The informal traders claim that the money was given to Masvingo city council as a grant by the German town of Kernen. Masvingo City is currently twinned with Kernen.
According to information obtained by The Zimbabwean, Mayor Chakabuda and Gusha went to Germany three years ago on an official visit. During their stay, the pair were allegedly given $400,000 for informal trading projects.
The money was supposed to be a revolving fund in which beneficiaries were supposed to repay the council. The returned money would then be loaned to other traders.
An estimated 40,000 informal traders were identified and each was to be given $1,000 to support their businesses.
Benson Mpofu, a spokesman for the informal traders, said Chakabuda and Gusha should resign to pave way for thorough investigations into the matter.
“We want to know where this money went because we have it on good authority that no one has benefited from the funds,” said Mpofu.
Both Chakabuda and Gusha confirmed having received money from Kernen but said the money disappeared when the agency contracted to manage the funds closed down.
“Of course we received the money. We agreed that it should be administered by Zambuko Trust but unfortunately when the trust collapsed all the money went missing,: said Chakabuda.
Zambuko Trust was a money lending institution operating in Masvingo.
Post published in: News