NPF boss faces $10 million lawsuit

THE Reserve Bank of Zimbabwe (RBZ) has ordered National Patriotic Front (NPF) spokesperson, Jealousy Mawarire to retract utterances he made at a public debate that the central bank was involved in illicit money deals with a company owned by President Emmerson Mnangagwa’s son or face a $10 million lawsuit.

By Everson Mushava

Last week, while addressing a Zimbabwe Electoral Support Network (Zesn) debate series titled Making Elections Make Sense, Mawarire alleged that illegal foreign currency traders were receiving money from Spartan Investments owned by Mnangagwa’s son Tarirai David.

Through its lawyer, Gerald Mlotshwa, the RBZ has demanded that Mawarire retract his utterances or face a lawsuit.

“It is a matter of record that you stated, not alleged, that a private company Spartan Investments, belonging to the President’s son had an RTGS account with the RBZ. You further stated that it was through, and another company, Makanaka Investments, that the RBZ was engaged in the black market trading of the United States dollar,” he wrote.
Mlotshwa also demanded Mawarire to bring about evidence of transactions by the RBZ regarding that matter.

“Our client’s instructions are that you should provide us, and the general public, with this information before 12 noon, Wednesday 2, 2018.”

Mlotshwa added: “It is manifest, from your statement, and further comments on your Twitter account that this information exist and that you have these details at hand.
“In the event of your failure to do so, and taking account of the reckless and irresponsible nature of your statements, our client will institute the necessary legal action to claim US$10 million as damages from yourself.”

In his presentation, Mawarire said traders were receiving cash as well as electronic money through RBZ from Spartan Investments, which he claimed is owned by Mnangagwa’s son. He also claimed that the other company, which was providing the illicit funding was Makanaka Investments owned by Antony Clever Pote from Zvishavane.

Mawarire later used social media to share documents which he claimed “are snippets of the Spartan Investments docket” at the Zimbabwe Anti-Corruption Commission (Zacc).

But Mawarire in his response to Mlotshwa, threatened to disclose more information regarding the illicit deals which he said were well documented. He said Mlotshwa’s threats were baseless.

“However, as a matter of fact, the Reserve Bank has been central in the creation of the current liquidity and monetary situation. For instance, contrary to the law and normal banking standards, the central bank has allowed central government to run an overdraft facility with it,” he wrote.

“This overdraft facility was meant to finance the huge fiscal demands and uncontrolled expenditure of central government. By allowing this overdraft facility, your client, who, in any event, is under-capitalised, was then forced to unlawfully dip their huge hands into normal RTGS and nostro balances kept by the banking sector.”

Mawarire said it was the RBZ that should apologise to the people of Zimbabwe.

“The management of the country’s economy is surely a public matter that affects every citizen. Neither your client, nor anyone else, has a right to muzzle free speech on an important matter as the economy,” he added.

“I would like to assure you that, while I spent two minutes talking about the RBZ and the cash crisis at the Zesn public forum, I will definitely spend more time on the subject in our next political rallies to make sure the public appreciates the extent of the damage your client’s unlawful actions have done to the economy, the banking sector and the liquidity situation in the country.”

13 Comments

  1. Tell us more Cde if you have the evidence. From my analysis as a reader there seem to be some truth in what has been said. Why is the govt reluctant to sue people in possession of this forex all over the streets. If really there wasn’t anything to hide they should have proceeded to sue this Cde. By merely asking him to retract the statement, I am smelling smthn. All the same I personally don’t have confidence in our Central Bank.

    1. Comment…chii chinonzi forex mu Zim nhaiwe,ane mari yake musiyei please

      1. huuuu ana ANONYMOUS tinokuzivai ndimi vamwe vacho ana huyai tichinje marnds , ma US ndosaka murikusupporta zvisina basa. Mari yake yaawana kupi like for example YOU ANONYMOUS pekugara chaipo hauna, unorara mutown pamaveranda eJet Stores kuseni ndokuona wakabata ma US$100,00 notes matsva unenge waawana kupi ? mubabank chaimo $100US haiwanike iwe waakutaura nonsense. Tibvire apa zvedu. Go Mawarire GO.

  2. Comment…Gerald Mlotshawa is ED’s son in law, fighting for a better performance in the bed.

  3. Surely there’s no way Mawarire would just daydream of these allegations from nowhere. Given the history of the RBZ’s mafia – style activities on the black market from the Gono era, we are not surprised by this

  4. Zimbabwe uses USD so which one is the foreign currency we are talking about? I thought USD us our local currency. Anyway I still think RBZ has a lot to do with cash barons in the streets and some dubious offices in the avenues. Where is the whole money going this is the starting point. They can show us how they use all the USD they have. Ko yakadzorwa iripi?

  5. @ anonymous – foreign currency definition I used is the one used by the current govt when they say we should increase exports in order to generate the much needed foreign currency.

    1. Tirikukuhonai Hedu

      Thank you – no need to elaborate. Well said and on point!

  6. Game on!

  7. RBZ you are going to work Mawarire very popular now, cause this is interesting and your response to him was rush and not wise…sometimes keeping silence is good cause now there are many speculations, and you are sending threats around to a politician really , next it will be to Chamisa when he points his finger at you, and finally to everyone who questions your operations…nooooooo

  8. Why cant they investigate to see if there is no substance in Mawarire’s claims. Yes, there are just too many cash barons ou our street and where are they getting the bond notes and US dollars. Food for thought that.

  9. Ngavatinyararire apo and talk something snsible instead, We have officially adopted US$ dollar as our currency so forex ndeyipi apa. Anyway vakuru ava vanenge vane nyayawo futi vari kutvhunduka kubvondorwa naJerasi uyu hehehe!!
    Ko Gushungo makamupa here ma Cash bhanduru ake please ??

  10. HAHAHA.

    Check out the list that was published by ED after his 100 campaign. Spartan is listed number 23 under the category.

    CATEGORY III: Illicit Financial Flows – Funds externalised to foreign banks in cash or under spurious transactions

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