Basera testifies in US$7,7m goat scandal

Fidelis Munyoro

Chief Court Reporter

Black Deck Private Limited, a company led by Moses Mpofu, received an advance payment of Z$1,6 billion (approximately US$7,7 million) under the Presidential Goat Pass-On Scheme, but delivered well below 4 000 of the more than 32 000 goats expected.

Mpofu and his partner, Mike Chimombe, now stand accused in a trial before the High Court of masterminding a fraudulent scheme to siphon millions from the rural development initiative.

Dr John Basera, former Permanent Secretary for Lands, Agriculture, Fisheries, Water and Rural Development took the witness stand yesterday to explain how Black Deck Poultry Farming secured the tender to supply the goats.

The Ministry had invited bids for the scheme, attracting submissions from four companies.

Black Deck, offering the lowest bid and so presumably the best value for public money, emerged as the chosen supplier on the recommendation of the evaluation committee. This led to a formal contract signed on November 16, 2021.

Mpofu, acting as operations manager, signed the deal, with Tinashe Chimombe, the sales manager, witnessing the agreement. Metbank guaranteed the transaction.

“The contract included an advance payment clause to enable the supplier to build capacity,” Dr Basera testified.

“We triggered an additional clause requiring a bank guarantee to facilitate this payment. Consequently, we paid Z$1,6 billion, approximately US$7,5 million to US$7,7 million in foreign currency terms.”

Problems surfaced when the expected goats failed to materialise.

Mpofu assured the Ministry in writing that 32 500 goats had been delivered to holding centres for distribution.

But doubts crept in when no goats were distributed. Dr Basera dispatched a fact-finding team comprising ministry officials, auditors, and other personnel.

“The team returned with a report confirming only 3 388 goats were present at the holding centres,” he said.

“This was far below expectations given the amount paid.”

Alarmed by the discrepancy, Dr Basera convened an urgent meeting with representatives from finance, legal services, Agritex, and auditing departments to formulate a recovery plan.

He presented three options: demand a refund from Black Deck, enforce specific performance, or call in the bank guarantee.

Dr Basera also noted Mike Chimombe’s active involvement in the deal.

“In the meetings I attended, Chimombe dominated discussions, drove decisions, and was at the forefront of every conversation,” he said.

The Ministry faced significant losses, including the advance payment, time wasted during the performance period, and the diminished monetary value of funds, according to Dr Basera.

Dr Basera highlighted that discrepancies in the proposed goat pricing raised further concerns.

Initially quoted between US$175 and US$250 per goat, the price was eventually renegotiated to US$75 to US$92, inclusive of transport and mobilisation costs.

The trial continues today with the defence cross-examining Dr Basera’s testimony before Justice Pisirayi Kwenda, sitting with assessors Margaret Chitsiga and Temba Kuwana.

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