Of Property Development Fraud: Distinguishing Between the Honest and the Deceptive – The Gray Homes Scandal

Part 1 of a 5-part investigative series on real estate fraud in Zimbabwe

A couple of months ago, Zimbabwe’s business community was left reeling when Gray Homes Construction’s owners, Annavestah and Gray Mudiwa, were accused of defrauding Miniyothabo Baloyi-Chiwenga, the wife of Vice President Constantino Chiwenga, of nearly US$1 million in a series of construction deals gone awry .

The audacity of the alleged scam—targeting someone so closely connected to the nation’s highest office—has sent shockwaves through the country. If individuals with such influence can fall victim to fraudulent schemes, what hope is there for the average citizen seeking to build their dream home?

This article marks the beginning of a five-part investigative series titled “Distinguishing Between the Honest and the Deceptive – Property Development Fraud in Zimbabwe.” We aim to shed light on the murky world of real estate fraud, starting with the Gray Homes saga.

The Alleged Deception Unfolds

In March 2023, the Mudiwas reportedly convinced Baloyi-Chiwenga that they could construct a double-storey house, a cottage, and a boundary wall within 90 days. Trusting their assurances, she paid them US$560,000. However, the project was never completed, and she suffered a loss of US$389,100 .

The pattern continued in June 2023 when the couple allegedly misled her into believing they could build a warehouse at Chivaraidze Farm in Goromonzi. She paid them US$550,000, but again, the project was left incomplete, resulting in a loss of US$390,000 .

In September 2023, the Mudiwas purportedly convinced Baloyi-Chiwenga to fund the construction of a shopping mall at Silalatshani Business Centre in Filabusi. She handed over US$158,000, but the funds were allegedly diverted for personal use, leading to a loss of US$151,000 .

Legal Proceedings and Withdrawal of Charges

The couple was arrested and brought before the courts to face multiple fraud charges. However, in a surprising turn of events, Baloyi-Chiwenga withdrew the charges against them in February 2025. No reasons were provided for this decision .

Despite the withdrawal, the Mudiwas’ legal troubles were far from over. Other victims came forward with similar allegations, leading to additional charges.

A Pattern of Alleged Fraud Emerges

Beyond the high-profile case involving Baloyi-Chiwenga, the Mudiwas faced seven counts of fraud from various complainants:

• Anyway Choto, a businessman from Marondera, claimed the couple agreed to build a warehouse for US$135,000. He paid them US$122,163, but only the foundation was dug, resulting in a loss of US$105,963 .
• Gray Hardware supplied goods worth US$79,000 to the Mudiwas, who only paid US$39,860, leaving an unpaid balance of US$39,149 .
• Creative Itel Private Limited, represented by Shalome Chigovanyika, alleged that the couple ordered cellphones under the pretense they were for government officials. The goods were delivered, but payment of US$21,160 was never made .
• Never Tembo, director of Virtue Trade Petroleum, contracted the Mudiwas to build a double-storey house for US$390,000. Only US$117,000 worth of work was completed, leading to a loss of US$273,000 .

Bail and Ongoing Legal Battles

After spending four months in custody, the Mudiwas were granted bail in February 2025. They were released on US$500 bail each, ordered to surrender their passports, report weekly to the CID, and reside at their given addresses .

Their legal battles continue as they face multiple fraud charges from various complainants.

The Broader Implications

The Gray Homes case underscores a troubling trend in Zimbabwe’s property development sector, where individuals and companies exploit trust to defraud clients. If someone as connected as the Vice President’s wife can fall victim, it raises concerns about the vulnerabilities faced by ordinary citizens.

This series aims to delve deeper into such cases, exploring the mechanisms of fraud, the legal frameworks in place, and the stories of those affected.

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