A forensic report says it is next to impossible for the National Social Security Authority to recover the $49 million it spent on building the Beitbridge Hotel. The hotel has been vacant since June last year, and the authority is considering turning it into residential flats, to get some money. The hotel was originally budgeted to cost $3 million dollars in 2007. However, the costs started rising from $3 million until they reached $49 million.
Part of the report reads:
Assuming an average rate per room of US$275 was to be charged at Beitbridge hotel, the payback period would be about 51 years.
However, since Rainbow Tourism Group operated the Beitbridge Hotel it charged $50 per night per room it means that it would take the authority 278 years to recoup its money.
The report also noted that NSSA did not take due diligence studies before the construction of the hotel.
Nssa did not perform an independent feasibility study as the basis on which the investment decision should have been informed,
More: The Zimbabwe Independent