ZACC to investigate Augur Investments

MOSES MATENGA

The Harare City Council (HCC) has resolved to report the Ukrainian company Augur Investments to the Zimbabwe Anti-Corruption Commission (ZACC), claiming it was duped by Augur on four projects across the city worth millions of dollars.

HCC and Augur entered into a deal in 2007 and 2008 to construct a state-of-the-art golf course in Warren Hills, a hotel at the Cleveland Dam, and modern flats and a truck inn at the Mbudzi Roundabout.

Augur committed to pay more than $30m to the HCC in exchange for land but failed to meet its side of the bargain despite the local authority having transferred the land to Augur as per the agreement.

“This happened in 2007-08 when a commission that was in charge authorised the HCC management to enter into a joint venture with Augur Investments,” acting town clerk Charles Kandemiri told councillors this week.

“One of the projects was the Warren Hills golf course and the People’s Market; the others are state of-the-art flats and the Mbudzi Roundabout project. There was also the Cleveland Dam project where a state-of-the-art hotel was supposed to be constructed. Augur was supposed to come in with more than $30 million and Harare City Council was set to contribute the land. Later on a valuation was to be done for shareholding purposes.”

Kandemiri said “the city transferred the land to Augur Investments for Warren Hills and the People’s Market. But Augur did not do anything. Without advising the council as a shareholder, Augur went on to borrow $1,5m from NMB using council land as security to borrow and that was in breach of the agreement.”

He said Augur has been operating at the Mbudzi Roundabout but giving nothing to the council. After Kandemiri’s presentation, the council decided to take the matter to ZACC while others said there could be internal council accomplices who needed to be fished out first.

Jacob Mafume, HCC’s human resources chairperson, said ratepayers were losing millions of dollars to such dubious deals and that the council should show its teeth in dealing with accomplices.

Council entered into several deals with Augur during the said period and most of the deals have been subjected to investigations. Most of the deals were signed off by Local Government Minister Ignatius Chombo and former town clerk Tendai Mahachi.

Related Articles

Leave a Reply

Back to top button