Online Reporter
Fidelis Munyoro
Chief Court Writer
THE trial of businessmen Moses Mpofu and Mike Chimombe, accused of defrauding the Government of US$7 million under the Presidential Goat Pass-On Scheme, resumed yesterday with Mpofu testifying on the difficulties faced by their company, Blackdeck Pvt Ltd, in fulfilling the contract.
Mpofu, appearing in court, described how Blackdeck Pvt Ltd, also operating as Colenso Farm or Blackdeck Livestock and Poultry Farming, struggled to execute the agreement to supply over 600 000 goats to the State.
He recounted the financial turmoil that ensued after the Ministry of Agriculture, Lands, Water, Fisheries, and Rural Development advanced the company ZWL $901 million, backed by a MetBank guarantee for US$26 million, which constituted 30 percent of the total contract amount.
According to Mpofu, the arrangement unravelled when MetBank cancelled the guarantee, citing the Ministry’s breach of the agreement’s terms.
Reading from a letter addressed to the Ministry, Mpofu explained that the bank declared the guarantee null and void, recalling it entirely.
The letter emphasised that the guarantee would remain invalid even if it was not physically returned to the bank.
Efforts to resolve the matter with MetBank failed, prompting Blackdeck to seek financial backing elsewhere. Mpofu testified that First Capital Bank eventually provided a fresh guarantee after conducting due diligence.
However, the collapse of the MetBank guarantee had already caused significant disruption, said Mpofu, as the company could not access the ZWL $901 million previously deposited, which was depleted by bank charges and a 5 percent penalty.
“After the MetBank deal fell through, the Ministry informed us they had secured some funds and were prepared to pay the balance. However, they were prevented from making the payment due to the cancellation of the guarantee,” Mpofu said.
He further testified that Blackdeck informed the Ministry of their new arrangement with First Capital Bank. Despite this, the State deposited only ZWL$598 million into Blackdeck’s account—an amount Mpofu said was far below expectations.
“The amount was insufficient to launch the project. We acknowledged receipt of the funds but made it clear to the Ministry that it was inadequate to meet the project’s requirements as initially agreed,” he said.
Despite the shortfall, Mpofu emphasised the company’s commitment to the national project. “As a company, we resolved to proceed, recognising the importance of this initiative under the Presidential Scheme,” he said.
The court heard that Blackdeck transferred portions of the funds to three agents—Cedar Farming, Nomilster Enterprise, and Milytek Enterprise—to facilitate the project.
However, the Reserve Bank of Zimbabwe’s Financial Intelligence Unit intervened, freezing the accounts of Blackdeck and its agents over allegations of sourcing foreign currency on the black market.
Mpofu disclosed that Cedar Farming, which received ZWL$ 160 million, delivered only 750 goats by the time the accounts were frozen.
The prosecution alleges that Mpofu and Chimombe fraudulently secured the tender to supply 632 001 goats by submitting forged ZIMRA tax clearance and NSSA compliance certificates. The trial continues tomorrow.
