A LOCAL fuel company, First Oil, which was accused of defrauding CMED of $3 million in a botched fuel deal, has in turn accused ZB Bank and its two officials, Phanuel Kapanje and Kiliana Bangure, of misappropriating the government’s cash and has applied to have the latter joined in the civil suit at the High Court.
BY CHARLES LAITON
Sometime this year, CMED filed a lawsuit against First Oil and its directors, Maxwell William Katunga, Lynon Gilbert Katunga, Alex Kudakwashe Mahuni, Gavin Allen Katunga, Davison Mhaka and Brian Manjengwa, accusing them of swindling the government of $2,7 million in a fuel deal.
However, as the matter was taken to court and in a bid to clear its name, First Oil carried out investigations and established that the money, which it was alleged to have swindled, was in fact, allegedly embezzled by ZB Bank, its finance director Kapanje and Bangure.
“The first defendant [First Oil] hereby prays for a stay of the present action pending the third party joinder of ZB Bank Limited, Phanuel Kapanje and Kiliana Bangure under rule 93 of this Court’s rules,” the company said in its supplementary heads. “These persons must indemnify the 1st defendant from any judgment that this Court may enter against the first defendant.”
In its narration of events, First Oil said prior to the agreement with CMED on the fuel deal, it had never banked with ZB Bank, but it opened an account with the bank at the instance of the latter as the provider of funding in a structured finance arrangement.
The firm said it later transferred, through ZB Bank, the sum of $2,7 million into its account with the same bank at the Avondale branch and gave the latter strict instructions not to release the cash to the fuel suppliers until given the green light to do so, but contrary to the instructions ZB Bank acted otherwise.
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“The first defendant executed an MT [money transfer] 103/23 instruction to ZB Bank Limited to transfer $2 360 000 to Micro Petroleum Inc in Hong Kong as the purchase price of the plaintiff’s diesel consignment. The effect of the instruction was that the bank would not release the money until confirmation of the satisfaction of the terms of the contract covered by the structured finance agreement,” First Oil said.
“On the basis of ordinary banking practice and custom, ZB Bank Limited was enjoined to not to effect transfer to Micro Petroleum Inc until the first defendant had confirmed arrival of the diesel consignment at Msasa, Harare.
“ZB Bank Limited deliberately ignored the MT 103/23’s requirement to await confirmation of delivery and effected an EFT [electronic funds transfer] and immediately effected transfer to Micro Petroleum Inc.”
The firm further said ZB Bank allegedly ignored the MT 103/23 instruction because Kapanje and Bangure had an existing arrangement with one Richard David Myburgh of South Africa, “to defraud” First Oil of the funds.
“Kiliana Kapanje and Phanuel Bangure colluded with Richard David Myburgh to immediately transfer the funds to Hong Kong to credit of Micro Petroleum Inc’s nominated beneficiary, EBG Hong Kong, a bureau de change.”
First Oil further said from EBG Hong Kong, the money was allegedly transferred to an account with ABSA Bank in South Africa from where it was subsequently transferred into several persons’ accounts, including one PV Sachar, who got R7 million.
“PV Sachar transferred the money to another account with FNB Bank South Africa. From that FNB Bank account, R4 000 000 was transferred to Kiliana Bangure and R3 000 000 to Phanuel Kapanje,” First Oil said.
“The first defendant is a victim of the breach by its bank of the duty of care. ZB Bank Limited and Phanuel Kapanje and Kiliana Bangure are directly responsible for the 1st defendant’s failure to discharge its obligations to the plaintiff.”
First Oil is being represented by Advocate Lewis Uriri instructed by Guwuriro & Partners as the matter is still pending at the courts under case number HC5348/15.
