Harare Blows US$1.4 Million On Non-Existent Property
In a shocking revelation, a forensic audit dated August 11, 2023, has uncovered significant financial mismanagement within the Harare Municipal Medical Aid Society (HMMAS). The audit report indicates that HMMAS purchased a US$1.4 million property but never took possession of it. Instead, the property was later sold under unclear circumstances, and the municipality did not recover its funds.
The audit exposed multiple anomalies, including overpricing and double payment of a property in Ruwa, resulting in a further US$1.2 million loss. Additionally, properties were acquired without obtaining title deeds, complicating efforts to trace these assets.
The report highlights alarming financial discrepancies, including a former CEO personally collecting subscription payments worth US$246,500, which were never recorded by the cashier. The audit also revealed questionable conveyancing fees of US$300,000—far exceeding standard rates—during the property transactions.
The property in question was initially purchased from Everleigh Services Private Limited through AfrAsia Bank in 2015. Despite the full payment, HMMAS never took ownership, and the property was subsequently sold to Cheetah Express Logistics Private Limited in 2018, resulting in a total loss of US$1.7 million.
Further irregularities include a staggering overpayment of US$550,000 for equipment valued at just US$100,000 during the purchase of Fortress Hospital. The audit exposes significant financial prejudice and raises serious concerns about accountability and governance within HMMAS.
The unfolding scandal has prompted calls for a thorough investigation to hold those responsible accountable and recover the lost funds.