Gwandagate! Councillors and officials loot funds in housing deal

Names of six Municipality of Gwanda councillors and three council officials have been leaked in a $4 000 each kick back scandal in a deal running into hundreds of thousand dollars with a Zvishavane based land developer.

A contract between the Municipality of Gwanda and Mornef Investments leaked to the media from sources within the two parties mandates Mornef Investments to build 17 semi detached 3 roomed houses in Jahunda at an outrageous cost of $18 367 per unit. The company is  also to service 137 medium density stands at $6 000 per stand.

As payment to Mornef, the Municipality is expected to part with 176 serviced medium density stands, 131 serviced high density stands and 20 low density stands, which the company will be allowed to sale and retain the proceeds. The medium and high density stands have already been identified and allocated to the company while the low density stands are yet to be allocated as council is yet to service them.

The payment clause in the contract reads;
"....where as the land developer is willing to assist in the reconstruction of 17 old Jahunda houses and servicing if 137 medium density stands. The land developer will use funding raised from the sale of serviced stands which are part of the agreement, namely Spitzkop North (176 medium density) Spitzkop Extension (131 high density stands) and 20 low density (area to be advised) to fund the reconstruction of old Jahunda houses and servicing of 137 medium density stands for council."

Very reliable sources close to both parties in the agreement claim that as a "thank you" for the jackpot, the Zvishavane based land developer has paid six councillors and three council officials $4000 each for the deal which never went to tender as per provisions of the Urban Councils Act. The sources provided the names of the councillors involved in the deal which sailed through the council's Health and Housing Committee and full council without the full details of the agreement revealed to council.

The contract involves the demolition of 17 Old Jahunda one room units and construction of 17 three roomed semi detached units under the Jahunda Redevelopment Scheme. According to the contract, the demolition of each one room unit costs $1 300 and the construction of the semi detached units $17 067. Prior to the agreement which is termed a Public Private Partnership in the contract, council was demolishing each old one room unit using casual labourers at $300 per unit. The construction of the new
semi detached units was done by council employees at a total cost of about $7 000 per unit.

In its presentation to full council, the Health and Housing Committee recommended that Mornef Investments be allowed to take over the project as it would speed up the process of constructing the semi detached units. The contract gives the land developer 12 months from the date of the contract to complete the 17 semi detached units and servicing of the 137 medium density stands.

According to sources, Mornef Investments already owns more than 400 stands in the town which the company paid for by buying council 5 new Nissan Hard body vehicles which are yet to be registered in the Council name a year after they were delivered. The sources claim that the vehicles given to council as payment for the stands were bought on credit by the land developer and can not be put under the Municipality's name until they are fully paid for. The vehicles are said to be still using the black in yellow registration plates which are private vehicle identity instead of the black in white local government plates.

The sources further allege that some councillors were bought vehicles by Mornef Investments after the company was given the 400 stands. Mornef Investments is believed to be owned by a brother to Gwanda Central Member of Parliament Edison Gumbo and ZANU PF stalwart Joram Gumbo.