News / National
Land developer up for fraud
06 Jul 2024 at 06:44hrs | Views
Directors of Full Life Open Arms Africa (Private) Limited Andrew Chegutu and Godknows Nelson Mandaza have been taken to court for allegedly defrauding Chiredzi Town Council and Chiredzi Rural Council of 1,700 stands and US$1,200,000. They appeared before Harare magistrate Stanford Mambanje, who granted them US$300 bail each and remanded the case to August 14.
In 2015, Chiredzi Town Council received 750 hectares from the Ministry of Lands to develop residential stands for the local community. Since the land was under Chiredzi Rural Council, a joint committee was formed to find a developer. In April 2014, the two councils engaged the accused for a feasibility study and planning tasks.
In July 2022, the accused applied for a US$1,200,000 loan from NMB Bank, allegedly misrepresenting that it was guaranteed by the councils with 1,700 stands as collateral. The councils believed the loan was for project development, but the accused converted it for personal use and sold the 1,700 stands without the councils' knowledge.
The Zimbabwe Anti-Corruption Commission found that the stands were not serviced as agreed, and there were no subdivision permits or compliance certificates. Additionally, the councils were unaware of the actual loan amount borrowed by the accused for the project.
In 2015, Chiredzi Town Council received 750 hectares from the Ministry of Lands to develop residential stands for the local community. Since the land was under Chiredzi Rural Council, a joint committee was formed to find a developer. In April 2014, the two councils engaged the accused for a feasibility study and planning tasks.
In July 2022, the accused applied for a US$1,200,000 loan from NMB Bank, allegedly misrepresenting that it was guaranteed by the councils with 1,700 stands as collateral. The councils believed the loan was for project development, but the accused converted it for personal use and sold the 1,700 stands without the councils' knowledge.
The Zimbabwe Anti-Corruption Commission found that the stands were not serviced as agreed, and there were no subdivision permits or compliance certificates. Additionally, the councils were unaware of the actual loan amount borrowed by the accused for the project.
Source - newsday
