Ken Sharpe’s Sunshine Development Dubious Joint Venture Challenged

By Senior Court Reporter
HARARE – A joint venture company formed between the City of Harare and controversial businessman Kenneth Raydon Sharpe has come under microscope at the High Court.
The Zimbabwe Homeless People Federation (ZHPF) is challenging the agreement as it works to the advantage of Augur Investments.
In an application filed at the High Court, ZHPF is seeking cancellation of the Deeds of transfers of the land to Sunshine Development Private Limited, a phony JVC formed by former City of Harare and Augur Investments at a 30-70 agreement in favor of the latter.
“On the 22nd of June 2007, 1st Respondent (Harare City Council), represented by its Town Clerk Tendayi Mahachi and the Chairperson of the Commission that was then running it, Sekesai Makwavarara entered into a Memorandum of Understanding with the 2nd Respondent, then referred to in those papers as Augur Limited (clearly a non-existent company).
“The parties agreed they would form a Joint Venture Company (JVC) with the intention that it would build middle income houses and a hotel at Warren Hills Golf Course area, develop a commercial centre at Hopley and Mukuvisi phase one incorporating Airport Road,” reads part of the application.
The court heard Sunshine Development has not paid any money towards the land but has instead been selling the stands at an inflated price against the purported agreements of the JVC. Under the agreement Sunshine Development was to inject US$30 million into the project.
Zimbabwe Homeless People Federation argues that Sunshine Development has been allocating the land that needs to be developed.
“More than that, instead of developing the land, Sunshine Development Private Limited will effectively become a land baron selling and allocating part of the property that ought to be developed,” read court papers.
The court papers indicate that in terms of the agreement a total of 99 417 hectares of land would be transferred to Sunshine Development however, 239 3823 hectares worth US$45 428 910 have been transferred.
The land transferred include stand 8112 Warren Park Township measuring 22 3033 hectares and 8113 (Warren Hills Golf Course) measuring 80 503 hectares.
The Federation argues that those who signed and executed the Memorandum of Agreement and the Shareholders agreement had no authority to do so from the City of Harare.

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