Online Reporter
Martin Kadzere
THE Infrastructure and Development Bank of Zimbabwe (IDBZ) has launched a probe against its former senior manager Mr Suckson Muswe over allegations that he inflated costs of a newly constructed student accommodation facility in Bulawayo, allegedly siphoning a significant amount in project funds.
Sources close to the matter allege that Muswe, formerly known as Makwasha, a key figure in the project’s development, used his “influental position in procurement processes” to significantly inflate the costs of materials and services during its construction.
The project was constructed to the /tune of about US$17,5 million.
The extent of the potential financial loss is believed to be “substantial”, and the illicit proceeds were allegedly used by Muswe to acquire a portfolio of dozens of properties in and outside the country, sources have said.
Ongoing investigations aim to determine the full extent of the prejudice.
Preliminary findings suggest that Muswe may have colluded with subcontractors to submit inflated invoices for payment from which he then benefitted.
When approached for comment, IDBZ chief communications officer Mrs Priscillah Zvobgo confirmed the matter.
However, she said the bank was not yet in a position to provide further details as the matter remains under investigation.
“Due to an ongoing investigation, the bank is unable to release any additional information at this time,” said Mrs Zvobgo.
The student facility was commissioned by President Mnangagwa late last year.
The ongoing probe is part of the IDBZ’s efforts to ensure corporate governance and financial integrity.
Criminal charges have since been filed against Muswe.
The IDBZ operates with a core mandate to finance and facilitate the development of critical infrastructure projects across Zimbabwe, including housing, energy and transportation.
The bank, which is a key player in the country’s national development strategy, seeks to partner with both public and private entities to bring these projects to fruition.
To develop and deliver the Bulawayo student accommodation facility, the IDBZ first purchased the land from a private owner who already had the designs but could not raise the money for implementation.
To mobilise funding for the project, the bank then created a SPV called Zimcampus Properties Private Limited to implement, own and operate the complex.
As a deliberate strategy, anchored on playing a catalytic role and enabling IDBZ to work on several similar projects across the country, the IDBZ deliberately diluted its shareholding to a minimum.
Thus, at the completion of Bulawayo facility, the respective shareholding of the three private investors and the IDBZ stands as follows: IDBZ, 7,67 percent; Motor Industry Pension Fund, 19,44 percent; Old Mutual Life Assurance Company Zimbabwe Limited, 49,37 percent; and Zimnat, 23,52 percent.
Through Zimcampus, the IDBZ secured funding commitment from Old Mutual, Zimnat and Motor Industry Pension Fund.
There are also number of nominees invested through Old Mutual and Zimnat.
Among them was the Public Service Commission Pension Fund, which contributed about US1,8 million by the time the project was completed.
The Bulawayo student facility, a project intended to help address the country’s tertiary student housing shortage.
Online Reporter