FLOAAI directors discharged as magistrate says Buffalo Range dispute is contractual

FLOAAI directors discharged as magistrate says Buffalo Range dispute is contractual

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Two directors of Full Life Open Arms Africa Investment (FLOAAI) Housing Trust, Pastor Godfrey Nelson Madanyaya and Dr Andrew Chigudu, were discharged from fraud charges on June 5, 2026 after Masvingo Regional Magistrate Innocent Bepura ruled that the State had failed to establish a prima facie case.

The pair had been facing allegations linked to the Buffalo Range Town Expansion project in Chiredzi. Prosecutors alleged that about 1,700 residential stands were used as collateral to secure a US$1.2 million loan from NMB Bank, and that funds said to be earmarked for feasibility studies were diverted for personal use.

But after hearing evidence from six State witnesses, including officials from Chiredzi Town Council and Chiredzi Rural District Council, Magistrate Bepura ruled that the essential elements of fraud had not been proved and that the facts presented pointed to a dispute that should be dealt with in the civil courts.

“The State failed to make out a prima facie case against the accused persons. The facts placed before this court disclose a contractual dispute, which is a matter for determination by a civil court. The essential elements of fraud have not been established, and the accused are therefore discharged at the close of the State case,” Bepura said.

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Court papers outlined that the project dates back more than a decade. In 2015, the Ministry of Lands, Agriculture, Water and Fisheries offered Chiredzi Town Council 750 hectares in the remainder of Buffalo Range for residential development. As the land fell under Chiredzi Rural District Council, the two local authorities formed a joint committee to oversee the initiative.

FLOAAI was engaged to conduct a feasibility study and undertake town planning work, including subdivision planning and identifying routes for road opening and excavation up to hard surface. The developer was mandated to develop phase one covering 350 hectares and then hand it over to the two councils.

The State case alleged that in July 2022 the developer applied for a US$1.2 million loan from NMB Bank, misrepresenting that the two councils guaranteed the loan and that 1,700 stands were set aside as surety. Prosecutors further alleged that the loan was converted to personal use and that the stands were sold without the councils’ knowledge.

The matter also drew scrutiny from the Zimbabwe Anti-Corruption Commission (ZACC), which, according to the State, established that when stands were sold, the proposed stands were not serviced as per the agreement and that there was no subdivision permit or compliance certificate from the two local boards.

Separately, the Chiredzi Residents and Ratepayers Association (CHIRRA) sought a court order to stop the sale of unserviced stands. In July 2024, the Masvingo High Court, through Justice Zisengwe, granted an order barring the sale of stands until servicing had been done and a compliance certificate issued by the two councils.

The case also referenced correspondence involving Special Presidential Adviser Dr Joram Gumbo. In a letter dated August 22, 2025, Gumbo urged Chiredzi Town Council to facilitate the project, citing government’s Vision 2030 and affordable housing objectives. He later amended his position after being informed the matter was before the courts, writing that government does not interfere with cases under judicial consideration.

With the criminal case now dismissed, the magistrate’s ruling leaves any further contest over obligations, payments and project delivery to civil proceedings if any party opts to pursue that route.

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