Zimbabwe News and Internet Radio

Chiyangwa loses hotel stand

By George Maponga in Masvingo

Flamboyant businessman and Zvimba South National Assembly member Mr Phillip Chiyangwa has lost a commercial stand where he intended to build a multi-million dollar hotel in Masvingo City after he failed to develop it within the specified time.

Phillip Chiyangwa
Phillip Chiyangwa

The stand, straddling 1,9 hectares in the plush Zimre Park suburb was bought by the businessman in 2008 through his company Pinnacle Property Holdings.

The businessman is fighting to retain the stand and has since taken Masvingo City Council to the High Court seeking an order to be declared its legal owner.

He bought the stand for Z$150 billion with the intention of building a hotel under his Pinnacle Property Holdings banner.

The businessman, who was also Zifa president then, allegedly failed to develop the stand as per the agreement of sale, prompting council to repossess it.

A full council meeting which sat on Monday this week passed a resolution to repossess the commercial stand from Mr Chiyangwa over his failure to build the hotel.

Council recommended that the stand be subjected to valuation to establish its current value. Mayor Collins Maboke on Wednesday said Mr Chiyangwa failed to build a hotel as agreed, prompting council to repossess the stand.

He said according to the agreement of sale between Mr Chiyangwa and council the latter will be paid 10 percent of the money he paid to buy the stand. Mr Chiyangwa wants the High Court to grant him a declaratory order confirming him as the legal owner of the stand.

He is among other things arguing that he paid the full purchase price for the stand, hence he is the rightful owner.

In response, council is arguing that according to the parties’ agreement of sale, Mr Chiyangwa was supposed to start developments on the stand within 18 months from the date of sealing the agreement, but never did anything on the ground up to this day.

The matter is still pending at the High Court.

Council intends to also approach the Reserve Bank of Zimbabwe for assistance in determining the current value of the Z$150 billion paid by Mr Chiyangwa to enable the local authority to pay him 10 percent of the original purchase price due to him since he defaulted on their agreement.

Town Clerk Mr Adolph Gusha refused to comment on the issue.

“As you are aware that matter is now before the courts so its subjudice, I cannot say anything until the matter is finalised by the courts,” said Mr Gusha.

Council is planning to repossess undeveloped residential and commercial stands in Masvingo for possible reallocation to land seekers with the wherewithal to develop them. The Herald