Home-seekers duped of $1m

via Home-seekers duped of $1m | The Herald July 7, 2015 by Sophia Chese

AT least 1 300 home-seekers from Budiriro’s Ngungunyana Housing Cooperative lost more than $1 million in the past five years to the management committee, an audit released at the weekend revealed.

The audit was conducted by Mr Livingstone Magede of Oppermec Business Services Pvt Ltd.

It was presented to members during the housing cooperative’s annual general meeting on Sunday.

It accused, the Mr Tikho Sibanda-led committee of feasting on members’ subscriptions through receipt forgery, buying luxuries among other dealings.

“It was noted that the management received cash from replacement fees and these were not banked. However, we did not have information as how these funds were utilised from general minutes,” reads part of the audit report.

Documents in possession of The Herald showed that over $400 000 meant for allocation and replacement fees for stands was diverted for personal use, while $132 839 was siphoned as petty cash to cover various expenses.

The audit revealed that there was no evidence that the allowances were approved.

“We did not have any evidence that these allowances were approved by a general meeting as outlined in the By Law Section 51 (1),” he said.

It was also established that the management made payments of more than $500 000 to a company called Egorock Investments, but there was no contract that was signed between the cooperative and the firm.

“We did not get contracts of agreement between the cooperative and Egorock Investments, that is the memorandum of agreement or any contract made between the management and the service provider,” the audit revealed.

“A contract would state the terms and conditions each party should follow and remedies of any breach.”

The audit concluded that management was not following the provisions of the Co-operative Societies Act Chapter 24:05 and Housing Co-operative By Laws.

“There was no evidence that the management were running the co-operative with an approved budget as defined also by Section 57 (2).”

The cooperative is now under an interim leadership led by Mr Luke Chesango and the misappropriation of funds by the previous executive has been reported to the CID serious fraud under case number DR53/06/13.

COMMENTS

WORDPRESS: 4
  • comment-avatar
    grabmore 6 years ago

    Everyone has been duped, not just home seekers.

  • comment-avatar
    R Judd 6 years ago

    Housing co-operative? You put your money into something like this please do not bore us with your complaints about losing your money. Even a fool should know better

  • comment-avatar
    El-Dodo 6 years ago

    Sally Mugabe housing coop was not affected by murambatsvina but the least developed. Management committees refuse change from the onset. WHY? They are busy deepening their pockets @ the expense of developement. The executive MASQUARADES AS ZANUPF AND WARVETS to scare poor members. Theft @ NGUNGUNTANI is a drop in the ocean compared to SALLY. PLIZ minister hand us over to local authorities. They is poor urban planning; no schools, no clinic,no shoping center,no churches and recreatioal facilities. Majority of stands have more than one owner. STOP IT.

  • comment-avatar
    Homeseeker 6 years ago

    Co-operative leaders countrywide are living large on poor homeseekers’ contibutions that they are looting. The govt Ministers concerned must take urgent action. We encountered cases at Negidi Co-operative where leaders force members to contract them for drawing housing Plans, buying building materials, construct houses, inspect houses. Any member who obejects faces hurdles and he/she ends up failing to complete constuction. As a result, they remain lodgers. Will govt please eliminate these greedy sharks.