Mliswa gives notice for refusal of further remand

notice to apply for refusal of further remand if he is not tried next month.
The money was allegedly extended to him as a loan.

Mliswa (39), who is represented by Mr Charles Chinyama, appeared before regional magistrate, Ms Estere Chivasa, for routine remand on fraud charges.
Prosecutor Mr Obi Mabahwana applied to have the matter postponed to November 8. Mr Chinyama gave notice that he would apply for refusal of further remand on that day since his client had been on remand for a long time.

Sometime in April 2008 Government, through RBZ initiated a programme to assist local tobacco merchants who were failing to secure offshore lines of credit to buy green leaf tobacco. As a result of perceived risk, the majority of offshore lenders preferred lending to established tobacco merchants who provided sufficient payment guarantees. New local tobacco merchants who could not arrange offshore lines of credit were accommodated through a memorandum of deposit facility. The facility was a special one, in which, the central bank would advance Zimbabwe dollars to deserving merchants to enable them to buy tobacco from the auction floors. While disbursements from the RBZ were in local currency, the merchant’s obligation to RBZ was in foreign currency, as they would then export the tobacco. The State alleges that sometime in June 2008,

Saltlakes, which is owned by Mliswa through their bankers Premier Banking Corporation, applied for US$15 million to enable them to buy the tobacco. The two parties allegedly agreed on a US$6,5 million facility that Saltlakes was expected to pay back to the RBZ on processing and exporting the tobacco by December 31, 2008. In order for the RBZ to protect itself, they allegedly agreed that an account be opened with CBZ Bank in the care of Dr John Mangudya who would transfer the money to the central bank.

All money received from tobacco sales was to be deposited in the account, it is alleged. In May 2009, Saltlakes allegedly misrepresented to the RBZ that some tobacco had been stolen and some damaged by water. RBZ and Saltlakes then agreed that Saltlakes would pay the central bank US$3,5 million that was to be realised from the sale of the remaining tobacco to Savanna Tobacco. However, Mliswa allegedly did not disclose to the RBZ that Savanna was only going to facilitate sales. On May 6, 2009, Saltlakes asked to use part of the proceeds to purchase more tobacco and agreed that 50 percent of proceeds would be sold for the RBZ.

Mliswa was subsequently paid US$3,5million for the tobacco, it is alleged. Savanna deposited US$1 373 079 45 into the CBZ account before Mliswa instructed them to divert their deposits to other accounts.
The State says Mliswa converted US$1 160 635 65 to his own use. Part of the money was used to offset Mliswa’s personal loan with CBZ, it is alleged.

The State alleges that because of his consistent withdrawals the balance is now US$718 46.
A further US$966 184 90 realised from the sale of tobacco from Savanna is yet to be accounted for.