ONE of the diamond mining companies in Chiadzwa, Jinan Mining Private Limited, could have externalised about $450 million that came from the Chinese investor, Anhui Foreign Economic Construction (AFECC), under the pretext that it was investing in equipment. A local bank acted as a conduit to wire the money out of Zimbabwe through Botswana banks. Jinan deputy general manager, Tapiwa Goronga, told the Parliamentary Portfolio Committee on Youth, Indigenisation and Economic Empowerment chaired by Zanu-PF MP for Gokwe-Nembudziya, Cde Justice Mayor Wadyajena, that the matter was under investigation by the police Serious Frauds Section.
It also emerged that there were two companies using the same name, Jinan Mining Private Limited, after partners in the Joint Venture Agreement, Marange Resources and AFECC, agreed to use the name of an already existing company registered by the latter though they were operating different bank accounts.
Cde Wadyajena said they received information that the company had externalised about $500 million, so his committee wanted to know the reasons behind the action.
He said they wanted to know if the money was not part of the $15 billion that is alleged to have leaked from diamond sales. Responded Goronga: “The issue of the $500 million, yes we have heard about it and this issue to my understanding is under (Police) Serious Frauds Squad so to comment on the issue which is under Serious Frauds Squad, I don’t think it will be proper because I have also written a statement to that effect.”
But MPs asked Goronga to confirm if they had transferred money to a bank account in Botswana. “I don’t know the account in Botswana. Jinan Mining Private Limited does not have an account in Botswana.
“What I want to clarify is that the name Jinan Mining Private Limited is a company that was formed by the other shareholder (AFECC) before Jinan which is mining in Chiadzwa was inaugurated. So we have two Jinans here.
“The monies, which were coming for investment in Zimbabwe from AFECC, were coming through this account which is called Jinan Mining which is not Jinan Mining Private Limited,” said Goronga. However, Cde Wadyajena said documentation in their possession indicated that the bank account belonged to Jinan Mining Private Limited contrary to Goronga’ submissions.
But Goronga said the other Jinan Mining company had a separate account from the one operated by the joint venture agreement. According to a bank statement operated by Jinan Mining Private Limited gleaned by our sister paper, The Herald, the company received about $420 million from AFECC but transferred about $380 million under the pretext of investment.
The company then paid about $50 million to AFECC’s subsidiary company in Zimbabwe called Sogecoa Zimbabwe. The bank account was opened on January 3, 2013, with $50 million but the company transferred $40 million to Sogecoa Zimbabwe five days later before transferring another $4 million to the same company on January 10, 2013. On January 17, 2013, Jinan transferred another $2,9 million to Sogecoa Zimbabwe.
Jinan Mining (Private) Limited, mining diamonds in Chiadzwa, then deposited into the Jinan Mining Private Limited bank account $3 million on January 31, 2013, $7 million on February 1, 2013, and another $3 million on February 5, 2013. The company transferred another $1,5 million to the same account on February 22, 2016.
But Jinan Mining Private Limited transferred about $1 million to Sogecoa Zimbabwe again on February 26, 2013. Jinan Mining (Private) Limited deposited another $8 million into the same account on April 11, 2013, before $7 million was immediately transferred on the same day under pretext of investment to a suspected Botswana account.
The company then transferred another $12 million to the same account under two different transactions of $6 million on April 19, 2013, before transferring $800,000 to Sogecoa Zimbabwe. Several other deposits were made into the account but the money was immediately transferred under the pretext of investment.
For instance, Jinan Mining (Private) Limited made three transfers into Jinan Mining Private Limited account on May 27, 2013, with transactions of about $9 million each. However, two days later, the company transferred $16 million and $11 million under the pretext of investment again.
Jinan Mining Private Limited also transferred $11,5 million and $15 million on June 3, 2013, to the same investment account. On June 7, 2013, the same company transferred another $14 million to the same investment account before transferring another $13 million to the same account three days later.
Jinan Mining (Private) Limited made three other transfers to Jinan Mining Private Limited on June 27, 2013, of about $8 million each. On July 2, 2013, $12 million was transferred to the same investment account with another $6 million transferred to the same account two days later before another $6 million was transferred to the same investment account on July 5, 2013.
Two million dollars was then transferred to the same investment account on August 30, 2013, before about $8 million was transferred to the same account on September 03, 2013. AFECC made other transfers of about $16 million on September 9, 2013, but just over $12 million was then transferred to investment account a day later.
On September 16, 2013, AFECC made other three transfers of about $4 million each to Jinan Mining Private Limited but on September 18, 2013, about $10 million was transferred to the investment account again. Several other transfers were made into the account but were immediately transferred to the same investment account running to about $380 million.
Goronga, though, told the committee that AFECC only invested about $140 million into the Joint Venture Agreement. As at July 25, 2014, the bank account had a balance of $1.38 million with more than $473 million having been debited while about $423 million was credited into the account.