THE cash-strapped Gwanda municipality has been sucked in yet another scandal after it entered into a partnership with a land developer that will see the local authority lose over 320 housing stands for the construction of a mere 17 three-roomed semi-detached houses and servicing of 136 medium-density stands.
ALBERT NCUBE OWN CORRESPONDENT
The deal, which has been described as dubious by residents, was signed last Tuesday by town clerk Priscilla Nkala and Mornef Investments (Pvt) Ltd managing director, only identified as E Gumbo.
The memorandum of understanding (MoU) gleaned by Southern Eye reads, “The public-private partnership entered is that the land developer demolishes the 17-year-old one-roomed Jahunda houses and reconstructs three-roomed semi-detached houses for two families and servicing of 137 medium-density stands.
“In return council cedes its right to 176 Spitzkop North medium-density stands, 131 Spitzkop Extension high-density stands and 20 low-density stands (area to be advised in due course) to offset the costs incurred in the reconstruction of Old Jahunda houses and servicing of 137 Hlalani Kuhle medium stands for council,” the agreement reads.
According to the agreement Mornef of Zvishavane shall demolish the dilapidated one-roomed houses at a cost of $1 300 each and will earn $22 000 for destruction.
Mornef will charge the local authority over $18 000 for the construction of the semi-detached houses.
According to the land developer, the cost of servicing a medium stand is $6 000. The MoU came about following a resolution by the majority Zanu PF councillors, whose relationship with Mornef has in the past raised eyebrows.
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Last year Mornef reportedly hosted a party for council officials in Zvishavane after being awarded land in town. Residents have in the past complained at the high-priced Mornef stands and now questions have been raised on this deal with some accusing councillors and council management of corruption.
“I wonder what drove council to enter into such a deal where they stand to lose a lot, it obviously does not make sense,” Newton Nkomo said.
Almost 20 000 residents are on the town’s waiting list and have been calling on the municipality to provide land to them.
Despite Local Government minister Ignatius Chombo warning councils against using land to settle debts, the Gwanda municipality has defied the order with revelations that the 137 stands to be serviced will be allocated to workers to settle outstanding salaries.
Gwanda Residents’ Association spokesperson Bekezela Maduma Fuzwayo said Chombo must intervene and stop the rot at the municipality.
“We have not seen the contents of the contract, but if that is true, this is now purely the responsibility of the minister to take action,” he said.
“We have always been asking council about Mornef, purely to protect council, but they have been very defensive about it.
“We can only hope for a good explanation on this relationship and dealings. There is no way those Jahunda houses could cost as much as a house in Waterford (Bulawayo).”
Contacted for comment, Nkala, who drafted the agreement, refused to shed light on dealings with Mornef.
“I am not at liberty to discuss that with you, topic closed,” she said before hanging up her phone.
