PRESIDENT Robert Mugabe’s revelations that former Zimbabwe Mining Development Corporation (ZMDC) chairman Goodwills Masimirembwa demanded $6 million from a Ghanaian investor has opened a can of worms with a senior official at the West African diamond miner confirming the transaction.
Everson Mushava Chief Reporter
Manson Mnaba the chairman of Gye Nyame Resources (GNR) yesterday revealed that Ghanaian investor William Ato Essien brought $5 million cash into the country, which he claimed he gave to Masimirembwa.
In an exclusive interview with our sister paper, NewsDay, Mnaba — a Zimbabwean land developer — said Essien showed him a declaration receipt showing he had brought $5 million cash into Zimbabwe.
The GNR is a joint venture between the ZMDC and Bill Minerals, which is owned by Essien.
The company was established in 2011 when the initial survey and pegging of the Block G concession in Marange was completed.
However, Mnaba said he did not know if Masimirembwa actually received the money since this happened three years ago.
He said he only assumed the chairmanship of the company in March this year.
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“I don’t know whether Masimirembwa received the money or not. What I saw was a declaration of funds at the port of entry,” Mnaba said.
“That is the money that is purported to (have) be given to Masimirembwa and whether he received or not, I don’t know.”
Masimirembwa refused to comment on the matter yesterday, referring all questions to ZMDC.
Jerry Ndlovu, the ZMDC general manager said he could not comment as he was in a meeting.
Mugabe said Masimirembwa got a $6 million bribe from Essein, before threatening him with arrest if he ever visited Zimbabwe.
Mnaba said Mugabe was speaking on a more authoritative and informed position because he had various sources of information.
The GNR chairman said he had sketchy information of what transpired before he joined the company, but it was clear that the joint venture was not negotiated in good faith.
He said the Ghanaian only brought $8 million as capital injection and operational costs, against the $30 million promised in the due diligence and draft joint venture agreement with the ZMDC.
The company, Mnaba said, had to borrow money from two local banks to finance its operations.
He said at the moment, the company was not productive due to lack of funds and failure to comply with the Environmental Management Agency requirements. Workers have gone for over six months without salaries.
“There were loopholes with the joint venture or someone was tampering with it,” he said. “The investor is not committed to the contract that should see the life span of the mine.”
Mnaba said GNR took $4 million loan from a local bank (name supplied). The company then applied for a $6 million loan from another local bank (name supplied), but only drew down $1,2 million.
“I don’t hate Masimirembwa and Essein, but it is the way the joint venture was negotiated that is not good,” he said.
“It is not criminal to give anyone money, but you don’t take the money meant to capitalise the venture. I am more occupied by where the money to capitalise the project is?”
Mnaba said the deal had several loopholes as shown by the failure by the Ghanaian investor to pour in capital for the mining venture to operate.
“When I joined (GNR), I tried to investigate if they complied with the joint venture agreement,” he said.
“The reason is that the mine was badly under-capitalised, they were actually using hired equipment from R Davies. When I tried to engage the Ghanaian, he told me he had been banned for a period of 10 months to come to Zimbabwe.
“He told me that Masimirembwa had told him that he would be arrested if he came to Zimbabwe.
“I’m the one who helped him come to the country where he was told by police Commissioner-General (Augustine Chihuri) that no-one would be arrested. Then at a stakeholder meeting Masimirembwa was asked by (then Mines minister Obert) Mpofu why the Ghanaian would be arrested.
“Masimirembwa referred questions to Essein’s local partner Itayi Munyeza.”
Mugabe said the former ZMDC boss was working with two prominent businesspeople in corrupt activities.
Munyeza, who was working as chief executive officer at First Capital Plus — a microfinance institution controlled by Essien — yesterday denied any link to the issue, referring all issues to Masimirembwa.
“I have nothing to do with it,” he said. “The case is directly linked to Masimirembwa.”
Mnaba said it was baffling how such a big amount of money could be brought into the country in form of cash.
