Here are your heros. All happily stealing together. Ndebele Shona. Here is what unity was about.

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Asset Ownership Study

I. Introduction

Corruption in Zimbabwe is on the rise. Over the past two years, the local press has reported a number of incidents involving the President, his relatives, ministers, his wife and top civil servants.

Most Zimbabwean civil society organizations are concerned about the lack of coherent information on the extent of corruption within the government and the society as a hole. As these groups become more involved in efforts to strengthen Zimbabwean democratic institutions, a clear picture of the extent of corruption and its links to the country’s ruling party, ZANU-PF will be more important in setting program priorities, identifying appropriate policy changes and working with civil society organizations. To provide this information, in March 1999 an informal study was begun to determine the extent of assets controlled by those in the top political and advisory positions in the current government.

The following list of individual files was developed from a set of 21 interviews with key Zimbabwean business and civil society representatives. The list does not represent all individuals involved with ZANU-PF only those that the interviewees thought were closest to President Mugabe.

Information in the files below needs to be interpreted with caution. The information is anecdotal in nature with most collected through personal interviews, newspaper and magazine articles and limited company documentation. Efforts were not attempted to verify the items in the files. In addition, much of the information is incomplete and probably represents the tip of the iceberg. For example, a review of official records maintained by Harare Registrar of Companies of 98 companies mentioned in the list showed that many had either outdated or missing records or were not registered at all. For those companies where there are records, 40%, many had no owners of record and only listed company directors.

II. Summary of the Findings

There are a number of general findings that can be drawn from the information contained in the material.

· In no place is President Mugabe implicated. Other than information regarding a £500,000 payment made to President Mugabe by Bank Credit and Commerce International (1993 US Senate Hearings) and the construction of the President’s new Borrowdale home (the land was purchased by ZUNU-PF and construction partially supported by Air Harbor Technologies, the main contractor on the Harare International Airport) his name does not appear. It is highly likely that Mugabe’s business holdings are held off-shore possibly through Zidco Holdings affiliated companies in the United Kingdom (Unicorn Import Export and Eagle Investments) or through companies owned by Billy Rautenbach (Ridgepoint Overseas Development, British Virgin Islands) and John Bredenkamp (Braco Services, Isle of Man).

· From the information provided, it is difficult to identify what individuals own and what is owned by ZANU-PF. For example, Emmerson Mnangagwa sits on the boards of 14 companies that are wholly or partially owned by ZANU-PF. However, from the information collected he apparently has no private holdings in any of the companies, except Oporto Investments.

· Likewise, it is difficult to tell if there are individual interests in the holding companies that have been established by ZANU-PF to warehouse shares in private sector companies that ZANU-PF says it will redistribute eventually to Zimbabwean citizens.

· Over the past 4-years a core power group has been emerging with respect to the party’s holdings. The group includes three ZANU-PF insiders, Emmerson Mnangagwa, Sidney Sekeramayi and Vitalis Zvinavashe, and two prominent ZANU-PF business associates, Mutumba Mawere and Philip Chiyangwa. There is some evidence that the latter individuals are being used by ZANU-PF to disrupt legitimate businesses via corruption investigations while ZANU-PF attempts to purchase a share of the business. Current cases in point include Kingdom Holdings and Econet Wireless.

· A major focus of this group has been to identify and tap major sources of financing to be used to expand the party’s and their own business empire. Efforts have included: Mnangagwa’s attempts to tap into Zimbabwe’s pension funds, Mawere’s efforts to establish the African Resources Investment Trust to mobilize Southern African investors and the party’s involvement with Oryx Natural Resources and Petra Diamonds. Each of these attempts have been stymied in one way or another. If they had been successful, it would not have been a surprise if the Zimbabwean government’s privatization efforts had been speeded up to allow the group to buy into prime state owned assets. Their major target would have and continues to be the state owned mineral and mining assets.

· There is clear evidence that over the years the Development Trust of Zimbabwe, founded by Joshua Nkomo and its members have been marginalized by ZANU-PF. Many of the companies started by the trust have either gone bankrupt or are moribund.

III. Individual Business Holdings

Individual business holdings are provided in three formats:

· Individual files describing the business related activities on 26 people. Files are divided into two groups;12 Mugabe ZANU-PF associates and 14 business colleagues;

· A list of over two hundred companies organized by affiliation with the 26 politicians and businessmen above; and,

· A list of companies associated with the above individuals including ownership structures, where available and registered directors.

A. Individual Business Dealings
1. Political Colleagues

a) Emmerson Mnangagwa: former Minister of Justice

· Mnangagwa was the former MP from Kwekwe Central.

· Mnangagwa, who has extensive military training, serves as the Treasurer of ZANU-PF. As such he oversees all of the business dealings of the party and is privy to the financial operations of the two ZANU-PF controlled holding companies: Zidco Holdings (focuses on imports and exports) and M&S Syndicate (focuses on agriculture, property management and share ownership in selected Zimbabwean companies). Mr. Mnangagwa, who resigned as chairman of M&S Syndicate, has retained his directorship in Zidco Holdings, Zidco Motors, Oporto Investments, Fibrolite Zimbabwe, A.M. Treger, Catercraft, Zidam Investments, Midlands Motor Center, Galant Distribution, Galhold Investments, Woolworth Trading, Treasure Holdings, First Bank Corporation and National Blankets.

· He was instrumental in establishing the Zimbabwe-Bulgaria Parliamentary Association in 1988. The association, which he launched, is committed to fostering economic, cultural and political co-operation between the two countries. In 1993, a Bulgarian company, TecnoExport, using Bulgarian Army engineers, was involved in constructing of the New Limpopo Bridge at Beitbridge. They were a joint venture partners with Datrive Civil Engineering (Pvt.) Ltd. a Development Trust of Zimbabwe subsidiary, that was established shortly before the bridge contract was let in August 1993 with share capital of Z$ 20,000.

· In 1992, Mnangagwa indicated that ZANU-PF assets were worth Z$486m. Business ventures included Zidco Motors, Midlands Motors, Treger, Zidlee, National Blanket, Mike Appel Group, Catercraft and two farms in Arcturus. He indicated that ZANU-PF had at one time owned Woolworth’s Department Store but had disposed of the asset.

· Mnangagwa helped structure a joint venture between Oporto Investments, a wholly owned subsidiary of M&S Syndicate, and a Portuguese national, Armando Godinko. The resulting subsidiary, Fibrolite (Pvt.) Ltd., which is currently jointly owned by Zidco and Jaquim Abreu, was capitalized at Z$46.0m and manufactured kits to be used to build asbestos houses (Z$14.0m for the plant and Z$18.0m for equipment). Fibrolite, which is chaired by Mnangagwa, currently employs 35 people and has an estimated turnover of Z$15.0m per annum. In 1999, they were expect to earn US$1.1 million in foreign exchange from asbestos sheet exports to South Africa, Malawi, Namibia and Portugal. It is interesting to note that Godinko’s son, Luise, the owner of the Mirage NightClub, was arrested in 1995 for the rape and abduction of a 17-year old girl. When immigration sought to cancel his residence permit, Dumiso Dabengwa stepped in to protect Luise at the request of the CIO. Mr. Mnangagwa had previously served as the Minister for State Security in the 80s, which is in charge of the CIO. He is still referred to by CIO operatives as “the son of god” because of his close ties with Mugabe. The CIO indicated that Luise was one of their operatives and a vital source of information. On the other hand, Elias Mbedze, the principal immigration officer, described him as a “graduate in crime” and a “dangerous guy”. At the time, Luise was appealing a conviction for bribing a police officer.

· Mnangagwa’s star began to rise when he left State Security and took over the rains of the Ministry of Justice in the late 80’s. This important post allowed him to draft and introduce new laws that assured that ZANU-PF remained in power and the opposition remain fragmented. He has used this position and his association with M&S Syndicate and the military to consolidate his position within the party. He is reputed to be the business and financial brains behind the party using his power to by into new business ventures and raise capital on behalf of the party and himself.

ü In 1997 it was rumored that he directed representatives of Zimbabwe’s major pension funds to invest 10% of their capital in the African Resources Investment Trust (See Matumba Mawere for more details on the defunct trust). The request came months after the government had reduced the pension fund’s prescribed asset ratio from 55% to 45% and while the funds where under threat of government action to levy a 15% withholding tax on pension fund contributions. The fund’s negative reply resulted in the introduction of the new tax, a step soundly criticized by economists, pension fund managers and stock brokers. However, this wasn’t the only time Mnangagwa attempted to tap the pension funds for capital. In August 1999, he criticized funds held by Wankie Colliery, ZESA and the National Railroad of Zimbabwe for not supporting the floatation of a Z$500.0m bond issue by the parastatal, Zimbabwe Iron and Steal Company. The flotation only attracted Z$35.0m from the Commercial Bank of Zimbabwe, Trust Merchant Bank and the Post Office Saving Bank, all government controlled or affiliated financial institutions

ü In May 1999, Mnangagwa in a candid interview given to a local Harare paper admitted that he had introduced a Chinese arms company, two transport companies, a banking group and a power company to Kabila to help them establish business ventures in the DRC. Apparently, these introductions bore fruit. In 1999, the First Bank Corporation, where ZANU-PF through Zidco has a 25% equal share with Matumba Mawere, located its first overseas branch in Kinshasa. This business venture complemented those of two other Zimbabwean trucking companies, Wheels of Africa owned by Bill Rautenbach and Zvinavashe Transport owned by General Vitalis Zvinavashe, who where already ferrying arms and military supplies between Zimbabwe and the DRC. In addition, in 2000 reports indicate that arms shipments including the procurement of 21,000 AK 47s and US$53.0 worth of heavy arms, arranged by Zimbabwe on behalf of the DRC, were sourced in China. Finally, in July 2000, ZESA concluded a deal with the DRC electric generation parastatal for the procurement of 40% of Zimbabwe’s electrical needs.

ü In November 1999, African Confidential reported that Mnangagwa was working with Billy Rautenbach, John Bradenkamp and Ricky Passaportis in the procurement and transport of military supplies for Zimbabwean and Congolese troops in the DRC. The article stated that “Bredenkamp claims he is the leading arms supplier to the Congo”. The article went on to say that the arms trade was benefiting “a few senior politicians and military officers, business partners of a group of old Rhodies”. Mnangagwa’s connection with the latter was reported to be a concern to Cabinet and almost led to the resignation of Moven Mahachi, the Minister of Defense.

ü It is likely that Mnangagwa’s association with “old Rhodies” only in part caused the Mahaichi’s displeasure. Reports indicate that after heavy losses suffered by Zimbabwean troops in the Congo in late 1998, the ZDF lost several gun ships, suffered heavy casualties and were forced into retreat, Mnangagwa and Sidney Sekermayi were ordered by Mugabe to go to the Congo to access the situation. Mahachi took their involvement in military operation as a direct usurpation of his authority and was furious. In addition, it was about this time that senior sources in the military reported that the top brass in the Defense Ministry began reporting directly to Mnangagwa on the situation in the DRC. The same sources revealed that Mugabe instructed Mnangagwa in early 1999 to over see Zimbabwe’s military operations in the Congo. News reports from Harare indicated that during key military operations Mnangagwa would suspend his official duties at Corner House to direct operations, particularly the eastern military onslaught against the rebels. He reported suffered a hand injury during one of the visits to the war front in the middle of 1999.

ü Mnangagwa is believed to have been instrumental in setting up and maintaining Rautenbach mining activities in the Congo. Rautenbach’s association with the Congolese mining industry began when the Congolese government was unable to pay for a 300 km road linking Matadi with Kinshasa that Rautenbach had been contracted to build. In place of a cash payment, he was given a cobalt mining concessions near the southern industrial town of Lukasi. South African mining experts indicate the mine produces 150MT of cobalt a month, worth an estimated Z$ 6.0m.

ü With Mnangagwa direct intervention with Kabila, Rautenback was awarded further concessions in mid-1999. In October 1999, Pierre Victor Mpoyo, the Congolese Minister of State and financial advisor to Kabila oversaw the reassessment of Gecamine’s core mineral assets to Rautenbach’s Ridgepoint Overseas Development Ltd. The resulting joint venture, in which the Congolese officials had a share, saw the returns from Gecamine’s copper and cobalt divided with 62.5% going to the DRC government and 37.5% to the Ridgepoint affiliate. From the DRC’s share, 20 to 30% was meant to go to the Zimbabwean government in part payment for its military support. For his involvement, Rautenbach became the Chairman and CEO of the Congolese mining conglomerate, Gecamines. Newspapers at the time reported that “highly placed Congolese and Zimbabweans have received ex gratis payments from both Ridgepoint and the Congo”. Mnangagwa’s share in these payments is unknown.

ü Also, believed to be in a diamonds-for-arms-deal with a senior Zimbabwean Air Force officer in the Congo (Punch Magazine, May 19, 2000). Mnangagwa officiated at the opening of Senga Mine, a joint venture between the Zimbabwean Defense Forces and the Armed Forces of the Congo. Initial capital investment for the project was US$30.0m, half of which came from John Bredencamp.

· In November 1999, Mnangagwa opened the new duty free shop at Beitbridge owned by Zidlee Enterprises, a subsidiary of Zidco. The shop complex, said to be the largest in SADC, covers an area of 1,000 sq. meters and employs 35 employees. Zidlee also operates duty free shops in Victoria Falls, Harare and Harare International Airport. Sources indicate that ZANU-PF uses these outlets as a mechanism for moving foreign exchange off shore.

· Mnangagwa is alleged to have introduced Philip Chiyangwa, the self-proclaimed founder of Affirmative Action Croup, to the Kabila regime on behalf of the Zimbabwe government. Chiyangwa’s Native Investment Africa Ltd. was given the franchise by government to act as a business link amongst potential Zimbabwean investors in the DRC. It also secured a Z$400.0 million investment facility from financial institutions in the United States and Britain for companies that wanted to export to the DRC.

· Following the death of Roger Boka, auditors found that Mnangagwa was one of the many Zimbabwean politicians who had borrowed from Boka’s operation. Auditors indicated that Mnangagwa had borrowed Z$400,000 from the Zimbank’s Westend Branch account of Goldleaf Tobacco Bundlesales, one of Boka’s companies. The check, written on January 30, 1997 on Boka’s order, was to be repaid by January 1, 1998. Justice Mubako has since ordered Goldleaf into liquidation because “it had no fixed assets, was not a going concern and was heavily in debt”. The “paper company” owed Z$300.0m to the United Merchant Bank, Boka’s defunct bank. The so-called loan carried a 29% interest rate. In July 1999, Mnangagwa indicated he did borrow money, not from the bank, but from Boka in a personal family-to-family deal. He indicated the funds were used to purchase buses. In July 1999, 7 months after the loan was due, Mnangagwa said when approached by the Boka family that he had repaid part of the loan.

· Mnangagwa’s payment rate is less that stellar. In June 1999, the Harare City Council indicated that he owed Z$410,231 in back water rates. Apparently, Mnangagwa hadn’t paid his water bill for 12 months.

· As Secretary of Finance for ZANU-PF, confirmed that the party purchased a 10-hectare property in Borrowdale as a gift for President Mugabe. The property is the site of the President’s new Z$ 30.0 million mansion (Financial Gazette, Sept. 9-15, 1999). In addition, some believe that Mnangagwa organized a US$1.0m time release payment from Air Harbor Technologies, the developers of Harare International Airport, for the construction of President Mugabe’s new home in Borrowdale. Payments, which were to be made as construction progressed, were to go through the offshore account of Jayant Joshi, the Managing Director of Zidco the ZANU-PF holding company. According to sources, Joshi and other senior party officials had “imposed their own personal taxes on these sums.” However by August 2000, it became apparent that the Yugoslav-company building the house had never received the funds. For his efforts in arranging the deal, Yamani contends that Mnangagwa was paid by Air Harbor through their local representative, Tony Kates, Z$675,000 or US$42,391. Others involved in the deal indicate that Yamani while pledging the funds never followed through with payment.

· Although opposed by party stalwarts, Mnangagwa after loosing his Kwekwe seat in the 2000 Parliamentary Elections was re-appointed by Mugabe to Parliament. With Mugabe’s support he was elected speaker.

b) Sidney Sekermayi: Minister of State Security, Office of the President

· Very little is known about Sekermayi following his departure from his departure as Minister of Health to take over the position of Minister of State Security in the President’s Office.

· Serves as a Director of Zidco Holdings (Pvt.) Ltd. the ZANU-PF controlled holding company. (See file on J. Joshi for more detail).

c) Eddson Zvongo: Minister without Portfolio, Office of the President

· Zvobgo is a Harvard trained lawyer, former Minister of Mines and current ZANU-PF Secretary for Legal Affairs.

· Has a strong reformist image, advocating constitutional reform as early as 1995 (two house parliament, separation of powers, a bill of rights only amended by 70% vote of both houses sitting separately, and an examination of presidential term limits). Ousted as the Minister of Mines in 1996 to become Minister without Portfolio in the President’s Office, allegedly because of health (he was in a car accident in late 1995). He has over the years tended to take positions opposite to that of President Mugabe’s inner circle. For example, in 1998 he apologized for the government atrocities committed in the late 1980s in Matabeleland.

· Confirmed that he was a Director of Shepton Estates (Pvt.) Ltd., which was owned by Roland “Tiny” Rowland and controlled his five farms in Kadoma. Stepton also held Mr. Rowland’s shares in Lonrho PLC, which the firm sold to Dieter Bock, the new Lonrho PLC CEO, for 91.0 million pounds in 1996. Later, the Zimbabwe government alleged that the sale was subject to Z$300.0 million in unpaid Zimbabwe income and capital gains taxes. Zvobgo indicated that he took the job as Director to help Mr. Rowland manage his Zimbabwean farms after moving to England. Zvobgo said he never received payment for his services never participated in a Board meeting and didn’t know the other board members. For assisting Mr. Rowland in the sale of the shares, he got 1.0 million pounds to help finance President Mugabe’s 1996 election. The money was turned over to Mr. Mugabe in the presence of Mr. Mnangagwa.

· Publicly sympathized with Strive Masiyiwa in his bid to have the government grant his company, Econet Wireless (Pvt.) Ltd., a license to operate a mobile cellular telephone license.

· Alleged to have purchased Kadoma Ranch Motel for Z$22.5 million from Interfresh (Pvt.) Ltd. in February 1998. The hotel continued to be managed by Rainbow Tourist Group, a government parastatal, operated under the Zimbabwe Tourist Board.

· Owns Flamboyant Motel, Cheveron Hotel and the Ritz Restaurant in Masvingo. The Flamboyant was upgraded to 3 and expanded its room three fold in 1991 at a cost of Z$ 19.7 million. The architect for the expansion was Trevor Juul (see T. Juul’s file).

· Is the major owner of Plumbing and Jobbing (Pvt.) Ltd. in Masasa and is the Director of the Corporate Investment Company. In August 1998, the High Court ordered Plumbing and Jobbing to pay Z$4.0 million it owed to the Zimbabwe Banking Corporation.

· In February 1999, Zvobgo confirmed that he owed the District Development Fund for work done at his Nyuni Farm in Masvingo. The Fund, which had a deficit of Z$50.0 million, was established to carry out development projects within Zimbabwe’s communal areas. An audit of the Fund showed it had poor financial management and undertook work outside its designated mandate without appropriate ministerial authority. The Fund was owed Z$34.0 million for work it had done on credit and an additional Z$16.0 million that it couldn’t account for.

· Eddison Mnangagwa ousted Zvobgo as the chief government negotiator in the constitutional reform process in May 1999. Insiders indicated that Zvobgo had taken the reform process beyond what ZANU-PF had agreed on.

· Although not on the official list, Zvobgo was allocated two prime plots of land Highlands in March 2000 by Solomon Tawengwa, the former Mayor of Harare.

d) Charles Utete: Cabinet Secretary

· Former Secretary to the President, now serving as the Cabinet Secretary. He was appointed as Chairman to the University Council, University of Zimbabwe and serves and the President’s Representative to the World Solar Commission.

· He is related through his wife to Charles Kwaza, the former permanent secretary Ministry of Defense and now senior permanent secretary at the Ministry of Finance. Local sources believe that the two men have been strategically placed by President Mugabe to control the Cabinet agenda and government financial allocations respectively.

· Rents an 8,500 acre farm which has “a few cattle and produces a little cotton” (London Times, date unknown).

· Holds a lease on a government owned 3,350 ha Ridziwi Farm in Lomagundi, from Sept. 1, 1991 to Sept. 30, 2000 at a lease rate of $60,000 pa.

· Implicated in 1997 in the government Tender Board’s faulty issuance of Zimbabwe’s second cellular license to Telecel (Pvt.) Ltd. The head of the Tender Board, Stanley Mahlahla, in a affidavit filed in the High Court stated “The secretary to the President (Utete) informed (me) that the resolution (to jointly award the license to Telecel and Econet) should be re-drafted for the issue of a license…I reconstituted Resolution 4317B (the award of the license to Telecel”.

e) Kumbirayi Kangai: former Minister of Lands and Agriculture

· Saved Mugabe from an assassination attempt in Mozambique during war. Found out about the plot and told Mugabe.

· Kangai left the Manicaland Provincial Chairmanship of ZANU-PF Z$580,000 in debt. The new Chairman, Shadreck Beta, said that the money was spent in an attempt to gain support for the elections. Expenditures were for transport, halls, food and accommodations for officials coming from outside Mutare, the provincial capital.

· In 1997, Kangai was awarded a 62% disability by the now defunct War Veterans Fund and received a lump sum payment for Z$117,000 and a monthly pension of Z$1,337.57. Kangai alleged that injuries received in a bomb blast in January 1980, after the war had finished has let to permanent injury, poor vision, chest pains and poly-arthritis.

· Until his removal as Minister of Agriculture (see below), Kangai managed the distribution of land acquired by the government for its resettlement program. Acting on Presidential orders, it is believed he used the distribution system to keep party members in line. In 1994, he defended the program’s leasing scheme that saw 92 VIPs receive leases to state owned farms. Amongst this group were Stan Mudenge, then the Minister of Higher Education, Dr. Witness Mangwende, the Minister of Education and Culture, Air Marshal Perence Shiri, head of the Zimbabwe Air Force, Welshman Mabhena, the Governor of Matabeleland North Province, Simon Moyo, then Deputy Minister of Industry and Commerce, and Vote Moyo, Alois Mangwende, Mabel Chenomona and Richard Katsande who were Parliamentarians. In December 1999, the ZANU-PF Congress roasted him for his sole handed approach to the land distribution and accused him of handing over farms to those who could afford to pay for them.

· A year earlier, Kangai in a public statement indicated that he had not benefited from the leasing scheme personally, had not leased any government land through the program and owned only one 300 ha. farm. Sources in Harare however accuse him of owning a number of farms through relatives and others. This allegation was given credence in 1999 when it became known that Kangai owned Luna Estates. Luna apparently controls 40% of Mutuke Cattle Ranching (Pvt.) Ltd. with Chidziva Investments (Pvt.) Ltd. (40%), owned by Melchior Gore Chidziva, and a Mr. Rupere (20%). It is believed the trio that in 1997 forced the transfer of a lease held by a Mr. Mallet to Imbwa Farm to Mr. Rupere. Luna then borrowed Z$6.0 million from the Commercial Bank of Zimbabwe in May 1997 to purchase 200 cows and bulls (Z$1.0 million) and 4,900 weaners (Z$4.9 million), and for capital development costs (Z$775,000). The loan was secured by property owned by Chidziva Investments, which was valued at Z$16.0 million.

· Kangai, now the former Minister of Lands and Agriculture, is currently under investigation on a Z$ 228.0 million corruption charge for inappropriate dealings while in charge of the Grain Marketing Board (GMB), a government parastatal (see below for more information). Because of his relationship with Mugabe, sources in Harare believe it is unlikely that he will suffer in any material way from the corruption charges. This investigation was purported stopped at Kangai when the trail began to lead to the President and other senior ZANU-PF members.

· The GMB saga has taken a number of twists and turns since it was announced in May of 2000. In April 2000, Martin Mucharo, the Managing Director of GMB, Dorothy Chasakara, GMB’s Financial Executive and Tobias Takavarasha, the Permanent Secretary of the Ministry of Land and Agriculture were dismissed for the alleged fraudulent purchase and subsequent export of maize to Zambia. Shortly there after, Kangai fired the GMB Board. It was alleged that Mucharo et al did not float a public tender for maize importation and favored a local commodities company, Newman Commodities (Pvt.) Ltd. in awarding the export license. GMB is believed to have lost about US$85.0 million on the deal. The GMB Board Chairman, Paddy Zenda, the Chairman of the Cotton Company of Zimbabwe, indicated that the board had been fired by Kangai not because it knew of Muchero’s dealings but because investigations into the irregularities had been proven and led to the prosecution of Muchero, against Kangai’s wishes.

· In later developments, Kangai was himself charged for fraudulently siphoning Z$224.8 million from GMB. It is alleged that he allowed GMB to procure 50,000 MT of maize in 1997 without going to tender. He then indorsed Muchero’s idea to skirt regulations for the one off purchase and then approved the resale of 41,00 MT to the Zambian Grain Authority by the four companies that had managed the procurement; All Commodities/Glencore, Southern Trade Finance/Extrade, Newman Commodities/Andrie CIE of Switzerland and Cargill. A second charge was also levied involving Kangai and Newman Commodities/Andrie CIE. It has been alleged that between October 1998 and January 1999, Newman Commodities/Andrie CIE purchased 80,000 MT of maize from GMB for US$120 a ton for export. At about the same time, GMB contracted Andrie CIE; Newman’s off shore partner, to import maize from South Africa at a cost between US$165 and US$209 a ton. Kangai is accused of falsifying the export permits used by Newman Commodities/Andrie CIE to export the grain. He apparently entered GMB’s not Newman’s name on the permit to circumvent maize export restrictions, which ban private companies or individuals from exporting the commodity. Interpol has been asked to investigate Kangai’s foreign accounts in connection with the case.

· In July 2000, local newspapers reported that Kangai was under investigation by the National Economic Consultative Forum’s anti-corruption sub-committee for illegally tendering Z$500.0 million in sugar exports. Phillip Chiyangwa, a local businessman and ZANU-PF hatchet man heads the sub-committee (see Chiyangwa’s file for more information).

· Believed to own two inter-city bus companies possible with the President.

f) Didymas Mutasa, Secretary for Administration, ZANU-PF.

· Former Minister of National Affairs, Employment Creation and Co-operatives and Speaker of Parliament. In April 1999, he said he was leaving the government to take up a full-time post as Secretary for Administration, ZANU-PF.

· Although Mutasa has been described as a “consummate insider and one of President Mugabe’s staunchest supporters”, he did admit publicly in May 1999 to having presidential aspirations but only after Mugabe leaves office.

· Mutasa has had a longstanding fight with Kumbirayi Kangai, the former Minister of Agriculture, over control of ZANU-PF party machine in Manicaland. The fight surfaced in 1994 when Kangai, them the Minister of Agriculture and Manicaland Chairman of ZANU-PF, threatened to clean up the Mutare City Council. It broke out again publicly in 1997 when Mutasa almost got in to a punch-up with Kangai in Parliament. He lost a subsequent court case to block the reprimand by Parliament for breach of parliamentary privilege.

· He has been involved on a number of occasions in providing support of Shadreck Beta, the local Mutare businessman who eventually ouster Kangai from the ZANU-PF chairmanship. In 1995, Mutasa blocked a Messenger of the Court from attaching property owned by Beta, which had been pledged against another’s loan. He and his brother, Mischeck Beta, own TNT Holdings (PVT.) Ltd., which has supermarkets throughout Manicaland. In another incident the same year, Mutasa blocked a decision taken by the Mutare Labor Relations Board, which had ordered the Beta brothers to pay two of their supermarket employees Z$8,724 in back wages for overtime and unpaid wages. When the Betas didn’t pay, the court issued an order to attach their property.

· Mutasa has intervened on other occasions on behalf of his supporters. For example, in 1995 he protected Misheck Zvasivadya, a former Zimbabwe Defense Forces officer, from loosing his security business, Cobra Security (Pvt.) Ltd. Four of the sixteen members of the former cooperative that owned Cobra alleged that Zvasivadya converted the company to a private business without informing them. The court found for the plaintiffs and ordered Zvasivadya to convert the business back into a cooperative. Mutasa successfully intervened and blocked the court ruling.

· Sources report that Mutasa is not fully trusted by President Mugabe since he is from the wrong area.

· Mutasa owns the Nelia Milling Company (Pvt.) Ltd. in Rusape, his hometown and is believed to own a local inter-city bus and a transport company.

· In 1998, he negotiated a Z$1.0 million grant on behalf of the Manicaland ZANU-PF from Roger Boka. Of this amount, Z$250,000 went to ZANU Headquarters, Z$250,000 to the 12 Manicaland parliamentarians and Z$500,000 was retained to support provincial development projects.

· Managed Cold Comfort Farm Trust into the ground. The farm was used as a foreign exchange earner for ZANU-PF (flower exports) and source of inputs for Mutasa’s farm (location unknown).

· Was one of a number of politicians who taped the District Development Fund, which was established to undertake projects in communal areas, to do work on his farm in Makoni. DDF spent Z$20,000 to sink a well on the property.

g) Simon Muzenda: Vice President, Republic of Zimbabwe

· Member of Parliament from Gutu North.

· Muzenda launched Philip Chiyangwa’s new company Crittall Hope Group (PVT.) Ltd. in May 1999. He is believed to be a director of the company.

· Muzenda, under the name Simon Vengesai Murefu, is alleged to own Murefu Investments (Pvt.) Ltd. a Grain Marketing Board approved buyer in Zvavhera communal lands. The company owns a hardware, Murefu Investments and Hardware, a filling station, another grain buying company, Chekesai Grain Buyer and pig and dairy operation, Chekesai Pig and Dairy Project. The ownership structure of Murefu Investments (Pvt.) Ltd. is Simon Vengesai Murefu (50%), Theresa Chekai (30%), Vitalis Muzenda (8%) and Adiel Maveni (12%).

· In April 1999 Muzenda was sued by the Commercial bank of Zimbabwe to recover debts of Z$3.3 million issued to his three businesses in Masvingo. The amount due was in respect to overdrafts drawn under an agreement with the bank’s Masvingo branch between 1992 and 1996. Advances included: Z$135,911 to Muzenda’s personal account, Z$448,716 to his grain buying firm, Chikesai Grain Buyers, Z$507,117 to Chekesai Pig and Dairy Project and Z$575,267 t0 Murefu Investment and Hardware. The bank requested full payment totaling Z$ 5.0 million for principal and interest.

· In Feb. 2000, Muzenda again was ordered by the High Court to service his debt of Z$912,798 owed to the Central Africa Building Society. The terms of the court order was that Muzenda was to pay Z$19,500 a month and his property, stand subdivision A of Chomfuli was to be auctioned.

· Deeply in debt, Muzenda apparently linked up with Philip Chiangwa’s proposal to sell petroleum via Sasol International Marketing to NOCZIM (See P. Chiyangwa and John Bredenkamp’s file for more detail).

· In May 2000, Muzenda is implicated in a Z$42.0 million fraudulent loan scheme put together by Prosper Machekere, the owner of Mpundu Holdings. The loans were made by UDC and guaranteed by Enok Chikowere. When payment lapsed, UDC fired two of it bank managers in Harare and Gweru. The bank claimed that they were approached by Muzenda to negotiate an out of court settlement. Muzenda claims he had nothing to do with the loan, which is probably true, and that the bank approached him not the other way around.

· Muzenda is implicated in what appears to be a housing scam in Gutu. Auditors when reviewing the books on the Gutu rural district council found that Muzenda had been awarded stand no. 907 by the council but had never paid for it.

· Muzenda has been implicated with a group of other senior ZANU-PF officials including Minister Joyce Mujuru, Deputy Minister Tony Gara and former Harare mayor, Solomon Tawengwa, in the purchase of industrial stands in Harare’s Prospect Industrial Park (see Tony Gara’s file for more detail).

h) John Nkomo: Minister of Local Government and National Housing

· A Trustee in the Development Trust of Zimbabwe with Dumiso Dabengwa (Minister of Home Affairs), Eddison Zvobgo (Minister without Portfolio, Office of the President), Sidney Sekeramayi (Minister of State Security, Office of the President), and Simon Muzenda (Vice President, Republic of Zimbabwe) – see file on the DTZ for more detail.

· Believed to have received a £3 million kick back for arranging the sale of the Nuanetse Ranch to the Trust (see D. Dabengwa’s file for more details). The funds were deposited in his off shore account.

i) Vitalis Zvinavashe: Commander of the Zimbabwean Defense Forces

· Zvinavashe is the major stockholder in Zvinavashe Investment (Pvt.) Ltd. established in 1990 which operates from the Nyika Growth Point in Bikita and Tynworld in Harare.

· Believed to be R. Mugabe’s front in ownership of land in Harare (Tynworld Housing Development), as well as other property in Mashonaland and Midlands.

· Implicated in the misuse of money from the Zimbabwe Defense Forces Benefit Fund. Rank and file soldiers established the fund in February 1991 as a separate welfare fund to assist military personal to secure houses and to assist aggrieved members or their dependents at times of death and distress. As of December 1996, the fund was valued at Z$36.0m with Z$15.0m in outstanding housing loans for 1,898 residential stands countrywide and Z$ 21.0m in cash. In December 1996, junior officers and lower ranking troops demanded that Zvinavashe explain allegation of mismanagement that where identified in an Air Force audit of the fund. The audit found that 60 senior officers had received over Z$2.7m in unsecured loans from the fund in contravention of the fund’s constitution. The report indicated that Zvinavashe awarded himself an unsecured loan of Z$ 370,165.55. Other allegations indicated that Zvinavashe, the fund manager, had never formally appointed fund trustees, had only called one annual general meeting in 1994 and had not established acceptable accounting practices to follow fund transactions

· Zvinavashe is believed to be involved in managing a portion of Mugabe’s holding in the DRC including agricultural holdings, copper and cobalt mining (firm source) and diamonds. He was purported to have arranged processing of 12,000 MT of DRC cobalt concentrate from Congolese mining conglomerate Gecamines at Mhangura Copper Mines (MCM). The Zimbabwe Mining Development Corporation a government parastatal, owns 54.6% of MCM. At the time. MCM and its affiliate, Alaska Mines, were reported to in financial trouble, incurring losses of Z$276,070 during the 18-month period ending on Dec. 31, 1998.

· According to records maintained by the Ministry of Public Services, Labor and Social Services, Zvinavashe participated in what some critics are calling the looting of the War Victims Compensation Fund. Although holding down the job of Commander of the Army, Zvinavashe was awarded a 55% disability for shortness of breath and arm and leg pain by the fund and given a check for Z$ 224,000.

· Zvinavashe is a Director of Osleg (Pvt.) Ltd., which was established in December 1998 to mine and sell gold and diamonds from the Democratic Republic of the Congo. Colonel Francis Zvinavashe, Vitalis’ brother, retired Major-General Dauramanzi and Brigadier John Moyo manage Osleg’s operations in the Congo. The company, which has four subsidiaries Osleg Enterprises, Osleg Venture, Osleg Mining and Exploration and Osleg Mines, formed a joint venture called Cosleg (Pvt.) Ltd. with Comiex in 1999. Comiex is believed to be Laurant Kabila personal money-spinner. Cosleg in turn formed another subsidiary, the Minerals Business Company, to corner the diamond market in the Mbuji-Mayi area. In addition, Osleg has formed a strategic alliance with an Omani company, Oryx Natural Resources, which is in charge of the alluvial diamond-mining project Sengamines. Sengamines has been awarded half the diamond mining concessions formally held by the DRC parastatal, Miba, in Senga Senga and Tshibwe. The transfer was done without immediate payment to the parastatal. Observers believe that the concessions will be held for speculative profit, not major exploitation, with the concessions being sold after hostility cease for a substantial windfall profit. Other Zimbabweans involved in Osleg are Job Whabira, permanent secretary Ministry of Defense; Onesimo Moyo, Director of the Minerals Marketing Corporation; and, Isaiah Ruzengwe, General Manager of the Zimbabwean Mining Development Corporation. Although Moven Mahachi, the Minister of Defense, has stated that Osleg was established to pay for the war in the Congo, Zvinavashe and his fellow Directors personally hold 2,500 shares each in Osleg. [NOTE: See file entitled “The Structure of DRC-Zimbabwe Mining Concessions” for more detail on the structure of the deal.]

· The diamonds are exported in two weekly air shipments from Kinshasa to Antwerp for resale via an airport in Belgium. The proceeds allegedly go to finance the 13,000 Zimbabwean troops stationed in the Congo (Punch Magazine, May 19, 2000).

· In 1997, one of the subsidiaries of Zvinavashe Investments, Zvinavashi Transport, was awarded a multimillion contract by Zimbabwean Defense Industries to manage delivery of its Z$20.0b supply contract with the Democratic Republic of the Congo army. The five year contract, which began in August 1997, will move an estimated 1.0 million metric tons of tinned meat, meali meal, dried food rations and military gear into the DRC and will earn Zvinavashe Transport over Z$ 200.0m annually if targets are met. Although Zvinavashi Transport only operates a fleet of 15 trucks and trailers, the contract calls for 20 30 metric ton loads to be moved daily. When the contract was announced by Colonel Tshinga Dube, the Director of ZDI, Zimbabwean haulage companies reacting negatively, indicating that the haulage rates quoted in Zvinavashe’s contract, US$135 to $145, were far above the market average of US$ 88 per trip. As of October 1998, the Wall Street Journal reported that US$ 1.0 million worth of goods had been delivered. (WSJ Oct. 9, 1998).

· General Zvinavashe’s brother, Augustine, one of his three brothers not in the military, heads Swift Investments, an import-export company run out of a Harare suburb. The company has won US$10 million is export orders to the Congo (WSJ Oct. 9, 1998).

· In early 1997, the Harare City Council sold 18 ha. of land (stand 6221 and 6579) in Warren Park North to Zvinavashe Investments. The land, valued at Z$ 2.7m, was to be used to build a primary and secondary school. Almost two years later the school had not materialized and allegations were being raised that Zvinavashe had purchased the land not for a school but for a residential development. He denied the allegations stating that financing was the problem.

j) Dumiso Dabengwa: Minister of Home Affairs

· Dabengwa, a Matabele, was formally the MP from Nkulumane. In addition to being the Minister for Home Affairs, he is the Deputy Secretary for Security in ZANU-PF.

· During the 1980’s Dabengwa was best known for his opposition to ZANU-PF’s slide into a Mashonaland Marxist/Leninist state. For his position, the CIO arrested him in March 1982 after arms caches were discovered on several PF-Zapu properties. A the time he held a leadership position in PF-zapu. He was charged with treason and possession of arms of war and subsequently tried and acquitted by the High Court. Following his acquittal, Mugabe ordered Mnangagwa, then the Minister of State Security to rearrest Dabengwa in March 1983 under Section 17 of the Emergency Powers Regulations which allowed the state to detain individuals if it appeared that it was in the interests of public safety and order. Dabengwa was released from Chikurubi Maximum Security Prison in 1986 after three years of incarceration without trial. He is reported to have actively opposed the Unity Accord between PF-Zapu and ZANU-PF in 1987. Following adoption of the Accord, Dabengwa’s views changed radically. As minister responsible for the police, he has not hesitated to unleash special police squads, the “black boots”, to squelch descent. He has made no secret of the fact that police will employ everything at their disposal to quell public demonstrations. This is evidenced in his 1999 during the food riots when he said publicly, “demonstrators risk being shot” by police. In January of that year, he was quoted by a weekly newspaper as saying that the amnesty which the President granted at the end of the problems in Matabeleland was sufficient and an apology, demanded by most Matabeles was uncalled for.

· One of the key players in the Matabeleland controlled Resources Trust of Zimbabwe with John Nkomo (Minister of Local Government and National Housing). The Trust, established by the late Joshua Nkomo in 1989, is the holding company that looks after the business interests of politicians from Matabeleland. It is purported to own significant assets in Bulawayo, has interests in the Beitbridge toll bridge, the Beitbridge Bulawayo Railroad and the Nuanetse Ranch in Mneweze District. The latter nick named the “Million Acre Ranch” was previously run by Anglo-American and is currently use for livestock production. Seed capital for the Trust, £30.0 million, is purported to be from a company called Aberfoil, who facilitated purchase of the Ranch in exchange for use of a part of it for a palm oil plantation. Information on whether or not the latter was established is not known. Joshia Hungwe, the current Governor of Masvingo, Dr. L. Mhlanga, the former MD of Art Corporation and once Managing Director of the Agricultural Development Authority, John Masika (Vice President), and S.K.Moyo, a current MD, are also believed to be associated with the Trust.

· In April 1994, Dabengwa’s tool making company, Matabeleland Tools and Forging Company (Private) LTD. was forced to close when ZESA cut power for non-payment of electric bills totaling Z$74,000. Commissioned in 1991 with the assistance of the Swedish government, the factory was opened by Mugabe in 1992. The plant, which is a joint venture with Swedish RM Pressing of Sweden, is located 45km south of Bulawayo in Esigodini, and manufactures an assortment of tools and forgings. The plant was reopened when the Swedish government intervened and advanced Dabengwa Z$100,000 to settle outstanding bills.

· In 1994, Debengwa is made a trustee and project chairman of the Matabeleland Zambezi Water Project Trust. Although the project had only Z$8.0m in its coffers, it employeed Swedish consultants to carry out a Z$15.0m feasibility study for transporting water from the Zambezi River to Bulawayo. The study recommended that the Z$7.0b project be implemented in three phases: phase one – construction of the Z$500.0m Gwayi-Shangani Dam: phase two – construction of the Z$ 1.7b Gwayi-Shangani to Bulawayo pipeline; and phase three – construction of the final Z$5.3b Gwayi-Shangani to Zambezi River pipeline. By 1997, the Trust entered into a joint venture with Ownes Corning, an American firm, to manufacture glass reinforced pipes in Bulawayo. The pipes, which are new to the Zimbabwean market, are be used to build the pipeline. At the same time, the Trust set up a separate share company, the Matabeleland Zambezi Water Trust (Private) LTD. as the project’s fund-raising mechanism. The company, which was launched in 1998, hired Knight and Piesold (Pvt.) Ltd. to work out an implementation strategy and guidelines for the Z$7.0b financial package required to complete the project.

· Debengwa intervenes in the Luise Miguel Baptesta Gordinko case on the request of Mnangagwa and the CIO. (See Mnangagwa’s file for more detail)

· In 1995, Dabengwa secures a deal with Malaysian-based YTL to build 18,000 homes for the Zimbabwean police. The deal signed in the presence of President Mugabe and Malaysian Prime Minister Dr. Mahathir Mohanad, calls for YTL to source financing for the construction of homes and flats for police personal. The first phase calls for the construction of 1,000 homes in Harare and Bulawayo costing Z$450.0m. In return, the parties mutually agree to cut tariffs that would effect US$81.0m in bilateral trade.

· In 1996, it is revealed that Dabengwa is a shareholder with Col. Dube, the head of Zimbabwean Defense Industries, in Entumbane Manufacturing (Pvt.) Ltd. The company owns agricultural holdings purchased in 1993 (Matopo Vale, Honeydale Estates and one other). Two of the plots, Matopo Vale and an other, were purchased from the Department of National Parks. A senior spokesman for the Department in Metabeleland was surprised to find out that their two plots had been sold. He indicated, “We did not even know that the Chennelles (the former owners of Honeydale and leasee of the two plots ed.) had sold up and therefore had also given up the leases on the land. Honeydale is about 3,400 acres and the two former national park plots cover a further 1,600 acres.

k) Tony Ghara, Deputy Minister of Local Government and Housing.

· Believed to be President Mugabe’s cousin

· Owns a Harare based cosmetics company, Negondo Chemicals (Pvt.) Ltd., which has done considerable business in the DRC since1993. His business dealing in the DRC have in part been conducted through a company called Congo-Duta (Pvt.) Ltd., a joint venture between the Zimbabwean Defense Industries, a wholly owned subsidiary of the Zimbabwean Army, and Congolese General Strategic Reserves (see the note on Zimbabwe's Military Connections in the DRC for more detail on this trading company).

· Gara is a director of several companies, which include Tonks Engineering, Broadway Investments, Oliprint and Kuchi Construction.

· Gara is also the part owner of Cleansing and Environment Services (Pvt.) Ltd. The company won one of five refuse collection contracts let by Harare in 1997. The 10-year contract was for collection in Harare’s eastern townships of Mabvuku and Tafara and was estimated worth Z$3.0 million per year. Although Gara had no previous experience, his teaming with a former city official was enough to win the contract. With the contract in hand, Gara secured a Z$3.0 million loan from Scotfin, a local banking corporation where the government has a large interest. When the city council ‘s cost cutting sub-committee recommended that all the refuse collection contracts be terminated in 1999 because some contractors had inflated their payment claims, Scotfin moved in an attempted to auction off five of Cleansing and Environment Services’ vehicles. Gara claimed his inability to service the loan was due to the city’s non-payment of fees agreed in the contract, a claim, which has some merit. The trucks, however were never put to the block. At the last minute, Scotfin rescinded is order. Sources at Scotfin indicated that they were instructed to cancel the auction by their superiors at the last minute. Bank sources believed that “political muscle” was used to save the vehicles from auction.

· Gara has been implicated with a group of other senior ZANU-PF officials including the Vice President, Simon Muzenda, Minister Joyce Mujuru and former Harare mayor, Solomon Tawengwa, in the purchase of industrial stands in Harare’s Prospect Industrial Park. Gara received his stand (no. 1857) through Negondo Industries, where he is a Director. In April 1999, the City Council declared the acquisition of the stands were irregular because they were obtained in violation of procedures. The land was never advertised for sale and the council had not approved the project. Although the infrastructure on the property had been developed through a Z$9.0 loan from Enda, a local donor agency, the Council found that payments had never been received from Gara and the other allottees. Allottees were invited by the Council’s Finance Committee in March 1999 to renegotiate new contracts to regularize the sale.

l) Joyce Mujuru, Acting Minister of lands and Agriculture

· Wife of Solomon Mujuru, believed to have been divorced or separated 4 or 5 years ago.

· She was implicated in April 2000 in a less that transparent deal to sell aircraft operated by the District Development Fund. At the time, Mrs. Mujuru was the Minister of Water Resources and Rural Development, the parent Ministry for the Fund. The aircraft, four French-made F406 Caravan aircraft, where to be sold to a South African consulting firm, Anthony Reed Consultants, for US$65.0 million. The purchase price, which was substantially below the prevailing market for the aircraft was to be deposited in an off shore account. The award, which did not go through, was privately arranged without going through the normal tender process or with the knowledge of the Fund’s Director, James Jonga (Zimbabwean Independent, April 7, 2000).

· Mujuru has been implicated with a group of other senior ZANU-PF officials including the Vice President, Simon Muzenda, Deputy Minister Tony Gara and former Harare mayor, Solomon Tawengwa, in the purchase of industrial stands in Harare’s Prospect Industrial Park (see Tony Gara’s file for more detail).

· In June 1999 Mujuru’s family company, Earth Moving and Contractor Services (Private) LTD., borrowed Z$670,145 from Boka United Merchant Bank. It is not know if she ever repaid the loan. Boka, however did complain prior to his death that several companies and individuals, including ministers and politicians were refusing to pay him back on outstanding loans.

2. Business Colleagues

a) John Bredenkamp (aka Jon Bredenkamp?): CEO Breco Services, Isle of Man, UK

· Formally in charge of financial affairs for the Rhodesian Defense Forces. For his efforts in sanctions busting, he received a lucrative concession to export Zimbabwean tobacco. He went on to turn his company, Casalee, into a multi-million pound holding company with worldwide offices headquartered in Windsor, UK. In the early nineties, Casalee was alleged to be involved in the sale of anti-personnel mines to Iraq. The Belgians, who investigated the charge, suspected that Casalee was heavily involved with MI5. Ulrich Kohli, a Swiss lawyer, who handled administration for Casalee, has since substantiated this. In 1993, Bredenkamp bailed out of Casalee netting 70 million pounds in the process. He then set up Breco Services, which is owned via an Isle of Man company by family trusts. The boss of Casalee UK remained, Jacobus Coetzee, the former boss of Armscor, the South African apartheid era state arms company. Both Coetzee and Bradenkamp live in the same neighborhood in Sunningdale, Berkshire, UK. (Punch Magazine May 19, 2000).

· Bradenkamp is believed to be partners with Billy Rautenbach in financing schemes through which Zimbabwean’s can invest in the Congo mining sector (See Mnangagwa’s file for more detail). According to Africa Confidential, “Bredenkamp claims he is the leading arms supplier to the Congo”. In April 2000, the House of Lords identified Bradenkamp as a key actor in brokering substantial arms shipments from countries such as Bulgaria to Zimbabwe for probable use in the Congo (Punch Magazine May 19, 2000).

· Bredenkamp, through a company called Zimalzam where he owns an interest, negotiated a delivery contract with NOCZIM through the intermediation of Chris Pasipamire to provide petroleum products to Zimbabwe. Responding to a NOCZIM tender for the importation of 520,000 MT of diesel, petrol and Jet A1, Zimalzam was awarded a US$20.0 million contract to supply 312,000 MT of Diesel. Sasol International Marketing, an Isle of Man registered company that was represented by Phillip Chiyangwa, was to deliver the remainder comprised of 52,000 MT of Jet A1 and 156,000 MT of petrol. Sasol stepped out of the deal sighting the high transport cost associated with the limited delivery and charged that Zimalzam had rigged the bidding. Punch Magazine on May 19th reported that tenders were deliberate inflated. Purportedly, Zimalzam was able to under bid rivals by US$6 to US$8 per MT by providing product without using a letter of credit. Bredencamp put up US$12.0 million to guarantee delivery thus alleviating the use of a LC. On Feb. 2nd, Acting President Joseph Msika informed Simon Moyo, the Minister of Transportation and Energy, and Nicholas Nchube, NOCZIM’s CEO, of the Cabinet’s decision to cancel the Zimalzam contract. NOCZIM reported this to Zimalzam in writing, but rescinded its letter on the same day. Analysts site the quick turnaround to NOCZIM’s realization that Sasol deliveries would not be dependable because Sasol was threatening to cut future supplies because current payments by NOCZIM were in arrears.

· The March 3, 2000 edition of the Daily News ran two stories about the Zimelzam and Sasol International Marketing contracts to supply 520,000 MT of petroleum products to Zimbabwe’s Noczim. In one it mentioned Zimelzam’s Managing Director Chris Pasipamire stating that Zimelzam was a registered Isle of Man company. Previous reports suggest he is associated with John Bredenkamp and his Isle of Man holding company, Breco Services Ltd. The second article quotes a letter from Phillip Chiyangwa indicating that a Jan Bredenkamp is the Managing Director of Sasol International, which has its headquarters in the Isle of Man. The million dollar question is “Is John Bredenkamp and Jon Bredenkamp one and the same?” The difference between the two company’s bids, Sasol and Zimelzam was US$ 40.5 million. The difference was alleged to be due to the fact that Zimelzam’s offer came with a US$12.0 million guarantee (from Bredenkamp), while the Sasol offer did not. Sasol’s bid, however, pledged to build a local system service stations, which would be owned by indigenous Zimbabweans.

· Recently involved in the importation of cell phone blocking equipment used in banks, airports and hospitals to protect on site electronic-equipment from interference. Deal brokered by Phillip Chiyangwa and approved by Che Chimutengwende (Minister of Information, Posts and Telecommunications) for a 20% kick back to the latter. Chiyangwa’s cut is unknown.

· Congolese Military Intelligence impounded an aircraft chartered by Oryx Diamonds from Bredenkamp’s company, Breco Services, in March 2000 after landing at Kinshasa’s Ndjili International Airport with US$16.0 million on board. The money was to be used to pay for wages and operating cost at Oryx Diamond’s mining concession in the Senga-Senga River. See “The Structure of Zimbabwe’s Involvement in the DRC” for more detail on Robert Mugabe, Vitalis Zvinavashe, Moven Mahachi, Kamal Khalfan and Jayant Joshi connections with Oryx Diamonds.

b) Kamal Khalfan: Managing Director, Cater Craft

· Is Oman’s honorary consult in Zimbabwe.

· He has exclusive rights for catering at Harare International Airport.

· Arms dealer who brokered the purchase of armored cars from Brazil in the 80’s. Solomon Mujuru, then Head of the Army, is purported to have received a $3.0 million kick back on the deal.

· Active in sourcing arms for use in the Congo.

· Close to with Sidney Sekeremayi (Director of the Central Intelligence Organization) and Vitalis Zvinavashe (Head of the Army).

c) Roger De Sa, local businessman and restaurant owner.

· A Portuguese/Zimbabwean who owns a local restaurant called Desai’s on Fife Ave.

· Local drinking hole of Emmerson Mnangagwa (Minister of Justice) and Sidney Sekermayi (Minister for State Security in the President’s Office).

· Friends with Che Chimutengwenda (Minister of Information).

· Purportedly involved with Job Wabera, current permanent secretary Ministry of Defense, in an asbestos export deal in Oporto, Portugal. At the time Wabera was the Director of the Zimbabwe Resources Marketing Corporation, the government parastatal that manages all mineral exports except gold. In the case of the asbestos, however, it was purported exported privately by Wabera with Desa setting up the deal on the Portuguese end.

d) Jayant Joshi: Director ZIDCO

· Runs Zidco Holdings (Pvt.) Ltd., the ZANU-PF holding company. Others involved in the company include Manharlal Chunilal Joshi, his brother, Emmerson Mnangagwa, Sidney Sekeramayi, the head of State Security and Dipak Pandya.

· In addition to Zidco, Joshi sits on the boards of a number of ZANU-PF companies - First Bank Corporation, Zidco Motors, M&S Syndicate, Catercraft, Oporto Investments, G. North and Son, Zidam Investments, National Blankets, A.M. Treger Holdings and Star Travel. He also is a director Vimco Chemicals and Rasman Investments.

· Believed to be on the board of Zidco’s London subsidiary, Eagle Investment Co. Many believe that Eagle is Mugabe’s off shore investment banker who is responsible for moving money into Mugabe’s account in the Turk and Cacaos Islands.

· Purported to have close ties with Gidion Gono, CFO of the Commercial Bank of Zimbabwe.

· His daughter, Heena Joshi, was Managing Director of Hazy Investments when the parent company, Air Harbor Technologies (owned by Hani Yamani the son of former Saudi oil minister Zaki Yamani), won the tender to build the new Z$ 5.0 billion Harare International Airport. Ms. Joshi’s responsibilities were to monitor all payment received from Air Harbor to cover local costs and to pay kickbacks to local politicians and businessmen involved in contract approval and implementation. Yamani dismissed her from Hazy in Aug. 1999 for allegedly failing to carryout a professional audit of the company’s books. She contends that she left after Yamani tried to rape her. Following her dismissal, Yamani contends that Air Harbor initiated an audit of Hazy’s books. What was found is summarized below:

ü Two agents were named to handle payments for the project – Tony Kates and Zidco.

ü Kates, was responsible for the payment of all local costs, including fees for Leo Mugabe (US$190,000), under a contract signed by Saleh Miri, the architect who designed the airport, with Kate’s off-short company.

ü Zidco was initially responsible for handling funds for the construction of President Mugabe’s new residence in Borrowdale. Payments, totaling US$1.0 million, were to be made as construction progressed through the offshore account of Jayant Joshi for payment to the Yugoslav contractor.

ü Air Harbors received a US$1.6 million loan from the consortium of companies building the airport. US$1.2 million of this went directly to Zidco through the personal bank account of Jayant Joshi as per the instructions of Mnangagwa and US$400,000 went to Air harbor’s account in Cyprus.

ü In May 1999, Yamani donated US$50,000 of the US$400,000 to ZANU-PF again through Jayant Joshi’s account.

Yamani contends that there h

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