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ED Could Force NSSA To Reverse House Deal For Minister Mavima

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ED Could Force NSSA To Reverse House Deal For Minister Mavima

President Emmerson Mnangagwa could force the National Social Security Authority (NSSA) to reverse a US$400 000 house purchase deal in Quinnington, Borrowdale, Harare, involving Public Service minister Paul Mavima.

NSSA acting general manager, Charles Shava, was summoned to Mnangagwa and Vice President Chiwenga’s offices last week Monday to explain what was happening.

Shava was asked to write a report on the purchase of the house which NSSA eventually sold to Mavima. That was before he was arrested later in the week — on Thursday — on allegations of fraud. 

The NewsHawks was told by anonymous sources in the Office of the President and Cabinet that Shava could be forced to reverse the deal. The source was quoted as saying:

The issue is now being handled by Chief Secretary in the Office of the President and Cabinet, Misheck Sibanda. There is mounting pressure for urgent action to be taken. Shava might be brought to book or forced to reverse the deal, which is likely.

These events were before Shava was arrested on allegations of fraud involving US$12.2 million. His arrest for allegedly giving doctors allowances without board approval was seen as a fightback by the minister.

Shava was picked up by the Zimbabwe Anti-Corruption Commission a day before a disciplinary hearing for NSSA director Brian Mrewa.

Mrewa, NSSA’s suspended director for investments and properties, helped Mavima in his Borrowdale house deal. He was the one who facilitated everything on that.

Through his legal advisers, Shava has described the allegations as baseless and unfounded. However, his accusers say he has to clear his name before the courts if he is innocent as he pleads.

The Borrowdale House saga:

i). It is alleged that NSSA bought Borrowdale house secretly on behalf of Mavima.

ii). Due process and board approvals to buy the Quinnington house, Stand No. 218 Lot A1, were not followed.

iii). The property was valued at US$350 000, but US$400 000 was paid by NSSA, creating room for US$50 000 to go into private pockets. The transaction was executed on 3 October 2022.

iv). The house was not transferred to NSSA books before it was sold to Mavima.

v). The house was registered under a special purpose vehicle, Angvo Investments (Pvt) Ltd and the deeds were under CABS custodial services, not CBZ Custodial Services who are the custodians of NSSA assets bought through asset management firms.

vi). Minister Mavima allegedly initiated the deal as he identified the property which belonged to one Seremane and asked NSSA to buy and keep it for him while he awaited the disbursement of his US$500 000 housing allowance given to each cabinet minister by the government.

vii). The issue came to light when Shava directed NSSA deputy director (audit) Andrew Nyakonda on 16 February to conduct an investigation into the disposal of the Borrowdale house and the purchase of Kariba Lodge, Stand No. 989 Kariba Township, for US$244 000.

Kariba commercial property:

a). The commercial property was bought for US$215 000 after negotiations, but US$244 000 was paid. 

b). When other costs were added, the price went up to US$252 631.59.

c). Since NSSA usually pays round figures, US$300 000 was paid. The balance was purportedly directed to its investment account held at the asset management firm which facilitated the deal.

When the deals were reported in the media, Mrewa skipped the border into South Africa.

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