Fred is alleged to have milked the unsuspecting victims
through a Ponzi scheme disguised as a collective investment focusing on egg
production and dairy farming investment schemes. The most affected are people
in the diaspora, particularly those based in the United Kingdom, who invested
amounts ranging from $2,000 to $60,000.
The five—Blaman Sekete, Grace Pumhu, Vimbainashe Mahwiridi,
Dr. Ayanda Chakawa, and Felix Witness Mambondiani—who are being represented by
Jacob Mutevedzi of Clairwood Chambers, have made the application, which is
going to be the first of its kind in Zimbabwe, after a breach of numerous Joint
Venture Agreements between Fred and various investors across the globe. If the
leave is granted, Mutevedzi is going to represent over 330 victims.
It is alleged that on different occasions, Fred entered
into multiple contracts with various persons at an agreed capital contribution
for business projects, which were to run for periods ranging from 22 months to
48 months. In return, the investors were each entitled to an agreed monthly
profit share.
Part of the application reads: “This is a perfect case for
the Court to grant leave to institute a class action so that justice for this
class of investors can be achieved in one fell swoop as opposed to a crowd of
plaintiffs seeking similar relief by way of separate actions. Efficiency is the
major attraction, and nothing is more beneficial to the smooth administration
of justice.
“Therefore, there is clear commonality of issues, which
makes it convenient to proceed by way of a class action. The questions of fact
or law to be answered in resolving this dispute are more or less the same.”
According to the application, if the present motion is
granted, the applicants intend to issue notice to other potential claimants
through publication in Zimbabwean newspapers and announcements on radio and
television on three different dates.
In November last year, Fred appeared before Harare regional
magistrate Marewanazvo Gofa facing fraud charges and was granted US$500 bail.
She was ordered to surrender her passport and to report once a fortnight at the
Criminal Investigation Department (CID) Commercial Crime Division (CCD).
However, Fred’s recent actions have squeezed life out of
President Emmerson Mnangagwa’s efforts to lure foreign investors with his
“Zimbabwe is open for business” mantra, and Finance Minister Mthuli Ncube’s
appeal to the diaspora population and foreigners to invest in Zimbabwe. The
diaspora has lost confidence and is now skeptical that its investments will pay
off. The government held a Zimbabwe Investment Summit last week in South Africa
to positively sell the country to the world. Masvingo Mirror
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