THE Mining Industry Pension Fund (MIPF) could have prejudiced pensioners’ of their contributions by the sale of its property investment, St Andrews House in Harare, at half the market price to Associated Mine Workers Union (Amwu) in 2001, The Zimbabwe Independent can reveal.
According to a forensic report of investigations by a local audit company, Five WH Corporate Services (Pvt) Ltd into the affairs of the fund, St Andrews House, a four-storey building which had a market value of Z$15 million in 2001 was sold for only Z$8 million to Amwu.
Forensic investigations revealed that while the building was sold for Z$8 million a price of Z$13 million was quoted in an application for a loan from Beverly Building Society which provided the mortgage to Amwu.
Sources said only Z$8 million was paid to the MIPF as a full and final settlement for the property through the mortgage facility despite a Memorandum of Agreement between MIPF and Amwu which stated “the purchase price of the property shall be in the sum of Z$13 000 000 (thirteen million Zimbabwe dollars only) payable in full upon transfer of the property”.
The investigation report also stated that Beverly Building Society provided a mortgage facility to Amwu based on allegedly fraudulent documents while Amwu later resold the building at a profit.
The fraudulent dealings are a cause for concern to pensioners, the report says.