Ex-NBS boss faces $80m fraud charges 

Source: Ex-NBS boss faces $80m fraud charges – DailyNews Live

Tarisai Machakaire     6 June 2018

HARARE – Contracts for the construction of an $80 million National
Building Society (NBS) housing project were allegedly fraudulently awarded
to land developers without the knowledge of the responsible authorities, a
court heard yesterday.

This was revealed before Harare magistrate Victoria Mashamba when former
NBS strategic executive assistant to the general manager Tirivavi James
Chiuta appeared in court over criminal abuse of office charges.

He was released on $100 bail and ordered to surrender his passport,
continue residing at his current address and report twice at the
Commercial Crimes Unit until the case is finalised.

Chiuta was represented by Lucky Mawuwa.

NBS, a unit of the National Social Security Authority (Nssa) with the
mandate to deliver low- cost housing units country wide, was represented
by its managing director, Lameck Danga.

Prosecutor Linda Gadzikwa alleged that sometime in September 2016, Nssa
and NBS convened a Strategic Planning Workshop whose resolutions included
the mandate given to the bank to deliver 10 000 low-cost housing units
countrywide by December 2017.

Nssa was to provide funding with a view to invest employee pensions as
well as empowering lowly remunerated citizens to own houses.

In pursuant to the resolution, NBS through its head of projects, Silas
Njodzi Mukono conducted road shows countrywide to identify potential
partners and 14 were identified.

The court heard that further due diligence by NBS shortlisted projects to
be carried out in Victoria Range, Masvingo, Denver Township, Bulawayo,
Mkoba Gwere, Dulibadzimu Phase 2, Beitbridge, Emgwanwini Phase 4 in
Bulawayo at the cost of $80 991 200.

It is alleged that Chiuta connived with Elizabeth Chitiga who is still at
large and hand-picked their own projects with an estimated cost of $78 827
500 without authority from the Procurement Authority of Zimbabwe (Praz).

The duo then allegedly directed NBS to implement the five projects (Harare
Dzivaresekwa, Mutare Chikanga Extension, Gweru Shopshire, Zvishavane Lot
834 and 835 and Marondera Elmswood) through an email dated August 24,
2017.

It was alleged that the five projects failed to pass the verification
process because of land ownership disputes.

N-Frays (Pvt) Ltd and Globeny Construction (Private) Limited land
developers who had been engaged also had land ownership disputes and had
to use NBS funds ($424 426 and $1,5 million) to settle the issues.

The two contractors have to date failed to fulfil their contractual
obligation and no houses have been delivered to NBS.

It was further alleged that Chiuta and his accomplices gave land
developers contracts without the knowledge of the land owners and exposed
public funds to abuse.