$15m at stake as family, land developer cross swords
A GWERU family is up in arms against a private land developer, amid fears it could have lost over $15 million from the sale of residential stands on its farm.
The Maseko family, which owns Brooklands Farm on the outskirts of Gweru, entered into a land development agreement with Divine Aid Trust Company of Zimbabwe trading as Datco Group, to develop the farm into urban residential stands for sale to the public.
The deal allegedly went sour after Datco refused to furnish the family with essential information on the progress of the deal for accountability.
Now, the family has turned to the High Court for intervention after it failed to get information regarding the number of stands sold, prices at which the stands were sold and proof of expenses and disbursements the company has incurred.
In its application for mandatory interdict, the family listed Datco and the company’s four trustees - E. N. Tombe, Brighton Manengureni, Richard Chitumba and C.L.V. Matyatya -as respondents.
Mr Sizani Maseko, who initiated the court action, wants an order stopping Datco from selling any stands under subdivision of Brooklands Farm measuring 99,9014 hectares held under Deed of Transfer No. 4648/90 until they have furnished all the information requested.
In his founding affidavit, Mr Maseko accused Datco of acting in bad faith.
“I held various meetings with second and third respondents but no information was ever provided,” said Mr Maseko. “I needed the information to ascertain the amount that is due to my siblings and I from the stands sold as per the agreement.”
The agreement stated that Datco and the family “shall share equally the net proceeds of each stand sold after deduction of expenses and disbursements”.
According to the subdivision permit, there are 1 394 stands, which Datco is said to have sold at an average price of $12 250.
This, Mr Maseko said, translated to over $15 million.
“It is clear that I and the other beneficiaries are suffering serious financial prejudice due to lack of information on the stands sold and the prices for such sales,” he said.
Mr Maseko said he was suffering further prejudice because he has no information on whether or not the land development project was proceeding in terms of the law.
He said there would be serious prejudice if the land development project was not in compliance with the conditions set out in the subdivision permit.
“This may result in the project being condemned when people would have already bought stands and built houses,” he said.
Mr Manengureni, who is also Datco managing director, has since filed opposing papers at the High Court.
He argued that it was premature and frivolous for Mr Maseko to bring such an application when the project was yet to be completed.
“It (application) is premised on a total lack of understanding by the applicants of the terms and conditions of the agreement,” said Mr Manengureni.
At this stage, Mr Manengureni said, the only duty that rests on Datco was for the maintenance of proper books of accounts and records of all reimbursable expenses, which information the Maseko family would eventually be given at the appropriate time.
“The information shall be availed in due course when the wheel of the contract has run its full cycle as per the agreement,” said Mr Manengureni.
He queried how technical information on compliance with permits would benefit the family.
“In any event, there is no legal or factual basis for the applicants to claim non-compliance with the permit as all the certifications thus far obtained by the respondents have been availed to them,” he said.
“The permit itself was issued in their names, hence they do not even need my consent to access them. They are at liberty to approach the relevant municipality and other such related offices.”
Mr Manengureni said the Maseko family could not successfully allege and prove any prejudice at this stage.
Mr Maseko is being represented by Dube, Manikai and Hwacha law firm, while Messrs Kadzere, Hungwe and Mandevere Legal Practitioners are acting for Datco.