Kereke wins legal battle

Former Zanu PF legislator Munyaradzi Kereke has won a legal battle against the Harare Municipal Medical Aid Society (HMMAS), which had sought a refund of US$138,000 over a failed bid to purchase Fortress Hospital in Ruwa.

High Court Judge Justice Jacob Mafusire threw out the application by HMMAS, describing it as "manifestly opportunistic" and lacking merit.

"The plaintiff has failed to prove any aspect of its case," Justice Mafusire said in his ruling. "The first defendant destroyed the plaintiff's case completely. The plaintiff has no case. This suit is manifestly opportunistic. The defendants are entitled to judgment."

HMMAS had sued Kereke and Briward Trading (PVT) Ltd, seeking to recover US$138,000 it claimed to have paid as part of an allegedly fraudulent deal. The plaintiff also sought a declaration that the original sale agreement was cancelled and confirmation that it had paid in full for the hospital back in 2014.

According to HMMAS, it entered into two agreements in November 2014 to buy Fortress Hospital. One deal covered the immovable property - Stand 9653 Ruwa Township - where the hospital is located, while the other granted first refusal rights to purchase the hospital's equipment and movables.

The stated purchase price for the hospital building was US$800,000, which HMMAS claimed to have paid in full — US$700,000 through Kingdom/Afrasia Bank and US$100,000 via Muza & Nyapadi Legal Practitioners. An additional US$650,000 was allegedly paid for assets through an agent, Newton Madzika.

However, the dispute emerged after Kereke and the then HMMAS CEO Evaristo Rukasha allegedly signed an acknowledgement of debt in March 2022 stating that US$400,000 was still outstanding. HMMAS accused Rukasha of colluding with Kereke and abusing his position to authorise the agreement and effect payments without board approval.

A subsequent agreement signed on August 31, 2023, revised the purchase price to US$1,138,900 and acknowledged US$866,900 as paid, with a balance of US$272,000. HMMAS said it had paid US$138,000 under this deal before a newly reconstituted board, chaired by Zacharia Murerwa, deemed the agreement fraudulent and sought to recover the funds.

Kereke, however, contested the entire claim, arguing that the alleged payments were either never made or improperly handled by HMMAS. He said it took over eight years for him and Briward Trading to receive the initial US$700,000 deposit, while the remaining US$100,000 was never received. Kereke further denied ever receiving the US$650,000 for the hospital's equipment.

He accused Muza & Nyapadi of diverting the funds elsewhere and said the plaintiff's case was riddled with inconsistencies.

The court sided with Kereke, finding his defence credible and the plaintiff's claims unsupported by clear evidence. As a result, HMMAS's lawsuit was dismissed, and Kereke emerged victorious in the protracted legal saga.