HARARE - Businessman-cum musician Energy Mutodi contributed to the collapse of housing projects by pocketing money receipted into National Housing Development Trust (NHDT) by desperate home seekers, a Harare magistrate heard yesterday.
Mutodi is answering charges of swindling home-seekers of $588 787 in failed housing development schemes.
He is jointly charged with Boniface Chikono, a trustee in the National Housing and Development Trust.
During trial before magistrate Hosea Mujaya, Chandafira Pasipamire, who held several managerial positions before being appointed projects manager for NHDT, testified how Mutodi siphoned money deposited by clients for housing development.
He said Mutodi was the sole signatory to the trust’s account and that most of their clients were civil servants.
“My duties included communicating with land sellers before seeking approval for transactions from the chief executive officer, Mutodi,” Pasipamire said.
“We had a data base of clients who wanted areas in low, medium and high density surburbs and most of them were civil servants.
“We would ask them to top up the money in Salary Service Bureau for development of a project.”
Pasipamire said Mutodi caused the collapse of Crowhill, Chizhanje, Gimboki and Caledonia projects after allegedly converting the trust’s money to personal use.
“We attained Crowhill area from Msipa after Mutodi had deposited $20 000 in 2009.
“Mutodi made clients deposit $100 per month because it was a low density suburb,” Pasipamire testified.
“Mutodi took all the money which was receipted and paid in by individuals. The project collapsed because we subsequently failed to fully pay Msipa. We only managed to get stands which were equivalent to $20 000.”
He said the Chizhanje project did not take off because Mutodi had accounted for only $130 000 of the $1 million that had been receipted.
Pasipamire testified that he was brushed off by Mutodi after he had queried misuse of funds in the Caledonia projects.
“There was no paperwork and money was paid and misappropriated. When I enquired with officials as to how much had been paid into the project, I was told it was $345 000,” he said.
“However, asking Mutodi did not help much because he responded that I was not the auditor but a mere projects manager.”
He said NHDT had to close most of its offices across the country because of outstanding rentals and salaries.
Mutodi and Chikono deny the fraud charge and are represented by Charles Chinyama, Freddy Machokoto and Ray Tsvakwi.
The flamboyant musician is said to have lured over 16 000 civil servants to join and contribute to the housing trust.
Deduction orders were given to the SSB to subtract certain amounts of money on a monthly basis from civil servants who had joined the trust.
It is alleged that sometime in 2007, Mutodi changed the account signing arrangement, and made himself the sole signatory.
He allegedly signed for all the transactions.
At least $588 787 was paid in by the complainants and, contrary to his promises, allegedly withdrew all the money and converted it to his own use.