ZMDC slams Kurotwi arrest

By The NewsDay | Oct. 24, 2012 | 2 Min read

ZIMBABWE Mining Development Corporation (ZMDC) board member Fred Moyo yesterday told High Court judge Justice Chinembiri Bhunu that the arrest of Core Mining director Lovemore Kurotwi and former ZMDC chief executive Dominic Mubaiwa on fraud allegations was not sanctioned by the parastatal’s board. REPORT BY CHARLES LAITON SENIOR COURT REPORTER

Moyo said he was not aware as to why Kurotwi was arrested in his individual capacity when his firm failed to meet its obligations such as equity contributions according to the ZMDC board’s assessment.

Asked by Kurotwi’s lawyer Beatrice Mtetwa if Kurotwi was informed of ZMDC’s concerns prior to his arrest, Moyo said he would not know whether the issues were raised with him. Moyo also said he would not know why Mubaiwa was arrested, but assumed that the reason could have been that he was ZMDC boss and any wrongdoing would be apportioned to him as its leader.

As the trial continued, it also emerged that the ZMDC board never adopted any resolution to dissolve the now defunct Canadile Miners – a joint venture between Marange Resources and Core Mining. Moyo told the court that soon after the arrest of the ZMDC officials and Kurotwi, the board never sat down to map the way forward on how Canadile Miners would operate, but rather they were advised that it had been dissolved and that Marange Resources had taken over.

Mtetwa asked Moyo why he was not arrested together with other board members and he simply said: “I think because I was not part of the delegation that went to South Africa on a due diligence exercise.”

As the trial progressed, Moyo admitted that when the ZMDC board approved and ratified the two agreements signed between Core Mining and Marange Resources, it did not include Israeli diamond firm BSGR contrary to the State’s assertion that Core Mining claimed BSGR was its guarantor.

On the question of the $2 billion actual investment which Core Mining is alleged to have duped the government of, Moyo said according to the business proposal, Core Mining was supposed to commit $1 billion for the lifespan of Canadile Miners. After Canadile’s dissolution, Moyo said he would not know what happened to its shares in the partnership agreement, but diamond mining was still being done by Marange Resources.

Chief law officer Chris Mutangadura, who is appearing for the State alongside Public Mpofu, hinted Moyo was the last witness as the court was set to visit South Africa for an inspection in loco anytime soon. The matter was postponed to November 12.