Suspended Zimbabwe Mining Execs Said to Have Played Money Market

Banking sector sources said the executives, accused of looting US$40 million
in gold and diamond proceeds, used part of the money to invest in
fixed-return securities

Gibbs Dube | Washington 24 August 2010

Four executives of the state-owned Zimbabwe Mining Development Corporation
accused of diverting tens of millions of dollars in mineral receipts are
said to have invested some US$9 million in the Harare money market even as
related state-controlled firms were in collapse.

Banking sector sources said the executives, accused of looting US$40 million
in gold and diamond proceeds, used part of the money to invest in
fixed-return securities.

The sources said various sums were invested at Interfin Bank, Fidelity Asset
Management, Kingdom Bank, Premier Asset Management and Premier Bank between
March and April of this year.

They said ZMDC Chief Executive Dominic Mubayiwa, Finance Director Robert
Karemba, Group Technical Services Manager Albert Chitambo and Corporate
Secretary Tichaona Muhonde made the investments while some state-controlled
mines were closing for lack of operating capital.

Economist James Wade said the four could have realized huge profits as
Harare money market interest rates are considerably higher than in most of
the world.

Economic commentator Bekithemba Mhlanga said the investments allegedly made
by the executives were relatively risk-free as the funds were put into bank
money market instruments.

Elsewhere, Shabanie-Mashaba Mines owner Mutumwa Mawere said government has
not yet returned his asbestos mining property though he was released from
so-called specification two months ago for allegedly having illegally moved
foreign currency offshore without state approval in 2006.

Mawere said he is in touch with the government on the return of his assets,
but said he has had no encouragement. But critics said Mawere should not
expect the return of his industrial assets as he has been dumped by former
ZANU-PF cronies now focused on business indigenization.

Sources said his assets continue to be held under the Reconstruction of
State Indebted and Insolvent Companies Act. The state administrator of
Shabanie-Mashaba Mines, Afaras Gwaradzimba, said recently that
reorganization of the mines would continue despite Mawere's despecification.

Mawere told VOA reporter Gibbs Dube he wants his assets back even if he
remains abroad.

Economic commentator Walter Nsununguli Mbongolwane said Mawere has no reason
to cry foul as he was part of the ZANU-PF apparatus that brought about the
collapse of the economy.