$3m CMED saga: More dirt exposed

Minister Gumbo

Minister Gumbo

Freeman Razemba Crime Reporter
CMED (Pvt) Ltd senior officials allegedly cooked up papers which they presented to the Government purportedly showing how the $3 million in the botched fuel deal was spent, The Herald can reveal.

The Herald has it on good authority that some of the papers submitted to Transport and Infrastructural Development Minister Dr Joram Gumbo were forged and the Zimbabwe Republic Police, with Interpol’s assistance, has since unearthed the scam.

Sources said detectives handling the matter have compiled a docket that has been handed over to the Prosecutor-General’s office for assessment.

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However, National Prosecuting Authority corporate affairs manager Mr Allen Chifokoyo yesterday said they were yet to receive the docket.

“We don’t know the contents of that docket because we are yet to receive it. We can only comment after receiving it and that’s our position as of now,” he said.

Although details were still sketchy, sources close to the investigations yesterday said the CMED managing director Mr Davison Mhaka, who was recently reinstated at the parastatal, was the brains behind the fictitious documents. He is also alleged to have connived with two First Oil directors — Lynon Gilbert Katunga and Alex Kudakwashe Mahuni — to fabricate the documents.

They are alleged to have gone to South Africa where they hired a man to do the ‘job’. The man was recently interviewed by police in Harare after being summoned from South Africa.

According to the documents seen by The Herald, $2,7 million was allegedly transferred to a bank in Hong Kong from Zimbabwe when the parastatal was prejudiced in 2013.

On the manufactured documents, part of the money was indicated to have been transferred to a bank account belonging to company called Micro Petroleum in South Africa from Hong Kong.

The other money was purportedly transferred to another South African ‘company’ called CK Chemicals, which is owned by one David Myburgh, Kiliana Bangure and Fanuel Kapanje.

Bangure and Kapanje are former ZB Bank senior officials who were fired after the scam was unearthed.

According to the fake documents, the other money was purportedly transferred through Micro Petroleum to one M.J Moletsane, Joyce Magosha, C. N Sejanamang, Keith Schwartz, William Mqhakayi and S.L.L Manqele.

Investigations carried out so far revealed that none of these companies exist and that not even a single transaction was made in South Africa.

The money is believed to have been withdrawn in Hong Kong by Mr Mhaka and his other accomplices.

It is also reported that the actual figure that was prejudiced was $3 million of which $300 000 was withdrawn as cash from ZB Bank while the money was about to be transferred to the offshore account.

Only $2,7 million was transferred.

Sometime last month, detectives summoned the man who was paid to manufacture the documents for questioning and he revealed what transpired.

It is alleged that after the CMED bosses discovered that a whistle had been blown, they then filed another lawsuit against First Oil at the High Court last Thursday as they find more ways to cover up.

The similar lawsuit against First Oil was once withdrawn by CMED sometime this year.

Last Thursday, CMED took First Oil to the High Court as they seek to recover $3 976 611 after the fuel firm failed to deliver the three million litres of fuel in a deal they sealed in 2013.

According to the summons that were filed, CMED is demanding from First Oil payment of $2,7m being, a refund of the amount that was paid to the fuel firm as consideration for the supply of three million litres of diesel on March 5, 2013.

The parastatal was also demanding from First Oil $665 000 as payment for damages for the cost of finance and $611 611, 84 being damages for loss of the profit that they would have realised from the sale of the diesel.

The lawsuit also comes after CMED had once filed another claim against First Oil and its directors, Maxwell William Katunga, Lynon Gilbert Katunga, Alex Kudakwashe Mahuni, Gavin Allen Katunga alongside two CMED officials Mhaka and Brian Manjengwa last year.

In November last year, First Oil applied to have ZB Bank and two of its managers joined to the suit, alleging first that the bank made an error when processing a payment instruction and then claiming that the two managers had been part of a set of transactions to swindle First Oil.

First Oil applied to have ZB Bank, its finance director Kapanje and Bangure joined in the civil suit. The company said an undisclosed South African private investigating company had carried out the investigations.

In December last year, the net was closing in on high-ranking officials involved in siphoning $3 million from CMED (Pvt) Ltd through a botched fuel deal with reports indicating that Transport and Infrastructural Development officials benefited from the massive scam.

Dr Gumbo said Government was now “fully aware” of what transpired and all the officials faced imminent arrest.

The botched fuel deal saw CMED paying $3 million for three million litres of diesel through an offshore account to a contracted from, First Oil.

The fuel, bought on the strength of two letters from State petroleum marketer and distributor Petro-trade, has not been delivered to date.

Questions have been raised as to why the money was paid via an offshore account and not through the supplier.

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  • mpengo

    And you say “sanctions… pwe pwe… sanctions… pwe pwe ….Western, imperialists “….

    When all we see is a many in a certain generation of office-bearers with absolute greed, no ethics and no remorse to steal for the Government and the people.

    From all that’s been revealed, its best to assume that ALL, in EVERY State-affiliated institution, have stolen millions and are collectively responsible for crippling the country, worse than “the sanctions”

    Charge them with treason! Take away everything they own!

    Jail them with life, if you’re too weak to sentence them to death!

  • Japana Hapana

    Vozoitwei?

  • http://mafaro.co.uk/ GENERAL MBEZO

    I am not sure about the other details of this story but Kiliana Bangure and Fanuel Kapanje were never fired from ZB..Fanny is still there as i type ….!

    • king king

      This CMED story to me sounds very vague. I don’t know if this journalist did a thorough research before misinforming the public about the true going ons on this matter and the CMED. For instance the ZB Bank officials are still and well employed by the Bank despite these allegations and yet he indicated that they’ve since been fired. The purported interviewed man from SA has not been mentioned in detail on who he is and about what he said. He talks about the Police that interviewed the SA man. Who is this officer that interviewed the Man in question. Allegedly Mhaka went to Hong Kong to withdraw the money in question. Can Hong Kong Prove the same? And if so let them bring exhibits of such withdrawals which will aid the case and conclude the matter by a competent court of law. Did this reporter investigate Mhaka of the same? Did he look at his passport and any other related details to establish his where about around the time the money is purported to have been withdrawn from Hong Kong? Did this Journalist Investigate First Oil Company on both the botched fuel deal and authenticity of the documents that are alleged to be fake??? Mr Journalist please give us something solid. Investigate before misleading the nation with lies and unfounded stories. May be let me help you a little bit Mr Journalist, Goche was then the Minister of Transport…..Go and quiz him for more detail pertaining to this botched fuel deal. Goche will answer all your questions if you quiz him robustly and very well. Once you are done on tjis investigation then come come back re-wright your story properly.There is much detail to this matter than what you’ve brought out to the nation. Lets curb corruption in our country by exposing every dirt being practiced in our country. Be patriotic and feed the nation with the true bread deserving. Our challenge as a country is that despite unearthing corrupt activities no one is taken to prison for a custodial sentence. Look at the Air Zim SAGA, Again Goche was the Minister of the same. Cant you read between the lines Mr Journalist??? Let us all stand up for our country and give it the deserving. Patritism Patriotism Patriotsim please..

  • Talksure Murevi

    Who has ever heard of First Oil? Total, Zuva, Redan and Puma could have been contracted had it been a proper deal. Educate me but is there fuel in Hong Kong? Where was the SPB? Part of the scam I guess. Surely 3million should have been authorised at Perm Sec level who must be the CEO of state enterprises under his/her ministry!!! This is the price Govt pays for sleeping on the job and focusing on castigating US and UK.

    • Ndochii

      You obviously are ignorant of the facts on the ground. This is typical agenda setting story as it is devoid of real research and facts. The ZB bank staff referred are still employed as we speak. CMED did not pay First Oil US$3m but US$2.7 to which the cost of that loan was about US$300 000 which was due to the bank and could not have been withdrawn by anyone other than the bank itself. Internationally recognised procedure for cross boarder crimes don’t just require an invitation by police for a witness but involves several departments eg Home Affairs and Foreign Ministrry requests to SA. (Official Police position is that they have not yet been to SA or interviewed any foreigner and have sited financial constraints to that effect). The money was not paid through an offshore acc but from a ZB local CMED acc and transferred to a local First Oil ZB acc. (No Zimbabwean company produces fuel so eventually an external entity was going to be paid down the chain.) It’s also interesting the reporter makes no effort to mention the involvement of NOIC and Petrotrade letters guaranteeing fuel at Msasa Depot for First Oil and destined for CMED.

  • Ndochii

    Herald where is my comment

  • Ndochii

    You obviously are ignorant of the facts on the ground. This is typical agenda setting story as it is devoid of real research and facts. The ZB bank staff referred are still employed as we speak. CMED did not pay First Oil US$3m but US$2.7m to which the cost of that loan was about US$300 000 which was due to the bank and could not have been withdrawn by anyone other than the bank itself. Internationally recognised procedure for cross boarder crimes don’t just require an invitation by police for a witness but involves several departments eg Home Affairs and Foreign Ministrry requests to SA. (Official Police position is that they have not yet been to SA or interviewed any foreigner and have sited financial constraints to that effect). The money was not paid through an offshore acc but from a ZB local CMED acc and transferred to a local First Oil ZB acc. (No Zimbabwean company produces fuel so eventually an external entity was going to be paid down the chain.) It’s also interesting the reporter makes no effort to mention the involvement of NOIC and Petrotrade letters guaranteeing fuel at Msasa Depot for First Oil and destined for CMED.

    • Talksure Murevi

      Ndochii sounds like an interested party. It is also interesting that after laying your facts you fail to point us to the important fact of CMED taking delivery of the fuel they paid for in 2013!

  • yowe

    The Docket is lost already YOWE!!! Viva Zanu hapana anosungwa worayayi nyika varume that is the mandate

  • yowe

    Arrest some at least! One zvake from these bigwigs who are destroying the country. NSSA, ZUPCO,AIR ZIM, NRZ, PSMAS you want rehabilitation??? R u insane? The law should be uniformly applied. Anoba $1000 gets sentenced vamwe steal millions and nothing happens,Iwe iba tiwone how they will rehabilitate you besides throwing you into Chikurubi. Vanhu ngavasungwe NO APOLOGIES TANETA NEMBWA IDZI