KWEKWE City Council has finally insured all its fixed and movable assets following a tender process ending years of high risk on its property.
Property worth over $500 million, which includes the three-storey and double winged civic centre, management houses and other properties, had gone for over two years without insurance as council failed to service its premiums with ZIB Insurance Brokers.
This resulted in council failing to receive compensation when Amaveni Tavern went up in smoke in May 2012.
In January this year, Kwekwe mayor Matenda Madzoke confirmed that council properties were exposed because of not being insured.
Madzoke indicated that his council had failed to insure property that attracted high insurance premiums.
The tavern, once a popular spot in Kwekwe with both local and foreign tourists, was razed to the ground by wild fire and remains in state of ruins.
In February, council invited insurance companies to bid to provide cover for the local authority to ensure its assets were protected from theft, fire and other destructive agents.
Out of the eight companies that placed bids, Capital Insurance Brokers won the tender to provide cover for all council assets at $23 732,63 per year.
Although Navistar Insurance Brokers had offered to cover council property at $21 919 per year, its alleged shady dealings with Air Zimbabwe came back to haunt it as the city fathers treated the bid with suspicion, according to city treasurer Rejoice Maweni.
“Navistor was disqualified because of its pervious dealings with Air Zimbabwe where there were allegations that the national airline was prejudiced of its aviation insurance policies,” Maweni said in procurement committee meeting minutes made available to our sister paper NewsDay.
Maweni also said she had received a letter from the Commissioner of Insurance, Pension and Provident Funds giving notice of intention to cancel Navistar’s registration and suspension from conducting insurance business.