Clive Tatenda Makumbe in Zimbabwe
An investigation into the Mkoba 21 housing scheme has opened a can of worms, revealing a series of scandals that include the illegal sale of land, gross negligence and incompetence.
The probe follows residents’ approach to the Minister of State for Provincial Affairs and Devolution, Owen Ncube, over delays in servicing Mkoba 21 stands that were availed more than 10 years ago.
Investigations by NGO Africa Watch revealed that the special committee was created to interrogate issues delaying the servicing of Mkoba 21 by three contractors: Sheasham Investments, Wack Drive and CASAS Properties.
Reliable sources told this publication that the special committee was tasked with examining matters that include the selling of stands without certificates of compliance; the appointment of Engineer Matirongo as the Mkoba 21 project officer without a council resolution; and the absence of monthly site meetings with the developers.
The Mkoba 21 special committee is said to include councillors Lovemore Choto (Ward 6), Philemon Mawere (Ward 16), William Mazango (Ward 18), Girely Zvidzai (Ward 3) and Faith Chuma (Ward 2); Director for Engineering Services Masauso Stores; Acting Chamber Secretary Tapiwa Marerwa; Town Planner Kudakwashe Chikuku; Land Surveyor Brian Mandima; Acting Estate and Valuation Manager Dr. Mlambo; Principal Administrative Officer Mbangana; Administrative Officer R. Matowa; and Gweru District Development Coordinator (DDC) Tarisai Mudadigwa.
Sources said members of the special committee observed several issues concerning the delay of the Mkoba 21 project. A source (name withheld) said Gweru City Council (GCC) and Wack Drive entered into a memorandum of agreement (MOA) without establishing the actual number of stands on the portion allocated to Wack Drive — a matter currently being interrogated by the engineering services department.
The source revealed that GCC and Wack Drive agreed to sell the stands before they were fully serviced and to people who were not on the council waiting list. This prompted the special committee to summon the Acting Director of Housing and Community Services, Mrs. Unity Jaji, to explain why undeveloped stands were being sold without certificates of compliance; her explanation is yet to be made public.
Furthermore, Sheasham Investments is seeking a contract extension from council over the Mkoba housing scheme and has yet to conclude a memorandum of agreement with Wack Drive to jointly construct the main sewer line, a step that will delay handover of stands to beneficiaries.
Reliable sources revealed that when Sheasham Investments and council entered into an agreement, council agreed to allocate more than 1 000 surveyed but undeveloped high-density stands — sized between 200m² and 600m² — using a 70:30 sharing ratio. Under that arrangement, Sheasham Investments would receive 70 percent, and Gweru City Council 30 percent of the earnings.
Council later discovered that the stands had already been sold, meaning Sheasham Investments was only going to receive around 180 stands, further delaying the project. Council then compensated Sheasham Investments by providing stands at Mkoba 20 extension and some at Gwapa, where the Environmental Management Agency (EMA) has yet to provide an Environmental Impact Assessment (EIA) because the Woodlands dumpsite has not been relocated.
In an interview, a former councillor (name withheld) said the 70:30 principle was a bad deal for Gweru and should have been renegotiated or cancelled.
“That deal was doomed from the beginning. It was a botched deal!!! Council employees misled us and some councillors who took the bait benefited from the botched deal. If any council was in their right state of mind, they would not have agreed to such because this cost residents dearly. Each and every resident who has a stand at Mkoba 21 and Randolph has the right to protest and demonstrate against council because of the damage done to their aspirations and dreams of building their homes. Residents sacrificed their hard-earned money for their future. Council could have at least negotiated a 60:40 ratio for the project,” he said.
“The deal between Sheasham Investments and council was utter deception. The land that was given to Sheasham Investments for them to service had already been sold — we mean all stands — which forced council to compensate by giving them around 400 stands at Gwapa and some at Mkoba 20 extension, which are currently being sold to the public at premium prices. This defeats the vision and mission of serving the people.
“Sheasham Investments is in big trouble. They have to wait for EMA to provide the EIA certificate for them to service the Gwapa stands, because council cannot afford to decommission and relocate the Woodlands dumpsite. Relocating the dumpsite requires roughly USD $3 million because it is a process and not an overnight job,” he added.
The source further stated that CASAS Properties had no capacity to develop the Mkoba 21 stands or the vending projects contracted to them.
“We gave CASAS Properties some of the stands at Mkoba 21 and nothing has been done. At the same time, we gave them vending projects during COVID-19 back in 2020 at Ivene Rank, Kombayi Wholesale Market, Kombayi Food Court and Warehouse, and Mtapa Vending Site — projects that are far from finished, despite promises they would be completed in weeks.
“Gweru City Council is busy chasing vendors in town and destroying their only source of sustenance, which is wrong,” the source said.
When Gweru Residents and Ratepayers Association (GRRA) Executive Director Cornilia Selipiwe was reached for comment, she expressed the community’s sense of betrayal by council and lamented the failure to meet Vision 2030 goals of creating affordable, sustainable, modern, functional housing and social amenities in Gweru.
“This is totally disappointing that council would fail to serve residents or fulfil their mandate. This is utter betrayal of the needs of residents and the country. We call upon all residents — not only beneficiaries of Mkoba 21 stands — to join together in holding our council to account so they remain transparent, respectful and accountable to the residents they serve.
“Enough is enough. It is high time council answers why stands have not been availed,” she said.
Gweru City Council Communications and Public Relations Officer Vimbai Chingwaramusee stated that council is engaging contractors to speed up completion of the Mkoba 21 projects.
“The sewer line has been installed; the contractors are just joining to the main sewer line. It is part of their contractual obligations. Realising the demand for accommodation, the local authority decided to offer stands to residents. It was unfortunate that development did not proceed as expected.
“Council appointed its technocrats to oversee the projects as they began in 2014 up to 2016 when the majority of the stands were sold. In 2020, to ensure expedited services, council decided to engage partners to develop Mkoba 21 stands. However, as a local authority we are keen to speed up the development process to ensure that people can start building,” she said.
Where the Mkoba 21 stands saga began
In 2014, Gweru City Council started selling Mkoba 21 residential stands after a full council resolution at a meeting chaired by former mayor Hamutendi Kombayi.
Notifying those on the housing waiting list was to be given first preference, as council had a waiting list of over 30 000 residents — indicating a huge housing backlog and a need for around 6 600 stands for Gweru residents.
About 15 stands were allocated for institutional and commercial use whilst the remaining stands were designated for residential purposes.
Banks such as National Building Society (NBS) turned down the Mkoba 21 project, forcing council to engage private developers due to lack of financial capacity to develop the area.
Out of the 6 600 residential stands, more than 1 000 were reserved for local authority workers as compensation for non-payment of salaries.
According to the Auditor-General’s 2020 report, the City Council used estate funds for recurrent expenditure contrary to section 300 of the Urban Councils Act [Chapter 29:15], which requires estate funds to be used for capital-related expenditure such as “purchase and servicing of land.” The analysis of the estates account revealed funds amounting to US$6,870,815 that were not justified. The same amount represents stands which were sold.
Reliable sources said most of these funds were used without council resolution and for purposes including salaries, travel allowances, packages (cars and benefits) for key staff and other service delivery issues, which delayed the servicing of Mkoba 21, Shamrock and Randolph stands.
Those funds were intended for servicing Mkoba 21: purchasing heavy equipment to install water and sanitation systems, streetlights, roads and drainage for beneficiaries after certificates of compliance had been issued.
Valuation of Mkoba 21 stands
Valuation rolls list properties within a local authority’s boundaries for billing and taxation purposes. The Urban Councils Act Chapter 29:15 provides for creation of valuation offices by councils.
Council’s valuation roll was last updated in 2005 and later updated in 2013. However, the 2013 roll was not conclusive as some properties remained unvalued, causing a serious loss of revenue.
Investigations by Africa Watch disclose that council was not maintaining a record of estate debtors, to the extent that revenue accumulated from the sale of stands on credit was not reflected in council’s financial statements. The estates debtors’ database was incomplete, and receipts were not posted to each estate debtor’s account.
Moreover, several workers in the housing and community services department sold a single stand to more than two residents due to poor internal controls. There was also no coordination between finance and housing departments, creating loopholes for council employees to exploit.
Subsequently, council engaged the Ministry of Local Government, Public Works and National Housing for a general revaluation of the city, with funding provided for in the 2015 council budget announced by former Finance Director Tarisayi Edgar Mwedzi.
In 2016, the Ministry ordered council to stop selling municipal stands to prospective buyers, since valuations were lacking and sales had been conducted in secret. The same year, the Ministry circulated a request for authority to sell stands in Mkoba 21, citing lack of income to fund service delivery projects such as refuse collection, water and sanitation, and income-generating projects (e.g., a brewery) to sustain operations.
In 2018, the council led by former town clerk Elizabeth Gwatipedza recommended the Infrastructure Development Bank of Zimbabwe (IDBZ) to councillors, led by former mayor and current Gweru Urban MP Josiah Makombe, to approve IDBZ’s uninvited bid to service Mkoba 21 and St Anne’s Lundi Park stands.
In 2019, councillors requested a due diligence visit to IDBZ projects in Kariba and Nyamunga low-density areas, but found little activity; the bank was experiencing financial challenges due to monetary and fiscal fluctuations. This finding was rejected at a full council meeting.
Consequently, council organised a business conference in 2020 at Town House that invited many developers to bid for Mkoba 21, with Sheasham Investments, Wack Drive and CASAS Properties eventually contracted for the housing project.
