Ex-Augur Investments MD speaks on Airport Road project

STAFF WRITER

Former Augur Investments managing director Michael Van Blerk has accused individuals and firms embroiled in legal battles with Augur Investments of running a “misinformation campaign” against the company in a desperate bid to avoid accountability in matters they are facing before the courts.

Van Blerk said the “misinformation campaign” against Augur Investments was being pursued by those chasing a sinister agenda against the firm while evading responsibility on legal matters they have to answer to.

He was responding to issues raised on alleged corruption by Augur Investments on the Airport Road project and deals entered into by a subcontractor Fairclot Investments.

“My suspicion is that defendants accused of wrongdoing against Augur and its employees are using these false statements to evade responsibility before Zimbabwe’s legitimate courts,” he said.

Following weeks of attacks on Augur Investments and other companies including West Properties owned by businessman Ken Sharpe, Van Blerk said he had decided to speak out and clear on issues that have been raised before.

“In 2008, Augur Investments OU and the City of Harare formed a joint venture for the Sunshine land development project. Zimbabwean staff were recruited for this work, which included Mbudzi People’s Market, a 6000 square meter covered market, amongst other projects.”

“The government approved this joint venture, and in 2009, Augur registered as a foreign investor with the Ministry of Justice. This JV invited Augur to plan, design, and construct the Airport Highway. As the Airport Highway is a national road, Augur and the COH were required to obtain government approval in order for Augur to construct it.”

He said the plan was approved by Cabinet and the ministries of Transport Local Government were designated as government supervisors with final approval received from the Ministry of Finance.

“Due to the municipality’s inability to make cash payments, 90% of Augur’s payment was offered in the form of land instead of cash,” he said. “The government supported this initiative and contributed additional land to the project in order to aid the COH. This was reduced to a legally binding contract signed by both parties.”

He added that Augur Investments recruited Fairclot, a local company, as a subcontractor under its direct supervision.

“In exchange for its services, Fairclot initially agreed to accept a 25% cash payment and a 75% land payment. This land payment portion could only be made after delivery of title from the COH. Fairclot breached these original contractual terms, and demanded a revision to a 40% cash payment and 60% land payment. Augur paid Fairclot 40% of the invoiced amounts in cash, close to USD 4 million in amount, with the remaining 60% to be paid in land.”

“The operational incompetence of the COH resulted in massive delays at Augur’s expense, impeding work from beginning to end. Augur suffered the brunt of delay-related expenses. The City of Harare then attempted illegally to terminate the valid contract, resulting in arbitration, which Augur, represented by Advocate Nelson Chamisa, ultimately won.”

“The arbitration and subsequent court award mandated that Augur be compensated with a parcel of government-owned land whose title was held by a law firm with which Augur had a close working relationship. Tragically, the appointed partner of this firm had died, disrupting the flow of information at the law firm, and the title deed was not delivered to Augur. Resolution was affected with the intervention of the Sheriff of the court.”

Van Blerk said following the successful arbitration, Fairclot was offered a land parcel as settlement for the outstanding payment but the company declined this contractual payment and elected to pursue legal action.

Fairclot, he said, was awarded a cash payment as a result of a court ruling, and Augur duly met this obligation.

“For unclear reasons, one of the Fairclot directors subsequently had a large billboard slandering Augur’s legal rights erected in Borrowdale and is currently on trial for this violation.”

He added: “Augur Investments continues its land development with multiple award-winning projects and will continue to do so, transforming polluted, undeveloped land in Harare into outstanding residential developments despite the statements made by a few disgruntled defendants on trial for legal misconduct.”