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Senior Court Reporter
THE State this week withdrew charges against judicial manager Cecil Madondo where he was accused of selling exclusive mining rights three times to different companies between October and December in 2020, resulting in one of the companies losing US$260 000.
Madondo’s charges were withdrawn before plea when he appeared before Harare regional magistrate Mr Stanford Mambanje.
The State led by Mr Mutsokoti was alleging that Madondo had been appointed by the High Court as corporate rescue practitioner of Redwing Mine located in Penhalonga, Mutare, when he allegedly sold the mining rights thrice.
It was alleged that On October 15, 2020, Madondo told Patricia Mutombgwera and Grant Chitate that he had given their company – Probadeck Investments Pvt Ltd – exclusive mining rights in respect of claims held by Redwing Mining Company Pvt Ltd covering 132 gold mining blocks, eight copper mining blocks and any other mining claims belonging to Redwing Mine.
On October 30 of the same year, Mutombgwera and Chitate, acting upon that information, signed a joint venture relationship agreement with the mining company represented by Madondo believing that their company had secured exclusive mining rights, it was alleged.
Both parties went on to register a tribute agreement with the Registrar of Deeds to operationalise their joint venture agreement.
Probabadek Investments allegedly paid US$60 000 corporate rescue fees into Madondo’s personal company, Tudor House Consultants, and made a capital expenditure amounting to US$200 000.
Sometime in November 2020, Madondo, the State alleged, well knowing that he had ceded all mining rights to Probadek Investments, prepared another memorandum of tribute agreement with Prime Royal Pvt Ltd giving them the same mining blocks which he had ceded to Probadek.
On December 1, Madondo, the court heard, entered into another memorandum of tribute agreement with Betterbrands Mining Pvt Ltd giving them the same mining blocks.
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