ZACC Investigates Alleged Misuse Of US$4.5 Million NSSA Funds In CIO Construction Project

The Zimbabwe Anti-Corruption Commission (ZACC) is investigating the use of millions of dollars in government pension funds for a construction project linked to the Central Intelligence Organisation (CIO), amid concerns over possible abuse of influence and misuse of public money.

ZACC has carried out raids at the National Social Security Authority (NSSA), the CIO’s investment arm Terrestrial Holdings, and at least two financial services firms as part of inquiries into a US$6.8 million, three-storey development launched in Harare in 2021.

Documents seen by ZimLive show that NSSA released an initial US$4.5 million for the project in what appears to have been a direct commercial loan, a move that falls outside the pension fund’s core mandate.

While NSSA has previously funded housing and development schemes, such investments are usually subject to strict safeguards, including bank guarantees and close oversight.

Investigators are examining allegations that Terrestrial used institutional influence to secure the funding, with some of the money allegedly diverted into opaque investment arrangements shortly after disbursement.

Sources say the project was initiated under former CIO director-general Isaac Moyo, with his then deputy, Linos Mapfumo, playing a central role in structuring the deal.

Mapfumo, now posted to Zimbabwe’s embassy in Paris, is said to have worked closely with the late Nyasha Nash Dzimiri, who headed Terrestrial Holdings until his death in April 2024.

NSSA paid the US$4.5 million through Stanbic Bank Zimbabwe into the account of Chigama Architectural Services and Project Management, which partnered with Terrestrial on the development at Stand No. 8 Natal Road, a CIO-owned property in Harare.

ZACC is also probing claims that part of the funds were channelled to an asset management firm and a money transfer company facing liquidity problems, allegedly for high-interest investments that benefited insiders. The firms under scrutiny include Alpha Asset Management and Access Forex.

Search-and-seizure warrants were executed between November and January at Terrestrial Holdings and Chigama Architectural Services to obtain contracts, financial records and related documents.

Investigators are expected to determine whether NSSA followed proper procedures in releasing pensioners’ funds and whether any criminal conduct occurred in the financing and management of the project.