THE Zimbabwe Consolidated Diamond Company (ZCDC) chief executive officer (CEO) Mark Mabhudhu was suspended on Monday for reportedly stalling the corrupt purchase of Kuvimba Mining House (KMH)’s 33% shares in Great Dyke Investments (GDI), NewsDay can exclusively reveal.
KMH became part of GDI after acquiring 50% stake from
Afromet Joint Stock Company owned by Russian businessman Vitaly Machitski’s Vi
Holdings.
JSC Afromet pulled out of the Darwendale project in June
2022 after registering displeasure about financial management by its Zimbabwean
partners to Mines and Mining Development minister Winston Chitando.
Mabhudu was suspended by the Munashe Shava-led ZCDC board
for allegedly choosing to travel abroad without first fast-tracking the
purchase of the KMH shares.
A suspension letter dated February 27 partly reads: “The
temporary suspension was meant to ensure that the decisions relating to the
ZCDC/GDI transactions are made in the short turnaround time possible. Despite
you being fully aware of this position which was made in light of this critical
assignment at hand, you proceeded to travel to Thailand.”
Mabhudu travelled to the Asian nation last week following
Cabinet approval.
NewsDay has gathered that the ZCDC board chair is also CEO
and project leader at GDI, the company which Mabhudu is reportedly being forced
to buy shares from without conducting due diligence.
Sources within the ZCDC board confided in NewsDay that
Shava was trying to arm-twist Mabhudhu into accelerating the fraudulent
purchase of shares pegged at US$400 290 000.
Information gathered by NewsDay shows that Treasury
approved the purchase on condition that due diligence is adhered to.
“In line with section 48(3)(c) of the Public Finance
Management Act [Chapter 22:19], Treasury has no objection for the ZCDC to
proceed with the purchase of 33% shareholding of Great Dyke Investment from
Kuvimba Mining house. However, there is need to ensure that the necessary due
diligence is exercised on the pricing of the shares, as well as ensuring that
the necessary approvals are granted as required by the above cited PFM Act
provision,” reads an approval letter from Treasury seen by NewsDay.
Mabhudhu is also accused of refusing to authorise a
contract between ZCDC and the African Banking Corporation (BancABC), who had
been engaged for advisory services as asset evaluators.
BancABC had charged US$2,9 million for advisory services as
well as invoices for any technical and legal experts that would have been
contracted, which Mabhudhu is said to have declined.
The engagement of BancABC as transaction advisory services
also omitted the tender process, raising alarm on the deal.
Mabhudu allegedly told BancABC that the fees were too high,
pursuant to further market research and advised that indications were that fees
for transaction advisory services of that nature required that the transaction
should not exceed US$300 000. Newsday
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