The Harare City Council has refused to answer questions about its partnership with Augur Investments OU that resulted in the creation of company that has been a recipient of vast tracts of land in the capital.
The questions sought to establish the circumstances in which the joint venture was established to form Sunshine Property Development.
Sunshine was formed in 2007 following a deal between council and Augur, a company owned by businessman Ken Sharpe.
Under the agreement, Augur controls 70% of shares and was supposed to provide capital for Sunshine’s operations.
Council, on the other hand, was supposed to provide land for developmental projects and control 30% shareholding.
Using the agreement, the council has transferred vast tracts of land to Sunshine.
Some of the land transferred to Sunshine now forms the assets listed on the Victoria Falls Stock Exchange by West Properties Limited (WestProp), a company controlled by Sharpe.
This publication submitted a request for information to council in line with the Freedom of Information Act, but the local authority refused to answer any of the 25 questions , claiming the information requested was a subject of court processes.
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“I acknowledge the receipt of your request and the contents thereof are duly noted,” part of the response by one W Chiwawa, on behalf of the chamber secretary dated July 5 read.
“However, please be advised that the information you required is part of an ongoing court process and as such, I cannot share same with you at the moment.”
Chiwawa did not list the court cases.
A search at the courts showed that there were no pending cases involving Sunshine and council.
In its request, The Standard had asked for a copy of documents setting up the joint venture, copies of any minutes, resolutions or other documents from council or its committees nominating directors to any board of Sunshine from the formation of the company until May 1 2023.
There was also a request for confirmation of the amount of money paid, including copies of receipts, by Sunshine servicing a loan of US$3 140 306 extended to it by the City of Harare in respect to Stand 8113 Warren Park Township, a piece of land measuring 80,5039 hectares in Harare now known as Warren Hills.
Copies of any minutes, resolutions or other documents and memoranda from council authorising the extension of the unsecured loan of US$3 140 306 for no security and no fixed term to Sunshine were also part of the information requested as well as copies of any newspaper advertisements of the sale or proposed disposal of the Warren Hills before its being transferred to Sunshine.
Council could also not provide copies of any minutes, resolutions or other documents by the local authority authorising the change of use of the Warren Hills Golf Club from recreational to residential and copies of any minutes, resolutions or other documents authorising the purchase price of US$50 000 for Warren Hills as well as receipts to prove the purchase.
Copies of the shareholders' agreement between council and Augur Investments OU and documents authorising the signatories to the memorandum of agreement and shareholders agreement with Augur to sign the agreement could also not be availed.
There was also a request for evidence that council carried out some due diligence checks on Augur Investments OU (Ukraine) to confirm that such an entity did exist or confirmation that no such checks were carried out.
There was also a request for proof that Augur provided funding for the project to the tune of between US$20 million and US$30 million before the transfer of the Warren Hills to Sunshine.
Also requested was evidence in the form of any document authorising the donation of 47 hectares of land adjacent to Warren Hills that was handed over to Sunshine.
This publication also sought documentation that shows council’s shareholding in Sunshine and how the municipality’s loan to Sunshine is being serviced given the winding up or deletion of Augur and the subsequent substitution of WestProp as the apparent owner of the Warren Hills property or new joint venture partner in Sunshine.
None of the information is subject to any court case involving council, which could be the reason why no court case was cited.
