CMED seeks to recover stolen funds

via CMED seeks to recover stolen funds | The Herald 2 September 2014 by Peter Matambanadzo

CMED (Pvt) Ltd has instructed its lawyers, Musunga & Associates, to file a lawsuit against the National Oil Infrastructure Company boss, his counterpart at Petrotrade and First Oil Company directors who are all implicated in the US$3 million fuel scandal.
The State enterprise now wants to recover the money from NOIC chief executive officer Mr Wilfred Matukeni, Petrotrade chief executive Mr Tanaka Sikwila and First Oil directors Alex Mahuni, Maxwell Katunga and Alloys Nyamadzawo.

CMED is also suing its managing director, Mr Davison Mhaka, and fuels manager Mr Brian Manjengwa, who are both on suspension pending disciplinary hearings.
This comes after the trial of the three First Oil directors, which had been set for August 21, failed to start.

The three were arrested in July and are yet to appear in court on charges of fraud after they allegedly received US$3 million for diesel from CMED earlier last year, but never delivered the fuel.

The three are now being jointly charged with Mr Mhaka and Mr Manjengwa.
Matukeni and Sikwila are accused of misrepresenting to CMED that they had i n storage three million litres of diesel on behalf of First Oil at Msasa depot when they knew they did not have the commodity.

CMED board chairman Mr Godwills Masimirembwa yesterday said the criminal matter was in the hands of the Prosecutor-General, but the board was pursuing another avenue to ensure that it recovered the stolen funds.

“For us as the CMED board, our focus is on the recovery of the US$2,7 million and interest charges we have suffered, which pushes the amount to about US$4 million,” Mr Masimirembwa said.

“So, we have instructed our lawyers to issue summons against the CMED managing director and fuels manager Mr Wilfred Matukeni of NOIC and his counterpart at Petrotrade Mr Tanaka Sikwila and all First Oil Company directors in their personal capacity to recover the funds.”

CMED lawyer Mr Aston Musunga confirmed that his firm was preparing the summons.
“Yes, we have been instructed to prepare and serve those implicated in the case with summons,” Mr Musunga said.

The new CMED board headed by Mr Masimirembwa was appointed in June by Transport and Infrastructural Development Minister Dr Obert Mpofu.
Mr Masimirembwa replaced Mr Albert Kamhunga and he is deputised by Mr Seymour Mpofu, a former police assistant commissioner.