Former town clerk Mahachi fingered in city scandal
5 May 2017
FORMER Harare City Town Clerk, Tendai Mahachi, has been fingered in a city parking scandal involving US$800 000 which was fraudulently awarded to a local company after misrepresented that it was into parking management business.
Mahachi, who was the ex-officio director of City Parking (Pvt) Ltd during his tenure of office, is standing accused of fraudulently facilitating the botched parking management deal between his employer and Shelstein Enterprises (Pvt) Ltd.
The former Town Clerk is also said to have made the City of Harare fork out money for seven councillors who reportedly travelled to Israel as part of the deal.
Mahachi was then arrested and taken to the Harare magistrates’ court charged with criminal abuse of office.
He was not asked to plead to the charges when he appeared before magistrate Josephine Sande, who remanded him out of custody to May 31 on US$200 bail.
Circumstances leading to Mahachi’s arrest are that sometime in January 2014, misrepresented to the City of Harare Business Committee that Shelstein Enterprises was in the business of parking management.
Mahachi was said to be aware that the said company was not in the parking business.
Reports are that on January 30 2014, Shelstein Enterprises was then invited by the City of Harare Business Committee to make a presentation on their services.
Accusations are that Shelstein Enterprises misrepresented that it was the Southern Region sole franchise holder for Parx Global International which is based in Israel.
The company also misrepresented that Parx Global International was in the business of manufacturing and supplying of parking management equipment and software.
Shelstein was also said to have lied that it was able to provide state-of-the art parking management systems from Parx Global International for free for City Parking (Pvt) Ltd.
On March 7 2014, Mahachi is said to have signed a Memorandum of Agreement with Shelstein Enterprises on behalf of City of Harare.
After two weeks from signing the agreement, Mahachi is said to have sent seven councilors along with Shelstein Enterprises officials to Israel to make a research on Parx Global International.
Reports are that whilst they were in Israel, a company called Cashless Payment Technologies entered into a MoU of a franchise as the sole distributor in Southern Africa of Parx Global Parking Management System.
The State led by Sebastian Mutizirwa had it that on June 20 2014 Mahachi used his influence and recommended City Parking to enter a joint venture partnership with Shelstein Enterprises knowing that it was not into parking management business.
As part of the agreement, they agreed to each inject US$800 000 into the business before they sealed the deal on August 30.
City Parking is said to have transferred US$800 000 into Shelstein Enterprises’ bank account.
Shelstein Enterprises officials reportedly converted the money into their own use.