‘Minister Mpofu ignored advice’

Daniel Nemukuyu Harare Bureau—
Former Zimbabwe Mining Development Corporation chief executive Dominic Mubaiwa has said he discouraged former Mines and Mining Development Minister Obert Mpofu from entertaining Core Mining as a partner in the Chiadzwa joint venture mining deal because it was a suspicious company. He told the court that he advised Minister Mpofu that since BSGR that purported to be Core Mining’s financier was not clear on its position he should treat the deal with caution.

Mubaiwa explained the consequences of accepting Core Mining when BSGR reportedly preferred anonymity, but said Minister Mpofu did not take the advice.
That, according to Mubaiwa’s lawyers, resulted in the problems that saw the arrest of Mubaiwa and Core Mining director Lovemore Kurotwi on allegations of defrauding the government of $2 billion.

Mubaiwa and Kurotwi are being accused of misrepresenting to the government that Core Mining was a special purpose vehicle of a renowned mining giant BSGR before convincing the government to partner the firm to form Canadile Miners.

The State alleges that government later realised that Core Mining had nothing to do with BSGR and that it did not have the money to finance the project.
To that end, the State claims it lost $2 billion.

During cross-examination of Minister Mpofu in the fraud trial of Mubaiwa and Kurotwi, Mubaiwa’s lawyer Mr Unity Sakhe said Minister Mpofu had been warned against the move, but he decided to recommend the signing of the joint venture.

Minister Mpofu was called to court as the State’s last witness after serious bribery allegations related to the case of Mubaiwa and Kurotwi had been raised against him.

The duo accused Minister Mpofu of framing the fraud charges against them as a way of penalising Kurotwi for disclosing to President Mugabe his demands for a $10 million bribe.

That prompted chief law officer Chris Mutangadura to subpoena Minister Mpofu as a witness.
Mr Sakhe said the minister did not take the advice he got from Mubaiwa and he wrote to the President recommending the signing of the joint venture agreements.

Mubaiwa gave the advice through a report he sent to Minister Mpofu on May 15, 2009.
Part of the report reads: “While BSGR’s desire to remain anonymous may be understandable it will create difficulties in accepting Core Mining a shelf company, without disclosing the muscle behind them.

“There is also risk of misrepresentations when the dominant player chooses to be anonymous.”
Minister Mpofu confirmed receiving the advice, but was not clear on why he did not take it.

The court also heard that BSGR communicated to ZMDC that it would only support Core Mining after certain conditions had been met.
The said conditions were never met.

The trial was yesterday adjourned to next week.