NBS loses 333 housing stands

Tawanda Musarurwa Property Reporter
The National Building Society (NBS) has lost 333 stands in St Martins (Hatfield) after the Harare City Council moved to cancel an earlier agreement with the financial services provider.

Last year, NBS and council agreed to a partnership that would result in the former getting access to 333 unserviced residential stands in St Martins.

However, NBS no longer wants a partnership with the council, but to acquire the stands.

“A memorandum of Agreement for the partnership was drafted and sent to parties for comments. However, the National Building Society was constantly shifting goalposts in comments.

“Instead of opting for a partnership as was expressed in their initial letter of intent, the National Building Society was now pushing for outright purchase of the stands, a position which was contrary to the council resolution on the intended partnership,” reads part of recent council minutes.

“In other instances where the National Building Society was agreeing to the partnership model, their demands were stringent and could result in the stripping off of the beneficiaries.”

Cancellation of the NBS deal means that the 333 stands will be distributed in terms of standard council procedures.

“The developments left council with no other option except to settle for the rescission of the resolution to enter into the proposed partnership and the subsequent allocation of the same unserviced residential stands under the prevailing policy on housing pay scheme model,” reads the minutes.

Council has proposed to open a new bank account to hold the beneficiaries’ payments.

“In order to curtail the misappropriation of funds collected from members, the city would open a bank account in the name of the Housing Pay Scheme, which would be managed jointly by the director of housing and community services and the finance director. Payments would be made through bank transfers to service providers to maintain a paper trail.”

The NBS was established in November 2014 in terms of the Companies Act (Chapter 24:03) and commenced operations in April 2016. The building society is a wholly-owned subsidiary of the National Social Security Authority (NSSA).