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Innocent Ruwende Senior Reporter
Harare City Council has resolved to refer all deals signed between the city and Augur Investments to the Zimbabwe Anti-Corruption Commission (ZACC) after councillors raised concern over the approval of development plans of some of the company’s projects prior to compliance with other requisite processes.

The firm has filed lawsuits worth millions of dollars against council for breach of contracts.

At a recent council meeting, councillors were concerned on how some of the company’s projects were approved even after termination of contracts.

According to recent minutes of the Business Committee, town clerk Engineer Hosiah Chisango gave an update on the court cases involving the city and Augur Investments.

“Following City of Harare’s termination of its contract, Augur Investments claimed from council payment in the sum of $68 320 000 by way of damages. The resultant dispute was referred to arbitration,” reads the minutes.

“The arbitrator Justice (November) Mtshiya awarded Augur $15 063 693 together with interest thereon from the date of award to the date of payment. Council applied to High Court to have aforesaid arbitral award set aside.”

The matter was heard and is awaiting judgment.

In another case following a dispute between the two parties in respect of Sunshine Developments, Augur claimed $94 189 905 as damages in breach of contract and the case was referred to Mr Dave Whatman for arbitration who dismissed the case on the basis that it had been prescribed.

The arbitrator recommended that the parties resolve their disputes through mediation, after failing to agree council applied for liquidation of Sunshine Developments and the two parties are now awaiting consideration.

In another case, Augur sued council for $3 042 498 which it claimed to be the balance due to it for the construction of Airport Road up to the date the contract was terminated by council.

In response, council claimed to have paid Augur $1 205 000, but failed to furnish its external lawyers with proof of payment.

The matter was removed from the Pre-trial Conference Court roll as the issues being raised in the matter are similar to issues being dealt with in another case.

“Council intended to lay criminal charges against the culprits behind developments at Tariro Township (Mbudzi) but it was abandoned after it was discovered that the plans and development had been approved.”

The Business committee discussed the matter expressing concern on the approval of the plans and development at Tariro Township when other formalities had not been concluded.

The committee also noted with concern that the scenario was prevalent in other developments and it was the committee’s view that the matter be referred to the Audit Committee to establish what transpired.

After the matter was discussed at full council it was resolved that all Augur deals with council be referred to the Anti-Corruption Commission.