Correspondent|A Harare man who allegedly duped the City of Harare of $1,5 million after an agreement for the development of Hopley Commercial area has been dragged before the Harare magistrates court on fraud allegations.
Michael John Van Blerk (59), appeared before Harare magistrate Rumbidzai Mugwagwa and he was denied bail and he was remanded to December 4 in custody.
Prosecuting Sebastian Mutizirwa alleged that on June 22 2007, City of Harare and one Augur Investments private limited entered into an Memorandum of Understanding (MOU).
The agreement was for the development of Hopley Commercial area (Mbudzi project), provision and development of middle housing and construction of a hotel at Mabelreign golf course area and Mukuvisi Phase 1.
In terms of the MOU the parties formed a joint venture company called Sunshine Development Private Limited as the special purpose vehicle company and Van Blerk was the director.
The MOU stipulated that Augur Investments was supposed to provide funding for procuring materials, equipment and for working capital purposes constituting 70% shareholding.
On the other hand, City Of Harare would provide land at a cost for the project constituting 30% shareholding.
Thereafter, City Of Harare processed all the documentation for the project and transferred land property to Sunshine Development as per the shareholders agreement.
Instead of providing funding Van Blerk and his accomplices from the Sunshine Development who are yet to be accounted for, knowing very well that they could not fund 70% capital for the project they misrepresented to City Of Harare that they could.
Van Blerk in connivance with his accomplices took the title deeds in respect of a piece of land that measures 6, 1160 hectares, being the land transferred by City Of Harare to Sunshine Development.
They allegedly went on to misrepresent to NMB Bank that they had a board resolution to acquire a US$1.5 million to fund the Mbudzi project, knowing that the title deeds of the land belonged to Sunshine Development.
They also did this knowing that they had no authority from the shareholders to use title deeds as surety.
Van Blerk together with his accomplices failed to service the NMB Bank mortgage bond resulting in the land being transferred to NMB Bank again without the knowledge of City Of Harare, thereby prejudicing City Of Harare value of the said stand valued at US$1.5 million.
On Thursday, the Zimbabwe Republic Police (ZRP) together with the Criminal Investigations Department (CID) began a crackdown in Harare’s central business district.
M&T