Stands Scam: US$20 million Windfall
30 August 2024
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Confusion Over Sale of Council Land Sparks Outcry in Harare

Harare, Zimbabwe – A storm is brewing in Harare over the sale of 10,000 unserviced residential stands in Mabvuku and Warren Park, amid allegations of impropriety involving the Harare City Council and two private developers. The controversy erupted after it emerged that the council had allowed Shelter Zimbabwe and Pure Gold, two prominent land development companies, to sell the stands without completing the required infrastructural development.

Councillor Blessing Duma, the chairperson of the council’s audit committee, raised the alarm, revealing that the two developers had been granted contracts to develop a combined area of 200 to 300 hectares in Mabvuku, which was already earmarked for residential use. Under the agreement, the developers were supposed to install essential services such as water and sewer mains, roads, and storm-water drainage systems. However, instead of fulfilling these obligations, the companies allegedly sold the land as unserviced stands.

“If we calculate at US$10,000, which is the usual selling price per stand, it’s almost US$20 million that was realised,” said Cllr Duma. He criticized the developers for failing to carry out the necessary work and raised questions about the city council’s role in the transactions.

According to Cllr Duma, the audit committee, then chaired by Councillor Charumbira, sought a legal opinion on November 22, 2022, after discovering that the developers had not fulfilled their contractual obligations. The legal opinion, delivered on February 8, 2023, suggested two potential courses of action: either terminate the contracts and seek new developers or renegotiate the terms with the existing developers to enforce stricter conditions.

“We do not give a developer land to sell as unserviced residential stands because the purpose of the developer is to develop residential stands,” Duma asserted. “But now, the guys from the housing department, the principal allocation officer and the research officer, Mr. Edgar Dzehonye and Mr. Bindura, are saying that according to an agreement in 2020, they allowed the developers to sell unserviced stands.”

The situation has left many perplexed and raised serious concerns about the transparency and integrity of the process. The conflicting positions between the council’s audit committee and the housing department have only added to the confusion. While the audit committee argues that the developers were in breach of their contracts, the housing department maintains that the sale of unserviced stands was permitted under the original agreement signed in 2020.

The revelation has sparked outrage among residents and stakeholders, who fear that the lack of basic services could lead to a deterioration in living conditions. Many are demanding answers from the council and accountability from those involved in the decision-making process.

As the situation unfolds, the Harare City Council faces mounting pressure to clarify its stance and take appropriate action to address the growing concerns over the sale of unserviced land. With millions of dollars potentially at stake and the future of thousands of prospective homeowners hanging in the balance, the council must navigate the controversy carefully to restore public trust.

Meanwhile, residents of Mabvuku and Warren Park are left wondering whether they will ever see the promised developments materialize, or if they have been left holding the short end of the stick in a deal that appears increasingly murky.