Alleged land baron, Felix Munyaradzi, who was arrested last week, on charges of attempting to defeat the course of justice and interfering with a State witness, is facing fresh allegations of US$14 million tax evasion from a whistleblower who has reported him to the Zimbabwe Revenue Authority (Zimra).
Munyaradzi was first arrested last year on allegations of duping stand seekers in Sandton near Westgate in Harare, but was released on bail.
He is also being accused of obstructing the course of justice and interfering with witnesses in a case in which police Commissioner Erasmus Makodza was arrested and charged with criminal abuse of duty as a public officer.
In another new twist of events, an anonymous whistleblower has since written to Zimra, Office of the President and Cabinet, Commissioner-General of the Zimbabwe Republic Police and the Special Anti-Corruption Unit to investigate Munyaradzi through his company Delatfin Investments (Pvt) Ltd for tax evasion and deliberate non-payment of outstanding taxes from 2013 to 2018.
The Herald is in possession of one of the letters which was written by the whistleblower to the authorities.
“The above subject refers. Delatfin Investments Private Limited, a duly registered company with the Registrar of Companies and the Zimbabwe Revenue Authority, has since 2013 been involved in a well-calculated strategy to evade payment of taxes both Income and VAT taxes,” said the whistleblower.
“Delatfin Investments operates as a property development company, with its main project being the development of Sandton residential and commercial area in Zvimba District.
“The project was developed in three phases, as highlighted below: Sandton Phase 1 approximately 1 200 stands, measuring an average of 1,300 sqm each; Sandton Phase 2 approximately 1 500 stands, measuring an average of 1 250sqm each; Sandton Phase 3 approximately 800 stands measuring an average of 1 250 sqm each.”
According to the whistleblower, Sandton Phase 1 and Phase 2 belong to Zvimba Rural District Council and the sharing ratios were 60:40 in favour of the developer, while Sandton Phase 3 belongs to ZRP Support Unit.
It is alleged that Phase 3 was fraudulently acquired and was not meant for residential development.
“Delatfin Investments (Pvt) Ltd also duped Zvimba Rural District Council by failing to honour the agreed sharing ratios and instead they took the whole area without any payment. Even the commonage amount of 10 percent was never paid to the local government,” said the whistle blower.
“Delatfin Investments sold more 900 residential stands in exchange for motor vehicles as a way of tax evasion. The same vehicles would be used to purchase cattle currently kept at a farm in Norton.
“The motor vehicles were supplied by mainly the following seven car sales (all names of owners supplied).”
It is also being alleged that other residential stands were sold in exchange for machinery with companies called Elimobile Private Limited located in Southerton, Gypsite Electrical Private Limited also located in Southerton and Mazongororo Syringe Manufacturing Company located in Marondera.
The whistleblower alleged that the actual value of all the residential stands sold at a price of US$18 per square metre were as follows: Phase 1 US$28 million, Phase 2 US$33 million, while Phase 3 US$18 million, all totalling US$79 million.
“In 2016, the Zimbabwe Revenue Authority attempted to garnish the Delatfin CBZ and Stanbic bank accounts when Zimra had established a non-compliance of the tax laws and regulations by Delatfin Investments,” said the whistle blower.