The Infrastructure and Development Bank of Zimbabwe (IDBZ) has launched a probe against former senior manager Suckson Muswe for allegedly inflating the costs of a newly constructed student accommodation facility in Bulawayo, which may have prejudiced the State-owned bank.
Sources close to the matter allege that Muswe, formerly known as Suckson Makwasha, a key figure in the project’s development, used his “influential position in procurement processes” to significantly inflate the costs of materials and services during its construction.
The project was constructed to the tune of about US$17,5 million.
The extent of the potential financial loss is believed to be “substantial,” while the proceeds of the alleged fraud were allegedly used by Muswe to acquire at least 28 properties in Harare, Bulawayo, Gwanda and South Africa, sources have said.
Ongoing investigations aim to determine the full extent of the bank’s financial losses.
Preliminary findings suggest that Muswe may have colluded with subcontractors to submit inflated invoices for payment from which he then benefited.
When approached for comment, IDBZ chief communications officer, Mrs Priscillah Zvobgo, confirmed the matter.
However, she said that the bank was not yet in a position to provide further details as the matter remained under investigation.
“Due to an ongoing investigation, the bank is unable to release any additional information at this time,” said Mrs Zvobgo.
The student facility was commissioned by President Mnangagwa late last year.
The ongoing probe is part of the IDBZ’s efforts to ensure corporate governance and financial integrity.
Criminal charges have since been filed against Muswe and the b Gold holds gain as markets lock in rate cut from US Fed
ank is cooperating with relevant authorities as the investigation progresses.
The IDBZ operates with a core mandate to finance and facilitate the development of critical infrastructure projects across Zimbabwe, including housing, energy, and transportation.
The bank, which is a key player in the country’s national development strategy, seeks to partner with both public and private entities to bring these projects to fruition.
To develop and deliver the Bulawayo student accommodation facility, the IDBZ first purchased the land from a private owner who already had the designs but could not raise the money for implementation. To mobilise funding for the project, the bank then created an SPV called Zimcampus Properties Private Limited to implement, own and operate the complex.
As a deliberate strategy, anchored on playing a catalytic role and enabling IDBZ to work on several similar projects across the country, the baml deliberately diluted its shareholding to a minimum.
Thus, after the Bulawayo facility, the respective shareholding of the three private investors and the IDBZ stands as follows: IDBZ 7,67 percent, Motor Industry Pension Fund 19,44 percent, Old Mutual Life Assurance Company Zimbabwe Limited 49,37 percent and Zimnat 23,52 percent.
Through Zimcampus, the IDBZ secured funding commitment from Old Mutual, Zimnat and Motor Industry Pension Fund. There are also a number of nominees invested through Old Mutual and Zimnat.
Among them was the Public Service Commission Pension Fund, which contributed about US1,8 million by the time the project was completed.
-Zimpapers
