Kurotwi sues Masimirembwa, top lawyer over $300 000 fraud

Source: Kurotwi sues Masimirembwa, top lawyer over $300 000 fraud – NewsDay Zimbabwe June 21, 2016

BUSINESSMAN Lovemore Kurotwi has filed fraud charges against Harare lawyer Farai Mutamangira and former Zimbabwe Mining Development Corporation (ZMDC) boss Godwills Masimirembwa, accusing them of illegally withdrawing $300 000 from his Canadile Miners’ bank account to pay government legal fees in a matter involving African Consolidated Resources (ACR).

by Everson Mushava

Kurotwi reported the case at Avondale Police Station last week under RRB No 279387 and the matter has since been transferred to the Serious Fraud Squad.

According to Kurotwi, Masimirembwa ordered Mutamangira to deduct $300 000 from his Agribank account in September 2010 after former Mines minister Obert Mpofu ordered that ZMDC, Minerals Marketing Corporation of Zimbabwe (MMCZ) and Marange Resources pay a third each of the $600 000 that was required for legal fees.

The money also covered, according to Mpofu’s letter, Kimberley Processes and Certification issues.

The instructions were made in a letter dated August 30 by Mpofu to chairpersons of ZMDC, MMCZ and Marange Resources, a 100% wholly government-owned diamond mining company before the grouping of all the diamond mining companies under the Zimbabwe Consolidated Diamond Company.

“Your institutions shall bear your one third share of the bill presented and payment of the same shall be forwarded to the account details furnished,” Mpofu wrote.

He identified Mutamangira, T Moyo and F Nyamayaro as the recipients of the $600 000.

But Masimirembwa, according to Kurotwi, ordered ZMDC to pay $150 000, MMCZ ($150 000) and Canadile Miners to pay $300 000, whereas the money was supposed to be paid by Marange Resources.

Kurotwi claims he then wrote to Mutamangira advising him to return the money, arguing it was not his responsibility as an investor to pay for government’s legal battles over the mining claims with ACR, but Mutamangira did not respond.

“I have, therefore, been instructed to advise that our client is of the view (correctly so), that you received, (your firm), the sum of $300 000 that was not due to you from Canadile. Even the honourable minister’s letter instructing that payment be made did not instruct payment of any amount from Canadile. The instruction, (by the minister), could not have been more explicit,” part of the letter to Mutamangira dated January 6, 2011, by Kurotwi’s lawyer George Chikumbirike read.

“While we bear no responsibility, nor blame that Mr Masimirembwa did not follow the minister’s instructions, that fact alone does not absolve your firm from a civil suit at the instance of Canadile, (Core Mining Pvt Ltd) in a derivative capacity.”