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Fidelis Munyoro, Chief Court Reporter
FORMER Zinara chief executive Frank Chitukutuku will lose his movable assets and shares in Champions Insurance after a Supreme Court appeal against forfeiture was thrown out for lack of merit.
In a judgment delivered on Monday, the Supreme Court also referred back to the High Court, the matter involving the forfeiture of two mansions in Borrowdale and Glen Lorne suburbs of Harare belonging to Chitukutuku.
The Supreme Court wants the High Court to determine the source of funds for the purchase or building of the upmarket properties.
Chitukutuku had appealed the High Court civil forfeiture order for his properties due to allegations that they were acquired through proceeds of corruption during his tenure at Zinara.
But in its judgment, the Supreme Court remitted the matter back to the High Court for a civil trial to determine the source of funds used to buy the two houses.
This means that evidence has to be led to allow the judge to work out where the money probably came from, and then determine whether the source was legitimate or not.
A three-judge appeal panel of Justice Chinembiri Bhunu, Justice George Chiweshe and Justice Joseph Musakwa unanimously found that Chitukutuku’s appeal against forfeiture lacked merit regarding movable assets and shares in Champions Insurance, but raised concerns about the two immovable properties.
Justice Musakwa’s judgment stated that the lower court’s forfeiture order was justified, but the extent to which tainted funds were used for the immovable properties needed further investigation.
“Accordingly, it is ordered that the appeal in respect of the movables and shares relating to Champions Insurance be and is hereby dismissed,” said Justice Musakwa.
But the appeal over the two houses succeeded to the extent that the High Court now has to determine “the extent to which tainted funds were used in respect of Lot 1 of Lot 3 of Lot 56 A Borrowdale and Lot 3 of Subdivision C of Subdivision B of Subdivision D of Nthaba, Glen Lorne”.
Chitukutuku, who is being represented by his lawyer Mr Jonasi Dondo, argued that he acquired these assets lawfully before the Money Laundering and Proceeds of Crime Act came into effect in 2013, and thus, the forfeiture order was applied retrospectively, violating legal principles.
However, the High Court previously noted that Chitukutuku failed to adequately explain the source of his wealth.
This is not the first time Chitukutuku has faced allegations of corruption.
He was previously accused of swindling Zinara of over US$3 million during his tenure as chief executive and was prosecuted and acquitted of charges of criminal abuse of office, fraud, bribery, and money laundering.
But although there was no proof beyond reasonable doubt for a criminal conviction, the courts have found in the civil cases that it was probable that the money used to buy at least some assets was tainted, the only remaining dispute being just how many of the assets.
The State represented by Mr Chris Mutangadura is seeking to take over assets, valued at around US$20 million, which they believe were acquired through illicit funds.
Chitukutuku’s case underlines the importance of transparency in asset acquisition, particularly for high-profile individuals. The outcome of this case sets a precedent for future corruption cases in the country.
Online Reporter