HomeBusinessZim businessman sues SA investor

Zim businessman sues SA investor


A ZIMBABWEAN national, Ryan Chinyangare, is suing South African firm, Nkosikhona Holdings, for failing to pay him $3 million in consultancy work in securing the controversial ‘CTX Project’ with government earlier this year.


In May, Nkosikhona Holdings, a member of Canadian-based investment firm Magcor, signed a deal valued at $5,2 billion with Verify Engineering, a company owned by government through the Ministry of Higher and Tertiary Education, Science and Technology Development. The project entailed the production of up to eight million litres of liquid fuels per day from coal.

Chinyangare told NewsDay that he had not been paid his dues, leading to him engaging lawyers Mahuni Gidiri Law Chambers to issue a letter of demand to Nkosikhona Holdings chief executive, Jaco Immink, dated October 19, 2018.

“Our client has advised us that on or about February 1 2018, you entered into an agreement in regards to the coal-to-liquid project. The agreement stipulated that you were to pay our client the sum of $3 million upon receipt of the first droll drum, which we are advised was delivered on or about August 2018, wherein same was now entitled to receive payment,” the letter reads.

“Our client has advised us that since delivery of the first droll drum he has made several demands for the settlement of the bill in question. To date the above referred amount remains outstanding despite demand for payment. Our instructions are to demand as we hereby do, payment of $3 million within seven days of receipt of this letter.”

NewsDay is in possession of a copy of the signed agreement between Chinyangare and Nkosikhona Holdings, dated February 1, 2018. A Caroline Makhoro and Vimbainashe Dube acted as witnesses.

On top of the $3 million, Chinyangare is to receive 2,5% of the net profit from the project, according to the agreement.

In e-mailed responses to NewsDay, Immink confirmed that Chinyangare had provided consultancy work and that he was owed money.

“I confirm that Ryan has been an Introductory for the CTX Project at Mkwasine and not Lusulu. One of the main reasons for delay in the process. As the change of location changes the dynamics of a project,” he said.

According to sources, the project was initially set for Mkwasine in Chiredzi before being moved to Lusulu in Hwange after feasibility studies had been conducted.
Immink said he received the letter of demand from Chinyangare, through his lawyers, on October 23, 2018.

“I replied and explained the status of the project and confirmed my commitment to him (I can’t disclose information about the project to you as I am under a non-circumvention non-disclosure agreement) and suggested a round table for discussions, which he agreed to,” he said.

“On November 19, Ryan (Chinyangare) notified me that he had dropped the lawsuit and cancelled the round table . . . screenshots attached as proof.”

This paper is also in possession of chat messages exchanged between Chinyangare and Immink, where the Zimbabwe agreed to drop the lawsuit.

Chinyangare later said he had only agreed to do so out of duress and was still going forward with the lawsuit.

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