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Recent developments reveal that Mr Chiyangwa rebuffed the Redcliff Town Council’s intention to compensate him over the flopped 200-hectare land deal, which the two parties entered into in 2009.

 

Indications are that the matter could be proceeding to the High Court if Redcliff Municipality fails to persuade Mr Chiyangwa to agree to an out-of-court settlement.

Chronicle has it on good authority that Mr Chiyangwa is now insisting that Redcliff Town Council should repurchase the land from him at a new price, a move that has been rejected by the local authority.

Redcliff Mayor, Councilor Joseph Matewa, recently confirmed that Redcliff Municipality was in the process of negotiating with the Harare-based business mogul on how best the local authority could refund him.

Clr Matewa said this development came following advice to the council from the Ministry of Local Government, Rural and Urban Development.

“We are negotiating with Mr Chiyangwa to see if we can pay him back the money that he invested into the 200-hectare land deal. The ministry advised us to do so after we failed to agree terms with Mr Chiyangwa,” he said.

Clr Matewa said Redcliff Municipality was still in financial dire straits and was in the process of looking for funds to pay back Mr Chiyangwa.

“Our coffers are empty for now. We will have to come up with a payment plan to settle this debt,” he said.

Redcliff Town Council reversed the land deal they entered into with Pinnacle Holdings, a company owned by Mr Chiyangwa.

The land deal brokered by Mr Chiyangwa and the council helped sustain council operations at the height of the local authority’s financial challenges in 2009.

Clr Matewa said Redcliff Town Council reversed the land deal after realising that the deal was prejudicial to the council as the land had been sold for a “song”.

“As the town council, we were not satisfied with the money offered by Mr Chiyangwa. The conditions of the agreement were unacceptable as the money realised from the sale of land was too little compared to its market value,” he said.

Clr Matewa said the local authority once attempted to engage Mr Chiyangwa on revisiting the land deal but the business mogul was not cooperative.

Contacted for comment, Mr Chiyangwa insisted that he was the rightful owner of the land in question.

He said the Redcliff Municipality was just trying to buy time by negotiating an out of court settlement.

“The matter is at the High Court. We must wait for the court outcome. Redcliff Municipality must not develop cold feet if they are innocent,” said Mr Chiyangwa.

He, however, said he would not entertain any other deals with Redcliff Municipality other than reselling the piece of land back to the local authority at a new price.

“If Redcliff Municipality is willing, I could resell that piece of land back at my own asking price,” he said.

Mr Chiyangwa bought the piece of land in question for $658 000 in 2009.

The businessman paid $375 000 as deposit.

After reversing the deal in 2010, Redcliff Town Council immediately engaged its lawyers as it sought the way forward.

The council said then that it wanted the matter resolved amicably with Mr Chiyangwa who had bailed the municipality at its hour of need.