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From George Maponga in Masvingo
Government has instituted investigations into Gutu Rural District Council after it recently torched a storm when it demanded over $300 000 licence fees from a local investor seeking approval to build a private hospital, among other modern facilities, in a rural area on the outskirts of Mpandawana Growth Point.
Construction of the private hospital, a conference centre and a private school in Utsinda communal lands in Gutu Central, was going to benefit thousands of rural villagers in the area.
However, the multi-million dollar investment by Professor Rangarirai Masanganise hung in the balance after Gutu RDC management allegedly demanded $320 000 in levies before it could issue a licence for the project.
The exorbitant levies raised concern that Gutu RDC was stifling investment in the district by charging punitive levies to potential investors.
This prompted Government, through the Ministry of Local Government, Public Works and National Housing, to institute investigations.
Masvingo provincial administrator Mr Felix Chikovo yesterday said they were still waiting for a full report on the levies charged by Gutu RDC on investors.
Mr Chikovo said he had ordered Gutu district administrator Mr Roy Hove to carry out investigations as to how council ended up demanding over $300 000 from Professor Masanganise.
“The DA (Mr Hove) was also not aware that Gutu RDC demanded $300 000 from Professor Masanganise to invest in Utsinda. It appears that councillors were also not aware of how that figure was arrived at. We are waiting for a report from the DA,’’ he said.
“We will only be able to know the course of action to take against officials involved in the saga after we have received a full report and we are still waiting,” he added.
Mr Chikovo said it was wrong for local authorities to punish potential investors by charging exorbitant licence fees.
The investigations into Gutu RDC came after President Mugabe recently expressed displeasure at Gutu RDC officials for demanding $320 000 from Prof Masanganise who wanted to set up modern facilities in a largely rural and underdeveloped area.
During his visit to Gutu to pay his condolences following the death of his uncle, Chief Gutu, Mr Anos Kasirai Masanganise, President Mugabe rapped Gutu RDC officials for stymieing development projects that benefit people by charging unjustifiably punitive levies.
The President ordered that Professor Masanganise be allowed to continue with his project as it would benefit rural people through improved access to modern health facilities and education.
President Mugabe was responding to Acting Chief Gutu, Mr Edmund Masanganise, who had bitterly complained to the Head of State and Government over high levies charged by Gutu RDC on investors.
The acting chief said the multi-million dollar investment at Utsinda by Prof Masanganise was under threat because of the $320 000 levy demanded by council.
Online Reporter