23 November 2018
HARARE – Former City of Harare town clerk Tendai Mahachi was yesterday
denied bail and remanded in custody to December 6.
He faces allegations of criminal abuse of office after he allegedly
corruptly contracted Augur Investments to undertake the $80 million
Airport Road rehabilitation project.
Michael Mahachi was then Commission for the City of Harare chairperson.
Michael has since appeared in court over the same allegations and was also
remanded in custody.
Mahachi was not asked to plead when he appeared before Harare magistrate
Rumbidzai Mugwagwa who remanded him in custody to December 6, after the
State, led by Shepherd Makonde, opposed bail.
In denying Mahachi bail, Mugwagwa said there is possibility that he might
interfere with State witnesses and that he might abscond as there is
overwhelming evidence against him.
It is the State’s case that on May 21, 2008, the City of Harare entered
into a memorandum of agreement with Augur Investments, a foreign company
purportedly based in Ukraine.
Tendai and Michael allegedly signed the agreements on behalf of City of
Harare and Augur Investments, which was represented by Kenneth Sharpe and
The agreement, worth $80 million, was for the construction and upgrade of
Airport Road and was meant to be completed in 2010.
According to the agreement, the court heard Augur Investment was to fund
the project while the City of Harare was to cede land to the company in
lieu of the work done.
The court also heard title deeds were to be transferred to Augur
Investments and be held in trust by Messrs Coghlan Welsh and Guest law
firm pending transfer upon certification of work done.
In terms of the Urban Councils Act Chapter 29:15, procurement of service
providers is done in terms of sections 210 and 211 of the said Act.