriation of public funds, lack of transparency and corruption among many issues to an extent that two consortium committees have been expelled with the latest being that expelled in 2010 leading to the appointment of the current committee by the housing director, Mr Mapurisa, in June 2010 which is led by Mr Mike Duru.”
The members alleged that the Duru-led committee was corrupt.
“Our great concern now rest with the current consortium committee led by Mr Duru on which the Town Clerk, Mr Obert Muzawazi, has since assumed the role of an arbitrator since August 2013. The project today is in serious turmoil and unprecedented misery in the history of land development in the city…in August 2012 the consortium committee fraudulently engaged Dreamoss Investments which falsely proclaimed to be a financer. The company went on to deduct thousands of dollars from beneficiaries, a situation which led to thousands of people being defrauded of their monies for more than two years with no noticeable development taking place at the project . . .the consortium has failed to give financial reports explaining the income and expenditure structure of the project.
The committee has never conducted or produced audited financial statements in its life in office…this has made it difficult for the consortium to account for public monies to the satisfaction of the majority contributors of those funds,” read part of the letter.
They also alleged that the committee was stealing individual stands.
“The consortium has been involved in serious corrupt activities with regard to people’s money and stealing of individual stands. Thousands of people have lost their stands as we speak today. The committee has illegally dispossessed poor people of their stands. There is serious double allocation of stands with bonafide beneficiaries’ stands being sold to undeserving people who have not been part of the project since 2007. The consortium database is in shambles. The database held by individual groups is different to that at the consortium office which is also different to that at the city housing department. We are equally informed that some council officials at the housing department are also involved in these shenanigans with the consortium vice chairperson, Mrs Tsuro. We are also equally aware that some of the consortium committee members have acquired properties in and outside Mutare using people’s money, a fact which needs t be investigated by the serious frauds squad,” read the letter.
They also raised question on the prolonged term of office of the current committee which they said was unconstitutional. They recommended the suspension of the current committee and immediate appointment of an interim committee which will oversee the project and subsequently conduct the audit process.
The members also recommended for a forensic audit of the consortium books by an independent company as well as a stands audit to correct double allocations.
They also suggested that payments by beneficiaries be stopped with immediate effect until the audit process has been finished as well as the cancellation of the Dreamoss contract.
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