By Business Reporter | ZimEye | Date: August 9, 2024 | Harare, Zimbabwe – A bombshell report released by a government special audit task force has uncovered staggering corruption and mismanagement in the development of Carrick Creagh Farm, a high-profile residential area in Borrowdale, Harare. The investigation reveals a massive scandal involving state land officials and Arosume Property Development, with losses to the state exceeding USD 1.2 billion.

Key Findings

1. State Land Losses Over $1.2 Billion: The audit estimates that the value of state land lost due to corrupt practices and mismanagement by Arosume Property Development, in collusion with officials from the Ministry of Local Government, Public Works, and National Housing (MLGPW), is over USD 1.2 billion at current market values.
2. Exorbitant Development Fees: Beneficiaries of the Carrick Creagh housing project have been charged development fees ranging from USD 54,000 to USD 439,000, which they contest as excessively high and lacking transparency. The audit found that Arosume could not provide a clear breakdown of these costs, further raising suspicions of financial impropriety.
3. Illegal Land Allocations and Double Dipping: Arosume was allocated 80 stands by the MLGPW, far exceeding the 50 stands initially agreed upon in the Tripartite Agreement. This additional allocation, made without government approval, allowed Arosume to resell repossessed stands from defaulting beneficiaries, profiting twice from the same land—a practice identified as illegal “double dipping.”
4. Inflated Land Development Costs: Arosume imposed overall land development costs ranging from USD 500,000 to USD 1.5 million, figures that the audit describes as “unheard of” given the developer’s failure to complete key infrastructure projects. Thirteen years after the project’s inception, roads, water reticulation, and other essential services remain unfinished.
5. Corruption and Abuse of Office: The audit also exposes serious corruption within the Stateland Office, with officials living lavish lifestyles disproportionate to their known incomes. Some officials were found to have assumed debt collection roles on behalf of Arosume, raising concerns about kickbacks and abuse of public office.
6. Conflict of Interest in Legal Proceedings: In a particularly egregious case, a lawyer, facilitated the illegal repossession of a resident’s land and transferred it to his wife, while representing Arosume in court. This blatant conflict of interest underscores the deep-seated corruption linked to the development.

Recommendations and Next Steps

The audit calls for immediate legal action to recover the lost state assets and for a thorough investigation into the implicated individuals and entities:

• Demand for Payment: The MLGPW is urged to demand payment of the intrinsic land value for the 80 stands from Arosume, and to pursue legal proceedings if necessary.
• Lifestyle Audits: A lifestyle audit is recommended for Stateland Office administrators, with disciplinary and criminal actions suggested for those found guilty of corruption.
• Resolution of Disputes: The audit calls for a roundtable discussion to resolve the various disputes, including the exorbitant development fees and illegal subdivisions.
• Strengthening Oversight: The report highlights the need for stricter governance and oversight to prevent such abuses in the future, including ensuring that all guarantees and allocations receive proper approval from the Ministry of Finance.

This report lays bare the scale of corruption and governance failures within Zimbabwe’s land administration, raising serious concerns about the management of state resources. The revelations are likely to prompt widespread public outrage and calls for swift government action to hold those responsible accountable.

-ZimEye