Harare loses millions to landowners, developers

Source: The Herald – Breaking news.

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 Speaking during a full council meeting on Wednesday, council special subcommittee chairperson Denford Ngadziore said: “Council land measuring 50,5 hectares amounting to at least US$25 million due has been illegally subdivided, as found by this committee.

Remember Deketeke-Herald Correspondent

HARARE City Council lost US$25 million in endowment fees due to irregularities, including non-payment, underpayment, and misappropriation by landowners and developers between 2000 and 2023, a special investigation committee has found.

An endowment fee is a form of contribution from developers to the local council, intended to offset the costs of providing infrastructure and services to the new development, such as roads, water, and sewer connections.

Speaking during a full council meeting on Wednesday, council special subcommittee chairperson Denford Ngadziore said: “Council land measuring 50,5 hectares amounting to at least US$25 million due has been illegally subdivided, as found by this committee.

“Some stands have been illegally sold and housing construction is underway. Some have been decommissioned. Discrepancies over land paid to council endowment are discovered in Madokero, Southview, Fidelity, Prospect, Amalinda, among other areas. Some of the land for the State has not been transferred for nearly two decades”.

The payment of endowment fees by landowners and developers to local authorities is a critical aspect of urban planning and development.

“Such payments are a statutory requirement whenever a prescribed subdivision is issued in terms of section 41 of original Town Planning Act. These fees are intended to support the provision of public amenities and infrastructure, ensuring that new developments are sustainable and beneficial to the community,” said Clr Ngadziore.

The committee comprised four councillors, the town planner, a lawyer, civil engineer and the committee secretary.

“The special committee used a combination of investigative methods, which included searches, review, analysis of legislation provisions, council standard operating procedures, which is related to the endowment fees, approved subdivision diagrams, and payments between 2000 to 2023.

“Over the years, endowment has been paid in cash, kind or both. Where payments were made in cash, the monies are supposed to be deposited in the council department account, while a fee in the form land is supposed to be transferred into the city land bank. When such an endowment has been paid, all the other development conditions stipulated in the subdivision permit are met,” Clr Ngadziore said.

“Council through the aid of urban planning, issued the development permit. The land offered in the city-based payment of endowment includes open-caste, road-developer, institutional, residential, or industrial.

“In some cases, endowment has been paid in both kind or cash, with subdivision permits specified in the amount of land against the percentage payable in cash.

“Payment of endowment in cash mainly after 2016 will not be beneficial to the city due to the existing current distortion in debt.”