Controversial Byo cement plant deal collapses amid bribery scandal fallout
A CONTROVERSIAL lease for the establishment of a cement plant in Bulawayo has been cancelled after the awarded Chinese developer failed to finalise the lease signing process. The lease for land located at Umvumila Industrial Park, adjacent to the United College of Education (UCE), was awarded to Labenmon Investments (Private) Limited in October last year.
However, since its approval, the project has been mired in controversy, culminating in the arrest of two councillors — Deputy Mayor Edwin Ndlovu and Finance and Development Committee chairperson, Councillor Mpumelelo Moyo — by the Zimbabwe Anti-Corruption Commission in connection with an alleged bribery scandal.
In the latest development, the local authority has resolved to cancel the lease following the company’s failure to complete the signing process.
“The Director of Town Planning (Mr Wisdom Siziba) reported that this report sought to cancel the offer of industrial stands 15895 and 15896 Umvumila for Labenmon Investments (Pvt) Ltd after council on 2 October 2024 had resolved that stands 15895 and 15896 be leased out to Labenmon Investments for an initial period of five years subject to review.
“The applicant indicated that they would use the stand for industrial purposes, establishing a cement mixing plant, at a monthly rental of US$450 and US$700 respectively (exclusive of VAT). The applicant had accepted the offer but did not finalise the lease signing process. Several reminders were sent to the applicant to no avail. It was against this backdrop that the department wished to have the offer cancelled and the stand repossessed,” reads a council report.
Councillors subsequently endorsed the recommendation to repossess the stands during a full council meeting.
In the alleged bribery case, the Deputy Mayor was acquitted after a full trial, while Clr Moyo was found guilty and sentenced to 18 months’ imprisonment. Last month, he was granted US$200 bail by the High Court pending appeal.
It had been alleged that the duo demanded a US$20 000 bribe from Chinese investors, to be shared among councillors, as a token for facilitating the approval of 5.6 hectares of land for the cement mixing plant.
The company had initially applied for 10 hectares of land for the plant, but the application was turned down by Bulawayo City Council. The decision to award the firm also sparked internal tensions, with the council’s Business and Investment Committee chairperson, Councillor Mxolisi Mahlangu, threatening to resign from the Finance and Development Committee in protest.
Clr Mahlangu had been part of a council delegation that toured Dugongo Cement (Private) Limited in Maputo, Mozambique, which they were led to believe was owned by Labenmon. However, it later emerged that this was not true.
“As one of the council officials who had embarked on an observational visit to the cement mixing facility in Mozambique, he stated that the operations of the company they had visited were conducted in a good environment, modern equipment was being utilised, safe standards were being practised, and there were no hazardous emissions emanating from the cement factory.
“However, he raised concerns about the ownership of the company they had visited, noting that it was not affiliated with Labenmon Investments and there was no evidence attributing to that effect. Giving Labenmon Investments credit for an operation that was not theirs would prejudice council. He emphasised the importance of adhering to good corporate governance practices,” reads a council report. Herald
