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Daniel Nemukuyu Senior Reporter
The fraud trial in which business mogul John Arnold Bredenkamp is accused of swindling a fellow businessman of US$4 million opened yesterday at the High Court. Bredenkamp, who has business interests in various firms locally and internationally, is also accused of breaching the exchange control regulations.
He is accused of misrepresenting to former Sahawi International director Mr Yakub Ibrahim Mahommed that he was borrowing the money to finance his mining operations in the Democratic Republic of Congo when he used the money for personal use and failed to pay it back.
It is the State’s case that after realising that Mr Mohammed could finance him, Bredenkamp in 2001, approached him and requested for a loan which he was given at 6 percent interest per annum, capitalised monthly.
The whole transaction is alleged to have taken place at Bredenkamp’s office at number 124 Josiah Chinamano Avenue, Harare. Bredenkamp allegedly did not pay back until this year, when criminal proceedings were instituted against him.
Bredenkamp is also being charged with borrowing foreign currency from an unauthorised dealer without authority from the Reserve Bank of Zimbabwe.
During the trial, the complainant, Mr Mahommed, told the court that he released the US$4 million without any documentation. The agreement was never reduced into writing resulting in the parties clashing on the terms thereof.
Bredenkamp admitted that he got the US$4,2 million from Mr Mahommed but he borrowed on behalf of one of his companies Kababankola Mining Company in the Democratic Republic of Congo.
The businessman, however, sold the company in 2006 and he denies liability.
In his defence outline, Bredenkamp argues that the matter was purely civil and that there was nothing criminal about it.
He also indicated that there was still a pending civil case at the High Court in which the matter was first raised as civil.
Outgoing Minister of Constitutional Affairs Eric Matinenga, Advocate Deepak Mehta and Mr Innocent Chagonda are representing Bredenkamp while law officers Mr Editor Mavuto, Mr Michael Reza and Mr Innocent Chingarande represented the State.
A team of lawyers from Venturas and Samukange, including Mr Tafadzwa Hungwe, and Mr Dumisani Mthombeni were following the proceedings on behalf of Mr Mahommed.
The court also heard that at some point Bredenkamp promised to pay back the loan after selling the mining firm KMC in DRC but he never honoured the debt.
The company was sold in 2006, but Mr Mahommed did not get anything.
Mohammed is said to have acquired the huge sums of cash through a cigarette manufacturing firm, Sahawi International based in South Africa. The business transaction between Bredenkamp and Mohammed allegedly materialised in 2001, soon after the latter sold his cigarettes within the Southern Africa region and obtained a substantial amount in foreign currency. Mr Mahommed was the first to give evidence in the trial.
Former managing director at Bredenkamp’s KMC in DRC also took to the witness’ stand indicating that he was only informed that Bredenkamp owed Mr Mahommed some money amounting to US$4 million but said he did not witness the transactions.
Former KMC director and accountant Mr Gary Neil Webster also gave evidence.
He told the court that money was brought into the KMC business but there were no records that the money was from Mr Mahommed.
He said the money could have come from several of Bredenkamp’s companies and not from Mr Mahommed.
Asked whether he could deny the fact that some of the money injected into KMC was from Mr Mahommed, Mr Webster said he could not deny.
The trial continues today with more witnesses testifying before Justice Felistus Chatukuta.
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