admin
distress of the investment, the High Court heard on Friday.
State witness, Zimbabwe Mining Development Corporation chairman Godwills Masimirembwa said this in his evidence during cross examination by defence lawyer Advocate Lewis Uriri.
Mr Masimirembwa is the first witness to give evidence at the ongoing trial of Core Mining director Lovemore Kurotwi and former ZMDC chief executive Dominic Mubaiwa accused of allegedly defrauding the Government of US$ 2 billion.
Adv Uriri had asked Mr Masimirembwa why he was sent by Minister Mpofu to investigate Canadile, a joint venture between Core Mining and Marange Resources.
“Yes, we had a joint venture which was distressed. We set out to investigate issues relating to the joint venture. Even the Zimbabwe Investment Authority had done a report on the joint venture,” Mr Masimirembwa answered.
He said the failure and distress of Canadile had already been raised by ZIA and an adverse report had already been produced by Camelsa Chattered Accountants.
“We investigated how the joint venture was failing to perform and that was the real issue,” Mr Masimirembwa said, dismissing assumptions that investigations were called to settle a score because Minister Mpofu had indicated that there were allegations of bribery communicated to President Mugabe.
Tempers flared in court after Adv Uri accused Mr Masimirembwa of failing to restrict his responses to asked questions.
The presiding judge Justice Chinembiri Bhunu intervened and urged Adv Uriri not to raise his voice and stop quarrelling with the witness.
Adv Uriri questioned Mr Masimirembwa on the termination of employment contract of former ZMDC company secretary and legal advisor Mr Tichaona Muhonde over allegations of misconduct.
He submitted that Mr Muhonde signed an agreement to testify as a State witness after being paid a terminal package of US$121, 253, 43 and 1 480 litres of diesel, among other items including getting his car at US$9 150 and an HP laptop.
Adv Uriri accused Mr Masimirembwa of not being thorough in his investigations saying he had only produced 10 documents out of the 60 that he recovered during his investigations.
“Mr Masimirembwa said he had surrendered all documents that he recovered to the State, which has the prerogative to produce them.
“Some documents we did find, but a document which we didn’t find is the one that you presented yourself through your client. That critical document from your ‘mini ZMDC office’,” Mr Masimirembwa said.
Charges against Kurotwi and Mubaiwa arose between March and August 2009 after they unlawfully and fraudulently made misrepresentations to defraud
Government.
Kurotwi is alleged to have misrepresented to Government that BSGR was the guarantor in a joint venture agreement with Core Mining and ZMDC while Mubaiwa unlawfully prepared and entered into an unapproved Memorandum of Agreement between Marange Resources and Core Mining on July 24, 2009.
Mubaiwa is also accused of acquiring a Cabinet authority to travel to South Africa to conduct a due diligence exercise on Core Mining a shelf company.
In pursuance of this fraudulent shareholder agreement the joint venture began to operate under an already existing company called Canadile Miners which later
failed to make an impact in business. As a result, the State claims this caused actual prejudice of US$2 billion to Government.
The trial continues today.
Online Reporter