A Harare businessman accused of masterminding one of the largest housing scams in recent years has appeared in court on fraud charges after allegedly defrauding desperate home seekers of more than US$2 million.
The suspect, Lloyd Maungira (50), is the director of the Mabvuku–Tafara Housing Pay Scheme. Prosecutors allege that he misrepresented himself as an authorized agent of the City of Harare and went on to illegally sell both residential and commercial stands belonging to the municipality, housing cooperatives, and private housing trusts.
According to court documents, Maungira personally handled transactions, signing fraudulent sale agreements and issuing receipts under the guise of official approval. The alleged scam, which ran for months, targeted unsuspecting families desperate for affordable housing in the capital.
The Harare City Council last week issued a strongly worded public notice distancing itself from Maungira’s operations. In the statement, the Council clarified that Maungira had no authority whatsoever to sell land on its behalf.
“He has been engaging in fraudulent activities, specifically selling Council’s residential land without the Council’s approval or knowledge. Any transactions or dealings with Mr. Lloyd Maungira involving Council land are illegal,” the notice read.
Massive Housing Scam: Lloyd Maungira Arrested for Defrauding Clients
City officials urged residents to exercise caution and verify land transactions directly with council offices. They warned that anyone who purchased land through Maungira risked losing both money and property rights, as the sales were null and void.
Among the groups hardest hit by Maungira’s alleged activities is the Pure Gold Housing Trust, which reported significant losses after its clients were duped.
Benjamin Murata, branch manager of the Trust, said the fraud had damaged the organisation’s reputation and created unnecessary tension between legitimate land developers and clients.
“It costs to lose trust and faith from people because of someone who is after reaping where he did not sow,” Murata said. “We are relieved that the police managed to track and arrest the suspect who has been causing sleepless nights by selling residential stands allocated to our clients.”
Murata added that the fraud had forced many home seekers back to the drawing board, uncertain about whether they would ever recover their investments.
Court papers indicate that the stands illegally sold by Maungira had a combined value of approximately US$2.4 million. The properties included both residential stands earmarked for low- and middle-income earners and commercial lots intended for business development.
Investigators believe Maungira pocketed the proceeds without remitting any funds to the City Council or to the rightful owners of the land. Police say the scale of the fraud suggests that many more victims are yet to come forward.
Maungira was remanded in custody following his initial court appearance, as investigators continue to build their case. Prosecutors are expected to present additional evidence, including forged documents, witness testimonies, and bank records.
If convicted, Maungira faces lengthy jail time under Zimbabwe’s tough anti-fraud laws. The authorities have also hinted at possible asset seizures to recover some of the stolen money.
The case has sparked widespread debate about land governance in Harare, where demand for residential stands far outstrips supply. Experts say weak oversight, poor enforcement of council regulations, and corruption have created fertile ground for fraudsters to exploit desperate home seekers.
The scandal has reignited calls for tighter regulation of housing cooperatives and pay schemes, many of which operate with minimal oversight. Civic groups argue that government should introduce stricter verification processes for land agents to prevent similar scams.
“This is not just about one fraudster. It’s about a system that allows individuals to manipulate loopholes at the expense of citizens,” said one urban housing activist in Harare. “We need stronger governance and greater transparency to protect the public.”
The Ministry of Local Government is under pressure to strengthen collaboration with law enforcement agencies to crack down on bogus land sales and restore confidence in the housing market.
Police spokespersons have confirmed that investigations are ongoing and more charges may be added as new complainants step forward. Authorities have encouraged all victims to file formal reports so that the full extent of the alleged fraud can be established.
As the case unfolds, many affected families remain anxious about their financial future. For some, the alleged scam wiped out life savings painstakingly set aside for years.
For now, Lloyd Maungira’s arrest provides some relief to victims and housing developers alike, but the scandal has left a scar on the trust between land buyers and sellers in Zimbabwe’s capital.
Source – byo
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