adminbeing accused of defrauding the Government of US$2 billion. They allegedly duped the Government into forming Canadile Miners, a joint venture mining company with an undeserving firm.
The joint venture was approved on the wrong information that Core Mining was a special purpose vehicle on an international mining firm called BSGR that had the capacity to fund the project. Chief law officer Chris Mutangadura told the High Court that a request for mutual legal assistance had already been sent to South Africa.
He was now awaiting the response.
Mr Mutangadura was responding to the defence claims that prosecution had not done anything for the trip.
The trip is set to assist the court in understanding the case through visiting the places that a ZMDC delegation visited during a due diligence exercise.
Their report resulted in the adoption and ratification of a joint venture agreement between Government and Core Mining.
Mr Mutangadura undertook to apprise the court of the progress on the trip arrangements on November 12.
The trial continued yesterday at the High Court with defence lawyers Ms Beatrice Mtetwa and Advocate Lewis Uriri cross-examining ZMDC board member Mr Fred Moyo.
Mr Moyo said he was not sure if the two suspects had committed any offence at law.
He told the court that when he got into office, the minister communicated to the board that Cabinet had already approved three investors including Core Mining. Mr Moyo said all the documents signed between Government and Core Mining had no mention of BSGR and that the agreements were between Core Mining and Marange
Resources. On the face of the documents, Mr Moyo said, BSGR was not party to the agreements.
In the agreements, Mr Moyo confirmed that Core Mining was never mentioned as a special purpose vehicle for BSGR. He said the agreements were ratified and adopted with knowledge that BSGR was not a party.
Mr Moyo said the US$2 billion would have been paid over the life of the agreement and that the exhaustion of the diamonds would mark the end of that life. But he confirmed that the agreement was terminated after Canadile had just started mining.
The same resources, he added, were still being exploited by others and that they were not yet exhausted.
Mr Moyo said at the time the agreement was terminated, Core Mining could not have brought in all the US$2 billion considering that it was just starting operations.
He confirmed that the members of the team that went to South Africa on a due diligence trip saw for themselves and heard for themselves before ratification and adoption of the due diligence report and the shareholder’s agreement. He said it was incorrect to allege that Mr Mubaiwa induced the signing of shareholders’ agreement.
Mr Moyo’s testimony marked the end of the State’s list of witnesses but Mr Mutangadura would close the prosecution’s case after the South Africa trip.
Online Reporter