IDBZ in another Masvingo storm
By Staff Reporter
IDBZ had agreed to fund TCL’s Runyararo South West housing project through a loan advanced to Mbudzi, but failed
MASVINGO — For the Infrastructural Development Bank of Zimbabwe (IDBZ), Masvingo city is a “cursed” investment destination.
For the second time in a decade, another housing project funded by the bank has stirred controversy and the matter has taken the same course as the first; it has been stalled by a legal battle a few months after being started.
In 2005, a ZW$6 million housing project the IDBZ embarked on partnership with retired colonel Kudzai Mbudzi’s Treasure Consultants (Pvt) Ltd (TCL) property development firm became mired in controversy, turning sour and eventually going to the Supreme Court for determination.
IDBZ had agreed to fund TCL’s Runyararo South West housing project through a loan advanced to Mbudzi, but failed to fulfill its part of the contract and gave TCL ZW$81 billion instead of the ZW$90,5 billion which the parties had agreed on to construct 2 000 housing units.
Mbudzi’s construction firm was placed under curatorship and had its agreement of sale cancelled in 2008 for allegedly defaulting on the development.
Under the scheme of reconstruction headed by Afaras Gwaradzimba, they agreed the bank would buy Mbudzi out at the then current market rates, but the bank failed to raise the ZW$250 billion in 2007.
Another attempt to sell the project by public auction was unsuccessful after the two bidders failed to raise the purchase price.
It was during this time that the financial institution entered into an agreement of sale with the Masvingo City Council, leading to a bruising six-year legal battle which Mbudzi won in 2013 after successfully appealing at the Supreme Court.
And now Masvingo has literally proved a “hard hat area” for the bank for the second time.
After entering into an agreement with a local property developer, George Safaris Properties, to service low density stands in what is called Clippsham Heights, IDBZ has again faced another hurdle as ownership of the 208-hectare piece of land, located a few kilometres outside Masvingo city along the Beitbridge Highway, is now contested.
The land belonged to the late Masvingo businessman, Christie Deidricks, who died in 2014.
The Deidricks’ Lot 2 of Clippsham farm was gazetted and given to George Safari Properties by government in 2015, according to IDBZ.
The farm includes a BP Shell service station.
But a former Masvingo City Council MDC-T councillor, Misheck Gapare, has laid claim to the Deidricks family estate, insisting he was appointed the executor of the estate.
Gapare said his company, Labourhold Properties (Pvt) Ltd was the only company with a legally binding power of Attorney to run the affairs of the farm.
Recently, Gapare, who defected to ZANU PF, wrote to the bank advising it to stop selling the stands, saying the land was given to him by the late white businessman. He also published the correspondence in the local newspapers last week, advising potential clients against buying the stands.
And only last week, Gapare erected his company billboards and deployed his construction firm at the contested site.
This then forced IDBZ to turn to the courts.
The financial institution’s public relations executive, Priscilla Mapuranga, said on telephone from Harare on Tuesday that they had approached the High Court to settle the issue.
“I cannot comment much on the matter because we have approached the High Court and we are treating the matter as criminal. I would not go further into details, otherwise it will be sub-judice,” she said.
Only time will tell if the bank will win at the courts this time around.
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