Harare – Former City of Harare (COH) bosses who are facing charges of $8 million Airport road fraud have appeared before a Harare Magistrate and had their trial date set.
The trio, Tendayi Mahachi, Michael Mahachi and Sekesai Makwavara will stand trial before Harare Magistrate Hoseah Mujaya on March 25.
Prosecutor, Zivanai Macharaga alleges that sometime in 2007, COH planned to construct and upgrade the airport road and on June 22 that year, Makwavara connived with who are already on remand for the same offense.
The trio is alleged to have corruptly contracted Augur investments to undertake the $80 million Airport Road rehabilitation project. Augur investments is owned by Michael Mahachi who was then chairperson of the Commission of the City of Harare.
It is further alleged 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.
The trio allegedly signed the agreements on behalf of City of Harare and Augur Investments was represented by Kenneth Sharpe and Olex and Sheremet.
The agreement, worth $80million, was for the construction and up grade of Airport Road and was meant to be completed in 2010.
According to the agreement, the court heard that 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 that title deeds were to be transferred to Augur Investments and be held in trust by Messrs Coghlan Welsh and Guest pending transfer upon certification of work done.
It is the State’s case that in terms of the Urban Councils Act Chapter29:15 procurement of service providers is done in terms of sections 210 and 211 of the said Act.
The trio corruptly appointed Augur Investments to undertake the upgrading of Airport Road without inviting competitive bids for the project.
Augur Investments was allegedly not registered in the country at the time and was only registered in 2010 after the contract expired.
It is alleged that Augur Investments did not complete the project as it did not have the capacity to handle the project of such magnitude.
Consequently, the City of Harare suffered prejudice of $80 million,the court heard.