admininto the US$2 billion diamond deal signed between the ZMDC and Core Mining.
Masimirembwa said this yesterday during cross examination by Ms Mtetwa who is representing Core Mining director Lovemore Kurotwi and former ZMDC chief executive Dominic Mubaiwa on trial at the High Court for allegedly defrauding the Government of US$ 2 billion.
Justice Chinembiri Bhunu is presiding over the case.
“It clearly shows that this is a desperate attempt to drag the Honourable Minister into this case. The record speaks for itself he was not part of the due diligence process,” Mr Masimirembwa said.
He was responding to Ms Mtetwa’s question on why Minister Mpofu had gone to South Africa together with a team from ZMDC on a due diligence exercise of Core Mining, a shelf company.
Ms Mtetwa had submitted that it was absolutely “stupid” for anyone to do a due diligence on a shelf company.
Mr Masimirembwa, however, said Minister Mpofu was in South Africa on a different mission.
“It is quite clear (Ashton) Ndlovu and other board members went on a due diligence of Core Mining. The minister was not there. His name is not stated on the Cabinet authority,” he said.
But Ms Mtetwa insisted that the State case was clear that Minister Mpofu was briefed on the due diligence while in SA.
Mr Masimirembwa said: “there was nothing wrong for a minister to be briefed on a due diligence exercise that involved US$2 billion investment into Zimbabwe.”
Ms Mtetwa also submitted that Minister Mpofu and the ZMDC board had misrepresented to President Mugabe and Cabinet in his recommendation on June 22, 2009 before the due diligence process was conducted.
“His Excellency the President would have been misled after recommendation by the Minister and board,” she said.
Mr Masimirembwa, however, dismissed the claims saying it was normal to for an agreement to be subjected to further due diligence within three months of the deal.
Further, Ms Mtetwa also accused Minister Mpofu of directing ZMDC to sign the deal with Core Mining although he knew that it was a shelf company, a claim Mr Masimirembwa dismissed.
“This is a fairy tale because the records at ZMDC are clear. How do you conclude a joint venture with a shelf company without any penny to itself,” Mr Masimirembwa asked?
However, Ms Mtetwa insisted that the Minister had directed that an agreement be signed between Core Mining with or without BSGR involvement.
BSGR, Ms Mtetwa, submitted had opted out of the deal after its requirements were not met.
“You are desperate to involve the minister. It clearly shows the way you are interpreting it. It’s clear that you are trying to drag the minister on a straight forward issue,” Mr Masimirembwa said.
Ms Mtetwa, however, alleged that Minister Mpofu was arm twisting the ZMDC board to implement what he wanted.
“From the evidence of a parliamentary portfolio committee by Mr Masimirembwa’s predecessor (Mrs Gloria) Mawarire, it was established that the ZMDC board took instructions directly from the Minister,” she said.
She accused the minister of having already chosen an investor before any evaluation was conducted.
The defence also accused Minister Mpofu of going along with an agreement (between ZMDC and Core Mining) that had not been approved.
“Months afterwards the minister and board (ZMDC) went along with agreement which you (Mr Masimirembwa) say had not been approved. The Attorney General goes through and okays it,” Ms Mtetwa said.
Mr Masimirembwa said the board was confused and overlooked the fact that the agreement was being signed with a shelf company, which was being guaranteed by BSGR.
Ms Mtetwa submitted that Mr Masimirembwa’s evidence that the board was confused and did not know what it was doing was incorrect as board members knew Core Mining.
Mr Masimirembwa said Core Mining was a sanctions busting entity to be used in the BSGR deal.
Ms Mtetwa also questioned why Minister Mpofu failed to raise questions after the investor changed from BSGR to an Israeli.
The defence submitted that their clients were only arrested after Kurotwi met Minister Mpofu and President Mugabe and disclosed that the minister had demanded US$10 million from him.
“I put it to you that if the first accused one (Kurotwi) did not report to (the) President there certainly could have been no investigations. I also put it to you that the Minister was angry with accused one (Kurotwi) after what he had said to the President,” Ms Mtetwa said.
Mr Masimirembwa said it was a false claim by Kurotwi.
“Allegations were coming from a director of shelf-company with no money and no capacity to carry out mining operations. That’s a fairy tale,” he said.
Ms Mtetwa submitted that if Kurotwi had complied with Minister Mpofu’s demands there would be no prosecution today, a claim Mr Masimirembwa dismissed saying investigations were already underway through the Zimbabwe Investment Authority.
Mr Masimirembwa said how could a “distressed” company, which was borrowing money and failing to raise US$1 million pay the minister US$10 million. However, Ms Mtetwa questioned how it was sheer coincidence that Kurotwi met President Mugabe together with Minister Mpofu and was arrested thereafter.
She accused Mr Masimirembwa of protecting the minister. Ms Mtetwa submitted that Minister Mpofu took advantage of the absence of a ZMDC board and pushed agreements in anticipation of payment from the accused.
She also said Kurotwi was in constant communication with Minister Mpofu and that is why he did not keep any single record of minutes.
Mr Masimirembwa said there was nothing wrong in Minister Mpofu meeting investors, but records show the fraud perpetrated by Kurotwi and Mubaiwa against ZMDC and Government of Zimbabwe.
The trial was postponed to Friday next week.
Online Reporter