METALLON Gold Zimbabwe (Pvt) Ltd yesterday appeared at the Harare Magistrates’ Court charged with contravening sections of the Exchange Control Act after allegedly externalising $31 million.
BY DESMOND CHINGARANDE
The company, which was represented by its secretary, Hapson Makotore, appeared before magistrate Josephine Sande, who remanded the matter to August 30 pending finalisation of investigations.
The State alleges that sometime in 2015, the National Economic Conduct Inspectorate carried out an inspection on Metallon Gold’s affairs following information it was violating exchange control regulations.
It is the State’s case that between January 2009 and December 2009, Metallon Gold Zimbabwe externalised $9,9 million to Redwing United Kingdom (Ltd) on the pretext it was paying for management and services fees, yet no services were rendered.
Between June 2011 and January 2012, the company paid out $5,8 million to Stonhage Trust through Mtetwa and Nyambirai Trust, allegedly disguised as loan repayment, yet there was no such loan.
The State alleged that sometime in 2010, Metallon Gold paid a dividend of $51 000, despite the company having made a loss and it is further alleged that in 2012, the company declared a loss of $25 million, yet it had an operating profit.
It is further alleged that from June 2011 to January 2012, Metallon paid $87 871 to First Atlantic, a company outside Zimbabwe, through Mtetwa and Nyambirai Trust, disguised as a loan repayment, yet again, no loan had been obtained.
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In 2012, Metallon allegedly paid a dividend worth $12,2 million to shareholders, but failed to remit withholding tax payable from dividends paid to no-resident shareholders.
The State also alleges that sometime in 2012, Metallon, without lawful authority of the Reserve Bank of Zimbabwe exchange control, wrote off an advance loan of $7,7 million as non-collectable, thereby, technically externalising $7,717 million, which loan was advanced to its sister company in South Africa.
Sebastian Mutizirwa appeared for the State.
