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HWANGE Local Board (HLB) town secretary Ndumiso Mdlalose has once again been arrested on charges of abusing the local authority’s funds after he allegedly defrauded the council of over $8 million by repeatedly claiming travel and subsistence allowances for a single trip.
Mdlalose (54) of Number 1 Sunset Close in Baobab, Hwange, who is on $200 000 bail for a corruption case he is jointly charged with HLB housing director Ananias Banda after the two were arrested by the Zimbabwe Anti-Corruption Commission in May for allegedly selling an industrial stand worth nearly US$2 million for US$20 000 to a local coal processing company, faces fresh charges criminal abuse of duty as a public officer.
He appeared in court on Monday before Hwange regional magistrate, Mr Mark Dzira who remanded him out of custody to 25 September on $400 000 bail.
The magistrate ordered Mdlalose to reside at his given address, report to police in Hwange once every week on Monday, surrender travel documents and not to interfere with witnesses as part of his bail conditions.
Allegations as presented by prosecutor, Ms Memory Munsaka are that during the period extending from December 2022 to May this year, Mdlalose being the Hwange Local Board’s accounting officer, defrauded the local authority by severally claiming unapproved monies for accommodation and travel expenses.
The court was told that Mdlalose’s duties as Town Secretary included ensuring proper administration of council finances, introducing, implementing and monitoring adequate control systems for council finances and overall control of human and material resources.
“In that Ndumiso Mdlalose unlawfully and intentionally acted by claiming on several occasions a total of $8 227 848 being unapproved travel and subsistence allowances which included $3 279 000 accommodation allowances for his accommodation while on HLB business trips and thereafter further approving that payment be made by Hwange Local Board to Holiday Inn for accommodation expenses amounting to $2 545 000 in respect of the same business trip well knowing that he had already received travel and subsistence allowances,” said the prosecutor.
Investigations are still underway on the allegations.
In the previous pending case, Mdlalose and Banda (51) allegedly connived and sold a 6-hectare industrial stand to Paarlweb Investments Pvt Ltd for US$20 000 against a council resolution of selling the stand for US$1 983 600.
Paarlweb, through its directors, wanted the piece of land to establish a coke oven battery.
The company had initially applied for 20 hectares in May last year.
Council deliberated on the application on July 8, 2022 and resolved to place the issue on hold pending investigations by the Health, Housing and Community Services committee which wanted to see the company’s environmental impact assessment report.
A meeting was then held, where it was resolved to accept the application and to sell the stand at the prevailing cost.
Mdlalose allegedly generated a letter dated August 22 confirming that Paarlweb had purchased the stand and had met all council requirements.
On August 29 Mdlalose allegedly wrote to Paarlweb, which he also copied to Banda, advising them that the Local Board had proposed that they make an initial deposit of US$20 000 and the outstanding amount was to be in the form of council projects for a period of five years, the court was told.
On September 14, Banda instructed the accounts clerk to generate an invoice for payment. Paarlweb then went on to pay US$24 045 on 21 September.
In connivance, Mdlalose and Banda reportedly made their communication through WhatsApp. A report was made to Zacc by some residents and concerned stakeholders, resulting in the anti-corruption body investigating the matter leading to their arrest.
Online Reporter