NSSA officer gets bail in $16m scam

NATIONAL Social Security Authority chief property investment officer Kurauwone Chihota (46), who is facing fraud charges involving $16 million in a suspected property scam, was yesterday granted $1 000 bail by a Harare magistrate.

The court heard that NSSA set a target to deliver 8 000 houses, and Chihota (46) allegedly connived with the then NSSA board chairman, Robin Vela, businessman Adam Molai, Stephen Duggan and Alec Nyatanga, directors of Housing Corporation Zimbabwe (HCZ), and hatched a plan to defraud NSSA.

Molai, the court heard, then presented a proposal to NSSA called Housing Africa Corporation (HAC) for the construction of the houses.

Vela passed on the proposal to Chihota for consideration and processing.

It is the State’s case that Chihota, without carrying out due diligence and in connivance with his alleged accomplices, recommended HAC to the board for the $16 million project.

Chihota initially appeared in court on Friday last week, and was remanded in custody to today for bail ruling.

Magistrate Mr Milton Serima ruled that he was innocent until proven guilty, but ruled out fears by the State that he was a flight risk.

Apart from the $1 000 bail, Mr Serima ordered Chihota to surrender his passport and report twice a week to the police.

Chihota was being represented by Mr Tafadzwa Hungwe.

According to the State, sometime in 2016, NSSA set a target to deliver $8 000 housing units.

In May last year, Chihota, acting in common purpose with Vela, Molai, Duggan and Nyatanga hatched a plan to defraud NSSA of $16 million.

Upon receiving the proposal made by Molai, Chihota, without carrying out due diligence on the origin and status of HAC, recommended the project to the board.

HAC is purported to be a foreign company domiciled in Mauritius and is allegedly owned by Molai.

On June 30, Chihota and Vela, fully aware that the trio had no capacity to construct the houses, misrepresented to other board members that the said company had the capacity.

Acting on the misrepresentation, the board then passed a resolution to award the contract to Molai’s company.

To cover their tracks, the trio formed a company called Housing Corporation Zimbabwe (HCZ) three days after they were awarded the contract.

The parties then arranged that HCZ was to initially construct 250 units at a purchase price of $38 000 and an off-take deposit of $16 million, which was to be paid by NSSA.

Only 53 houses were constructed instead of 250.