Land director in dock over $800m scam

Trust Freddy Herald Correspondent

A director in the Ministry of Local Government and Public Works, Mlindeli Sayi, recently appeared in court facing allegations of corruptly authorising the sale of 50 housing stands in northern Harare, and later authorising a trivial payment for the stands.

The illegal transaction prejudiced the State of nearly $800 million.

He appeared at the Harare Magistrates Court recently facing charges of criminal abuse of office and was released on $150 000 bail pending trial.

Sayi had been arrested by the Zimbabwe Anti-Corruption Commission (ZACC) for allegedly authorising the sale of the 50 stands, which had been set aside as collateral in the event of beneficiaries defaulting on payment of their development fees.

The court heard that on June 7, 2007, the then Ministry of Local Government, Public Works and Urban Development, Sally Mugabe Housing Cooperative and a property developer, entered into a tripartite partnership agreement for the development of

154 residential stands in Carrick Creagh.

Clause 2.3 of the 2007 agreement provided that the Ministry of Local Government would give the developer 50 stands as security in case the beneficiaries defaulted on payment to the developer.

Clause 3.3 gave the developer a mandate to provide on-site infrastructure, roads, storm water drainage, water supply and reticulation, electricity and provision of septic tanks to safely dispose of sewage.

According to the 2009 land valuation for Carrick Creagh, the land’s intrinsic value for the 50 stands allocated to the property developer as collateral was US$1 193 000.

Investigations established that despite the fact that some beneficiaries had fully paid the development fees, Sayi allegedly corruptly authorised the property developer to sell the 50 stands set aside as collateral.

It was established that in October 2022, and after ZACC had opened investigations into the sale of the stands following inquiries with the Ministry of Local Government in relation to their accountability, Sayi allegedly asked property developers to pay the intrinsic value of the land.

As at December 13, 2022, the land was valued at US$1 193 000 and the official exchange rate then was US$1: $661.

Investigations established that the stands should have been sold for $789 241 676,50, but instead, only $1 193 000 was paid, causing an actual prejudice to the State of $788 048 676,50.

It is the State’s case that Sayi acted contrary to his duties as the acting director of State land by corruptly instructing the property developers to pay $1 193 000 as the intrinsic land value for the 50 stands instead of $788 million that was due to the Government.

Sayi’s duties, among others, included ensuring proper disposal of State land, processing requests for land across the borders and validating all department documents, and it is said the accused had no lawful right to act in the manner he did.

 

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