adminbid to strengthen the defence’s case.
During cross-examination by Adv Uriri — one of the lawyers representing Core Mining director Lovemore Kurotwi and former ZMDC chief executive Dominic Mubaiwa on trial at the High Court for allegedly defrauding Government of US$ 2 billion — Mr Masimirembwa accused Adv Uriri of twisting facts.
Justice Chinembiri Bhunu is presiding over the case.
“You are misrepresenting facts. You are reading conveniently where it suites you,” Mr Masimirembwa said.
He was responding to Adv Uriri’s claims that the ZMDC board was not ready to proceed with the Marange diamond mining project since evaluation of resources had not yet been done.
“The project was going ahead. So to say that the (ZMDC) board was not ready is not correct. This critical misrepresentation is to give Core Mining a status of a company with directors, a board and management while it is a shelf-company and special purpose vehicle for BSGR (Benny Steinmeitz Group Resources),” Mr Masimirembwa said.
He said Kurotwi and Mubaiwa committed fraud after misrepresenting to ZMDC and the Ministry of Mines and Mining Development that BSGR was still Core Mining guarantor in the joint venture when it had withdrawn.
BSGR, a South African-based international investor, intended to fully support Core Mining in all mining activities once the final and binding agreements had been concluded.
Mr Masimirembwa said the agreement that was approved by Government was not the same as the one signed by Marange Resources and Core Mining.
“Core Mining team led by president accused one (Kurotwi) told the ZMDC board that they had a principal investor based in Israel,” Mr Masimirembwa said, adding that the ZMDC board had been advised contrary to what had been presented to Government.
“We are told a new story, a new investor,” Mr Masimirembwa said.
Asked on a meeting held by the then ZMDC board chairperson — Mrs Gloria Mawarire — on August 14, 2009, Mr Masimirembwa dismissed the conclusion saying the board was “misdirected”.
The board, according to Adv Uriri, had concluded that two investors, among them Core Mining, had passed an evaluation exercise.
“This is a misleading conclusion.
“Core Mining is a shelf company with no capacity to mine and finance to operate,” he said, blasting the board for misdirecting itself by conducting a due diligence investigation exercise on a shelf company.
Adv Uriri said the decision by the board was binding and an agreement signed between Core Mining and Marange resources was deemed to be absolute by the board.
“It is misleading . . . it is totally different from what Government approved,” Mr Masimirembwa said, referring to an agreement signed between Core Mining and Marange Resources.
He said the board should have taken the new agreement back to Minister Mpofu, who would in turn take it to his principals.
Mr Masimirembwa said the agreement ceased to be binding because it was unlawful as it was a totally different agreement from that signed and approved by the Attorney-General.
Mr Masimirembwa accused Mubaiwa of having a “mini ZMDC office” at his house after his lawyer Adv Uriri produced a letter purported to have been written to BSGR but was not filed at ZMDC records.
Fraud charges against Kurotwi and Mubaiwa arose between March 2009 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 Cabinet authority to travel to South Africa to conduct a due diligence exercise on Core Mining, a shelf company.
As a result, the State claims this caused actual prejudice of US$2 billion to Government.
Online Reporter