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Fungai Lupande Court Reporter—

A director with a real estate company appeared in court yesterday for allegedly swindling a home-seeker of Z$5 billion (US$1,6 million at the then exchange rate) in a botched deal for land for residential stands in 2008.

Luke Moyana, who is the director of Zimbard (Pvt) Ltd, was jointly charged with his company for fraud and was remanded by Harare magistrate Ms Rumbidzai Mugwagwa to February 8 on $100 bail.

The complainant in the case is Paul Madziwa.

Prosecuting, Ms Audrey Chogumaira alleged that in early 2008, Kadoma City Council entered into an agreement with Moyana over a piece of land due for development into 81 low-density residential stands.

The council agreed to acquire two diesel trucks from Moyana’s company and in turn give him 61 stands in a barter deal.

It was agreed that Moyana would sell the residential stands after being issued with a certificate of compliance by the council. But he started selling the stands through Southbay Real Estate without servicing them.

Madziwa was interested and contacted Moyana, who advised that the area was a new low-density suburb called Golden Villa Valleys. Madziwa became interested and visited the site.

It is alleged that Madziwa bought stand number 6253 measuring 1 905 square metres for Z$50 billion which was equivalent to US$1 666 666,67 according to a Reserve Bank of Zimbabwe confirmation certificate.

The money was deposited into Southbay Real Estate trust account with ZABG Bank. Madziwa was given an agreement of sale confirming that transfer of the property into his name would be done within 14 days.

The stand was later repossessed by Kadoma City Council and Madziwa lost over $1,6 million and nothing was recovered.