Shady land deals exposed

Besides identifying this major breach of standards, a report compiled by Government-appointed investigators said the council was holding very frequent meetings, at both council and committee level, apparently to allow those who attended to claim attendance allowances.

It also found some councillors and officials of the MDC-T-dominated council were getting loans, without the required council resolutions and without a repayment plan in force.
While this was happening, Chinhoyi faced collapse with staff and creditors owed large sums.
“A syndicate comprising staff and councillors has sprouted and acts in common purpose for gain at the expense of council.
“It was our finding that there are virtually no control systems as neither the housing committee nor council play any meaningful role in the stand allocation process,” reads the report.
Under standard policy, the council is obliged to maintain a stands waiting list for use in allocation on first-come first-served basis.
“It was the committee’s observation that this modus operandi has been discarded in favour of an ad hoc and corrupt-ridden practice in which councillors hunt for prospective land buyers, scout for undeveloped stands, use their influence to have same ‘allocated’ to them and dispose (of) the stands at a profit.

“The councillors would not pay even a dime for these stands which they proceed to sell to desperate persons. The whole process is obviously flawed and clearly demonstrates that things have fallen apart at Chinhoyi Municipality.”
The report identified four councillors as involved in these land deals.

Another councillor is said to have amalgama-ted eight commercial stands into one while a for-mer official reportedly converted a stand from commercial to residential use before developing it without making any payment to council.

The councillors are said to have exploited a ministerial directive with respect to allocation of stands to councillors, with each grabbing three stands — one commercial, one industrial and one residential.

Local Government, Rural and Urban Development Minister Ignatius Chombo had said councillors should get one residential stand each.
“None of the councillors have paid for the sta-nds to date and council was prejudiced of huge amounts of money as a result,” added the report.
Authorities at Chinhoyi Municipality are accu-sed of flouting tender procedures in the procurement of goods and services.
“A classic case is the vehicle/land swap deal. Council lost land to individuals who brought old and dilapidated vehicles some of which lasted less than a month.
“One councillor himself supplied five of the 10 vehicles in these swap deals. Of the 10, six are now irreversibly broken down within a very short period of time.”

The report says Chinhoyi Municipality’s accounts books are in shambles with the last audit having been conducted in 2007.
“In October (2010) Chinhoyi incurred a total expenditure of US$1 742 270,85 against income of US$380 234.22 leaving a deficit of US$1 362 036,67. Books of accounts are in shambles and there is no evidence of supervision.
“This means Chinhoyi Municipality cannot borrow externally to help in addressing its financial crisis and for service delivery.”

Workers are owed a total of US$1 199 135,88.
The municipality’s other debts include:

  • Zimra — US$208 622
  • NSSA — US$48 949 20
  • Zesa — US$400 000
  • TelOne — US$142 509
  • NRZ — US$30 000

Council has not been paying Value Added Tax (US$29 102,51) and owes other creditors like Old Mutual and NetOne over US$40 000.
Despite the financial mess, councillors and senior staff have been getting loans and salary advances at will.
“Your committee established that council was awarding loans and advances to both councillors and staff for various social needs like clothing, school fees, visit to rural homes though there is no council resolution to that effect,” reads the report.

Loans and advances given to nine councillors as at November 2010 totalled around US$26 000 with more than US$4 000 going to just one councillor.
There is no recovery plan for the loans and advances.
The report notes that service delivery was “at its lowest ebb at Chinhoyi Municipality” and “councillors lack necessary craft literacy vis-à-vis monitoring of council operations”.

The council has neither a fire tender nor an ambulance.
“Due to the non-availability of a fire tender and an ambulance, property and life in Chinhoyi is indeed insecure.
“The destruction of Chinhoyi Central Police Station and Chinhoyi Hotel by fire are sufficient testimony of the extent of vulnerability of life and property in the municipality,” further states the report.

The Urban Councils Act lays down one council meeting a month but the Chinhoyi Municipality convened 19 special meetings and “countless unscheduled committee meetings” in 2010.
“It was our observation that these ad hoc meetings were not necessitated by the need to attend to council business but to essentially line up councillors and officials’ pockets in the form of T and S (travel and subsistence) and sitting allowances averaging US$20 each,” the report said.-The Herald

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