IDBZ manager probed in student facility fraud

The Infrastructure and Development Bank of Zimbabwe (IDBZ) has launched an investigation into former senior manager Suckson Muswe, formerly known as Makwasha, over allegations that he inflated costs during the construction of a new student accommodation facility in Bulawayo, potentially siphoning substantial project funds.

Sources familiar with the matter allege that Muswe, who played a key role in the project's development, exploited his influential position in procurement processes to overstate the costs of materials and services. The facility, constructed at an estimated US$17.5 million, was commissioned by President Emmerson Mnangagwa late last year.

Preliminary investigations suggest that Muswe may have colluded with subcontractors to submit inflated invoices, with illicit proceeds allegedly used to acquire multiple properties both locally and abroad. The full extent of the financial prejudice remains under investigation.

"Due to an ongoing investigation, the bank is unable to release any additional information at this time," said IDBZ chief communications officer Priscillah Zvobgo, confirming the probe.

Criminal charges have since been filed against Muswe as part of the IDBZ's effort to uphold corporate governance and financial integrity.

The Bulawayo student facility was developed through a special purpose vehicle (SPV) called Zimcampus Properties Private Limited, created to implement, own, and operate the complex. The project was initially funded through the purchase of land from a private owner who had designs but lacked capital to execute the project.

To mobilise financing, the IDBZ partnered with Old Mutual Life Assurance Company Zimbabwe, Zimnat, and the Motor Industry Pension Fund, diluting its own shareholding to a minimum. At project completion, ownership stood as follows: IDBZ 7.67%, Motor Industry Pension Fund 19.44%, Old Mutual 49.37%, and Zimnat 23.52%. Several nominees invested via Old Mutual and Zimnat, including the Public Service Commission Pension Fund, which contributed approximately US$1.8 million.

The Bulawayo facility aims to address Zimbabwe's tertiary student housing shortage and forms part of the IDBZ's broader mandate to finance and facilitate critical infrastructure projects across the country, including housing, energy, and transport, in partnership with public and private stakeholders.

The ongoing investigation underscores the bank's commitment to financial transparency and accountability, particularly in high-value national development projects.