eBusiness Weekly
Golden Sibanda
The Zimbabwe Anti-Corruption Commission (ZACC) has initiated processes to arrest Harare businessman and Pacific Cigarette Company founder, Adam Molai, over allegations he fraudulently received $16 million from the National Social Security Authority (NSSA) in a dodgy housing project.
This comes as NSSA’s chief property investment officer, Kurauwone Chihota, who is already being prosecuted over the role he allegedly played in the same suspected housing development project scam, was awarded $1 000 bail by a Harare magistrate earlier this week.
President Mnangagwa’s administration has declared zero tolerance on corruption and warned all those found guilty of corrupt conduct that they face the grim prospect of life behind bars. Former Energy and Power Development Minister Samuel Undenge, is already languishing in prison after being jailed for four over a corruption case.
Molai’s lawyer, Addington Chinake told Business Weekly yesterday that an enquiry into the conduct of Molai by ZACC had been going on for the past seven weeks and that they have been working with the anti graft body and police officers in terms of the “normal due process” of resolving such kind of issues.
Chinake said: “It is not true that he is wanted by ZACC or that he is on the run. We are in touch with police daily in connection with the investigation and following normal due process.”
But ZACC chief executive Goodson Nguni, indicated this week that the anti-corruption commission had sought and secured requisite authority to seek the arrest and prosecution of the maverick Harare businessman amid indications that Molai could be picked up by police officers to assist with investigations at any time in connection with the $16 million he got from NSSA.
Sources also said other former directors of NSSA, especially its ex-chairperson Robin Vela, and those of the property development company closely linked or owned
by Molai could also be in line for possible prosecution.
“We want Adam Molai together with his financial director (and others) arrested. We have already made an application, but no arrest could be immediately effected, as the police were overwhelmed at that moment. As things stand, Molai has also not yet been located,” Nguni said.
The accusations against Molai stem from allegations that his company entered into a deal with NSSA in which the state pensions institution had set a target to deliver 8 000 houses, which saw the insurance firm’s Chihota allegedly conniving with the then board chairman, Robin Vela, Molai, one Stephen Duggan and Alec Nyatanga, who are the directors of Housing Corporation Zimbabwe (HCZ), owned by Molai and allegedly defrauded NSSA.
Evidence already adduced in the court, as reported by our sister paper The Herald, during prosecution of the NSSA director (Kurauwone Chihota) indicates that Molai presented a proposal to NSSA under his Mauritian based company Housing Africa Corporation (HAC) for the construction of the houses.
Molai allegedly proceeded to register a local company, HCZ, only a few days after the businessman was awarded the multimillion dollar housing contract by NSSA. Vela reportedly directed Chihota to consider the proposal, which the State pensions authority’s chief property investment officer, allegedly without carrying out any due diligence and working with other directors of Molai’s firm, recommended HCZ to the board for the $16 million project.
Molai (44), is an entrepreneur with wide-ranging experience in management consulting, retail, tobacco, property development, foundries, mining, fuel, lubricants, beverages, insurance and general manufacturing, who is chair and founder of Zimbabwe’s fastest growing tobacco company.
The businessman served articles with Ernst and Young in Zimbabwe, before proceeding to the University of Buckingham in the UK where he studied business management. He holds degrees in Business Studies and Commerce from the University of Buckingham in England and Lakehead University in Ontario, Canada.
