Tycoon’s assets to be forfeited over US$11,8m tenders

Source: Tycoon’s assets to be forfeited over US$11,8m tenders | The Sunday Mail

Nyore Madzianike

THE National Prosecuting Authority of Zimbabwe (NPAZ) has applied to the High Court seeking an order to forfeit properties that include houses and residential stands valued at millions of dollars belonging to the estate of late businessman Dr Nkululeko Sibanda, alleging they were acquired through proceeds of crime.

Dr Sibanda, widely known as “Twalumba” in business and social circles, is accused of amassing wealth through irregular tenders for road rehabilitation.

He reportedly siphoned around $11,8 million from the Government.

The late businessman and former Zimbabwe National Road Administration (Zinara) chief executive officer Mr Frank Chitukutuku allegedly connived to award contracts to the former’s companies.

The NPAZ has already seized several properties belonging to Mr Chitukutuku, including two upmarket houses and luxury vehicles, after the High Court ruled that they were tainted properties.

The Prosecutor-General’s Office, represented by chief law officer Mr Chris Mutangadura, contends that Dr Sibanda’s companies  — Notify Enterprises, Twalumba Civil, Transtar Enterprises and Arttechards Enterprises — received payments for non-existent or incomplete contracts.

Notify Enterprises, Twalumba Civil, Transtar Enterprises and Arttechards Enterprises, the Master of the High Court and Dr Sibanda’s widow Miriam were cited as respondents.

“Through the illegal transactions and working in connivance with Zinara chief executive officer, the first, second, third and fourth respondents caused actual prejudice to Zinara amounting to US$11 804 975,39,” reads the application.

“This was done through receiving payments for non-existent contracts, non-authorisation for upward variation of the value of the contracts, non-completion of the work of regravelling, constructing roads and bridges, and rehabilitation and surfacing of roads for the stated local authorities.

“During the period extending from 2009 to 2018, the companies and directors Miriam Sibanda and the late Nkululeko Sibanda acquired several immovable properties through illegal activities (after) being awarded contracts with the local authorities to construct roads and bridges.”

It is further alleged that Dr Sibanda, as one of the directors of first, second, third and fourth respondents, worked in connivance with Mr Chitukutuku to influence contracts awarded to these companies as contractors to local authorities for the rehabilitation of roads and construction of bridges.

“Investigations carried out at the Master of the High Court established that the immovable properties for the estate of the late Nkululeko Sibanda were valued at US$1 165 000, as per evaluation carried out in 2015.”

NPAZ believes, through connivance with Mr Chitukutuku, Zinara engineer Givemore Kufa, finance manager Thomas Mutizhe and then-Umguza Rural District Council chief executive Collen Moyo, Dr Sibanda’s Notify Enterprises siphoned more than US$3 million from the road authority.

The company was awarded a US$2 million tender to regravel a 31-kilometre stretch of llitshe Road that links Umguza and Bubi in Matabeleland North province.

The project also involved constructing a bridge across Umguza River, along the same road.

At a later stage, Mr Patson Mlilo, who was Bubi Rural District Council chief executive officer, reportedly joined the “syndicate”, since his local authority was to benefit from the same project, and helped award a US$1,6 million tender to Dr Sibanda’s company.

Despite receiving payments, no significant work was completed, and Zinara was allegedly prejudiced of US$3,2 million.

In another instance, in 2011, Twalumba Civil was awarded US$1,5 million to construct 40km of a road in the Bindura central business district but completed only 10 percent of the work.

Zinara paid US$1 488 501 for the project.

During the same year, Zinara also awarded Twalumba Civil a contract for the Pote Bridge and Mumurwi Road project valued at US$4,3 million.

However, the company only completed 45 percent of the work, despite receiving US$2,4 million.

A Grant Thornton audit uncovered the discrepancies, further implicating the late businessman in fraudulent activities.

Dr Sibanda is also accused of using Arttechards Enterprises to bill Zinara of US$184 000 after failing to complete rehabilitation of other roads in Binga.

The court application lists several other instances where Dr Sibanda’s firms were allegedly paid for incomplete or non-existent work.

The NPAZ claims funds from these projects were used to purchase numerous properties in and around Harare.

These assets include residential stands in Goromonzi and Ruwa, as well as upmarket properties in Borrowdale, Highlands, Eastlea and Belvedere. Some properties, however, do not have title deeds, raising further questions about their legality.

The estate also holds shares worth US$155 000 in a piece of land in Goromonzi.