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Fidelis Munyoro Chief Court Reporter
FINANCE Minister Patrick Chinamasa has urged police to arrest people who swindle depositors’ money through fraudulent investment schemes.People continue to lose money to “investment clubs” that promise phenomenal returns.
Minister Chinamasa’s comments follow reports that a local investment company, McDowells International, could have externalised millions of United States dollars to South Africa where it reportedly bought properties using depositors’ money last year.
McDowells International is owned by Mr Member Chipamba and his wife Linda Dewa. The couple reportedly registered a company called Honey Spruit Investments (Pvt) Ltd in South Africa which they used as a vehicle to buy properties worth over a million US dollars across the Limpopo.
In an interview with The Herald last week, Minister Chinamasa said: “Police should intervene and take swift action on those involved in dirty schemes meant to steal from members of the public.
“Any one taking people’s money through such schemes for personal gain is a fraudster and should face the full wrath of the law.”
Minister Chinamasa added: “It is illegal. It is theft. People should also not be foolish to be taken in by such schemes. You cannot make a fortune over night.”
The Reserve Bank of Zimbabwe has cancelled McDowells’ operating licence and depositors have dim prospects of recovering their money.
The investment firm was placed under judicial management in November last year. At law the depositors cannot sue Chipamba and his wife to recover their money because the couple applied for the company to be placed under judicial management.
In the event the firm is declared insolvent depositors lose their money. A lawyer close to the case told The Herald that McDowells was placed under judicial management at the behest of the directors to evade compensating depositors.
“It is in my view criminal for one to take deposits from members of the public when they were not licensed to do so,” said the lawyer.
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