VP Mujuru in $1m scandal

. . . receives illegal cash payments

. . . elbows out, exiles investor

Vice President Joice Mujuru

Vice President Joice Mujuru

Herald Reporters
DETAILS of Vice President Joice Mujuru’s illicit business dealings have begun to emerge amid revelations she received, and signed for thousands of dollars in illegal cash payments from Kenyan and Indian financiers who had invested in the Mujuru family-owned duty-free shops at the Harare International Airport before the VP elbowed out the investors in a manner that bordered on extortion and abuse of office.

Not only did the VP receive cash payments in violation of the Companies Act and income tax regulations, but she also stands accused of having abused her office and political status to compel the lawyers of the aggrieved party to unethically renounce agency in addition to running the investors out of town soon after they had pumped in over $1 million in capital and made tens of thousands of dollars in cash payments to the VP, her daughter Nyasha De Campo and Mr Tirivanhu Mudariki, who is listed as a director in International Travel Shops.

Documents in possession of The Herald show that Vice President Mujuru had interests in duty-free shops at the Harare International Airport trading as International Travel Shops Africa (Pvt) Ltd with Tirivanhu Mudariki as director, along with VP Mujuru’s daughter Nyasha De Campo (nee Mujuru), two Kenyans Mukesh Vaya and Nilesh Ashkal Kantil as well as Babu RM a citizen of India.

Though the VP is not listed among the directors, her name features prominently in the documents.
Sometime in 2011, Africa Duty Free Investments (Pvt) — the proprietors of International Travel Shops Africa — negotiated with Kenyans who have a company called Susan General Trading that is incorporated in Dubai to inject stock and capital in International Travel Shops Africa.

In terms of the agreement, International Travel Shops Africa were to offload 50 percent shareholding, translating to 5000 shares, to Susan General Trading for $150 000 payable to the company, International Travel Shops Africa.

In addition to the 50 percent shareholding, there was supposed to be payment of goodwill payable, again, to International Travel Shops Africa, a loan of $50 000 to shareholders of International travel shops Africa and repayable through dividends, and a loan of $1 million to the company meant for capital injection.

Also read:

Contrary to provisions of the Companies Act, cash payments were made directly to the directors, including VP Mujuru who was not shown on company documents as either director or shareholder.

VP Mujuru, Mrs De Campo and Mr Mudariki each received the payments, which they personally signed for on the documents in our possession, in the following amounts:

  • VP Mujuru: $25 000 on December 30 2011, $25 000 on January 3 2012, and $20 000 on January 5 2012 to make a total of $70 000.
  • Tirivanhu Mudariki: $25 000 on December 30 2011, $25 000 on January 9 2012, $20 000 on January 13 2012, and $40 000 on January 17 2012 to make a cumulative $100 000.
  • Nyasha Noreen Nyorova: $25 000 on December 30 2011, $25 000 on January 3 2012, and $20 000 on January 5 2012 to make a cumulative $70 000.

It is, however, not clear whether Zimra got its dues though indications are the tax laws were violated.
The last cash payment was made in January 2012, but less than a month later after the consummation of the agreements and payment of cash and loans were made, Mr Mudariki on behalf of the shareholders of the International Travel Shops Africa began complaining that Susan General Trading, who had been given a management contract, was not properly running the affairs of International Travel Shops Africa.

In a letter dated February 29 2012, copied to VP Mujuru, Mr Mudariki expressed International Travel Shops Africa’s “utmost disappointment’’ in the manner in which International Travel Shops was being run by Susan General Trading and voiced their dissatisfaction and lack of confidence in its management team.

It appears from the documents that the directors of International Travel Shops expected a turnaround within a month of receiving their last cash payment, a development industry experts described as self-fulfilling criticism whose intention was extortionist.

‘’This complaint was deliberately designed to wreck the agreement by paving the way to manipulatively elbow out Susan General Trading soon after it made it made cash payments and provided loans and stock that had not been repaid,’’ said an industry source familiar with the case who spoke on condition of anonymity for fear of political reprisals.
In consummating the agreement, Susan General Trading was represented by Musunga and Associates. When they were being controversially elbowed out, Susan General Trading cried foul and initially sought arbitration in accordance with the agreement.

But as relations irretrievably broke down and the disagreement escalated, the directors of International Travel Shops went political by invoking VP Mujuru’s name, and Musunga and Associates — who had represented Susan General Trading since 2011 — wrote a letter dated April 15 2013 to Susan General Trading unethically renouncing agency citing alleged conflict of interest saying they also represented Zanu-PF of which VP Mujuru is a senior leader.

‘’We refer to the above matter and herein advise that we will not be able to represent you in the above matter. We had hoped that the matter would be resolved amicably but the turn of events suggest that the parties are all geared to fight it out.

‘’Our firm represent the Zanu-PF in a number of cases and we note that our Honourable Vice President Mujuru is one of the parties. We, therefore, have a clear conflict of interest and we regret to advise that you will have to retain another firm of lawyers,’’ reads the letter from Musunga and Associates which clearly confirms VP Mujuru’s involvement in the matter which industry sources say is scandalous and illegal.

According to the documents, the lawyers had always known from the beginning that VP Mujuru had an interest in International Travel Shops.
Musunga and Associates, thus, effectively dumped their client and began representing VP Mujuru in the dispute raising very serious questions of unethical conduct on the part of the lawyers in a bid to protect VP Mujuru and to assist the extortionist elbowing out of Susan General Trading who as a result are said to have lost over a million dollars.

‘’Because of the controversial and unethical renunciation of agency by Musunga and Associates, Susan General Trading were left without legal recourse, were politically intimidated and threated and they ended up fleeing their investment and the country’s jurisdiction, and have not come back into Zimbabwe since then,’’ said an industry source.

A legal expert, who also spoke to the Herald on condition of anonymity in light of the ongoing interview for High Court judges, described how Susan General Trading was treated as a clear case of abuse of power and office.

‘’This is a very serious example of extortion, and abuse of office and political status. Although the case raises eyebrows, it is only a tip of iceberg. There are other similar cases whose corruption stinks to high heaven from an extortionist point of view’’.

Efforts to get comment from Musunga and Associates, Mr Mudariki and Susan General Trading were unsuccessful last night.
During her highly subscribed “Meet the People” rallies in all 10 provinces, First Lady Amai Grace Mugabe rapped VP Mujuru and called on her to resign or risk being fired for alleged corruption, abuse of office, extorting shareholding from companies and demanding 10 percent bribes from potential investors.

 

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  • totokikimumu

    to hell. sour grapes!

    • Mamvemve

      “Any fool can understand this, so she cannot call for the resignation of the VP. She is not in the structures. She has no powers to say the VP should resign.”

  • joemuda

    Naye naye VP wedu. Haa mai Mujuru vamakwa, hameno vakapedza gore rino.

  • Aljezeera-Alshabab

    Daggers out for VP. Hapachina chakanaka

  • Observer

    If you want us to take your “expose” seriously, give us an objective & thoroughly investigated analysis not vendetta fuelled & agenda driven allegations. Mujuru 2018 (or earlier)

  • Truth seeker

    Figures.. get rid of her. She is unprincipled and basically stupid, and incompetent, like the MDC dogs who were clapping for her.

    • Tofara

      Do you think if you comment without being abusive you will not have made your point clear. Truth seekers are always humble as they methodically seek the truth in a massive misinformation, propaganda and and plain lies.

    • chiwoo

      WELL SAID

  • Bvunzawabaya

    Heeee Hokoyo–zveshuwa here VP dzobayana mudanga

  • gerro

    Mai Mujuru is the dumbest of all the dumb ar**** in mdc, no wonder they were cheering on one of their own

  • muchaka

    know wat just go ahead chase her fm the party mamuona JTR ndiye mutadzika , vamwe veese vatsvene tsvene vakachena kwazvo , ngavapinde mudenga dzvene!

  • observer

    if things really have to be fair, INVESTIGATIONS SHOULD BE DONE ON ALL POLITICIANS with access to public funds

  • Hacha Ndizvo (Dr)

    She has nothing to answer to. The company does not belong to her – we have not been told how many shares she owns. The person to provide the answers are the registered directors.

    • Cde Mgagao

      If she had no shares what was the money she rcvd for in the sinister transactions as reported.

  • Sly

    There are times when you do not need to argue with the fools otherwise the people will not notice the difference. People who know Economics and business cannot easily buy this story as it has a lot of technical flows.

  • Nehoreka weDande

    Good job Herald. I see the documents date back to 2011 and you are revealing now. So did you know all this time or you just gt hold of documents now?Lets say its investigative journalism, did you target the VP or we will see more politicians being investigated?..i doubt that

    • Mukotami

      All will be scrutinised, But for now kwa VP ndoo kumateru, now that the ZPF cloud of protection is leaving her (the same way it will leave those currently covered), we have to move in quickly and expose all shenanigans. Minus one problem. One day tichakunda senyika

  • mpengo

    Nah it isnt that you narrow minded dolt. Its the fact that it is selective. WE WANT ALL EXPOSED!

    We cant be drawn into your silly factional fights

  • BHUTSU

    This is bad how come we didnt get a chance to bid for those airport shops

  • sitho

    A corrupt person is bad to our country. If she is really corrupt why supporting her? There are so many corrupt people in authority and the more we keep supporting them the more we are to suffer. Please my option is if she is as corrupt to this extent pasi nawo VP wacho. Ava vanosupporter VP ava vari vatungamiriri varimowo muhuori imomo. Ndibvunzewo avo veMDC kuti chavari kusupotera mai Mujuru chii? Ngavachenjere kurasika gwara ravo veChinja ava. We are tired nevanhu vane huori.

  • chiwoo

    WELL SAID. MDC SUPPORTERS ARE THE ONES WAFFLING NONSENSE. AN EMBARGO HAS TO BE PUT TO THIEVES AND IF VP IS ON THE WRONG SIDE OF THE LAW SHE MUST BE APPREHENDED

  • chiwoo

    Slow but sure, VP varikunyura. She could not even defend herself on her graduation. She struggled to say anything tangible. You could tell she was lacking confidence and almost shivering like a drilling machine. I feel sorry for here semunhu aitsvaga kurarama but surely she was abusing office. Unfortunately peeping into president’s office and declaring herself rightful heir to the throne costed her. Akatadza kuziva pekugumira

  • makwinja

    We need to avoid shunning fortune because we do not like tge bearer of the fortune. I would want to put forward some points that should help people outside zpf view these reports. It is common cause that there have been two zpf factions that have been fighting to succeed mugabe for some time now. These groups have been using resources at their disposal to outdo each other. People in thesw groups are zpf to the core so they will use every trick in zpf book to succeed.

    The munangagwa faction controls state media. Its bid to get favourable cover succeeded in patches as witnessed after moyo’s tour of media houses. It is therefore naive to expect state media to cover mujuru faction in good light. The same would be happening to the munangagwa faction if majuru faction controlled state media. To the credit of mujuru faction they seem to have roped in the private media. You only need to have read yesterday’s dailynews and newsday to see how tge papers are now throwing punches for mai mujuru. Imaginary sources crying foul on behalf of mai mujuru in the case of newsday and imaginary analysts pronouncing grace’s bid to remove mujuru a massive flop.

    Another important point is that everyone in zpf regardless of faction is corrupt to the core. The corruption has now permeated the whole of zimbabwe such that if you throw a stone in the air at a crowded place chances are that it will hit a corrupt person. If corrupt people ate to srve time in jail the whole of zimbabwe could end up behind bars. Everyone knows that fighting corruption represents on major step towards turning around the economy. However not evryone who was involced in some sought of corruption will end up arrested. What will happen is that some high profile people will be targeted to send signals that we no longer tolerate corruption.

    Which ever faction that takes power will target people from another faction to send a message that corruption is no longer tolerated. It may target two or three of its own but the bulk will be from the other side and ordinary people as well. This will be the case even if mdc gets into power. It will concentrate on zpf top men and the ordinary men. The most important this is sending a message that going into the future no more corruption.

    While people from mnangagwa know that they also have skeletons in their cupboards they realize that they hold the cards with respect to information about people’s corrupt activities. They have therefore decided to use the two resources of access to information about corruption in zpf and the state media they control to maximum effect.

    When one reads this article about mai mujuru’s underhand deals, even her most diehard supporter will admit kuti pane nyaya apa. Of course spin is thrown here and there to make yhe case serious. For instance the allegation that money for the purchase of shares was supposed to be paid to the company but ended up being paid to directors including mai mujuru is a spin. It is intended to potray that sections 176 abd 177 of the companies act were contravened. Shares are bought from shareholders not compant. Unless it is shown that the foreign company was to inject capital in exchange of shareholding (which result in dilution of exisying shareholders’ stake in the company) the assumption is existing shareholders were to offload 50% of their shareholding in exchange for money. That mai mujueu received a third of yhe money signifies that she is a shareholder in the company.

    Being a shareholder and being a director in a company are two separate things. A director does not need to have sheres in a company for which he is a director; and a shaeholder does not need to be a director of a company in which he is a shareholder. So while mai mujuru is not a director in the company in question it does not mean she is not a shareholder. The fact that she received payment in relation to the offloaded shares proves that at that time she was a she was a shareholder.

    The allegations as I see them are that thse guys lured foreighners into investing in their company and then chucked them out. The foreigners thus went empty handed. That is what mai mujuru should answer for. Other incidental issues may relate to whether exchange control laws were complied with in the deals. This case could have been chosen because of potential spin available. Zimbabwe is struggling to attract FDI. So it will be a major concern if a senior government ofgicial was to be found duping the few that bring their money in.

    Ndanyarara hangu.

  • Kufandada

    This is a non issue,clear mudslinging.We must also talk about the deals between Timba and Goreraza and the hangers on of Mnangagwa with Rautenbach and others.

  • Kufandada

    Mai Mujuru for Vice President..

  • Mukotami

    You make serious sense here!, what is pitiful is that people want to sympathise with someone who has contributed to the pillaging of the economy. Everyone who has sabotaged the country should be exposed and their time will come. There should be no excuse for the corrupt.

  • Cde Mgagao

    Surely if you think its meant to tarnish her , then she must respond! Why should she keep mum if she has the right to defend her image! But remember companies can also have sleeping partners. Did she rcv the money? For what? Politics is not for those who die silently like lambs! Its not for those deaf and dumb who cannot use sign language to defend themselves!

  • Blackwave

    I don’t agree with many things that President Mugabe does but he wouldnt stoop so low as to push someone out through the media. If the President wanted her out, she would have been ousted already…

    • Makusakatara

      Black;

      The President is not going to push anyone out through the media. He knows what to do.

      Here I am talking about the revelations that are coming out into the open but not from the President but from people who had encounters with the VP and these are the ones giving this information to the media.

      As the First Lady confirmed during her meeting-the-people tours, the President called these people and warned them against engaging in those activities.

      They did not listen; instead they pretended to love the President when they did not and were not supporting him.

  • Blackwave

    Why should she waste time and energy to respond to slender?

  • hlekani

    Mujuru – cool musoro Damba down – he will be very happy if you can
    assure him that he will have a huge fx 10year project when you become
    president

  • Makusakatara

    Tsk;

    “Busy doing something more constructive (and) important” when she siphoning millions of dollars from diamond mining? You must be insane.

    “Something more constructive” by demanding 10% shares from all companies that want to invest in this country? You must be losing your faculties.

  • Makusakatara

    Ras;

    You should know that there are two sets of allegations here – the political and the criminal allegations. You are zeroing in on the criminal allegations which the media is paddling but ignoring the political allegations which ZANU-PF says will be dealt with at the People’s Congress in December.

    Political allegations cannot be brought before the courts of law and that is why the VP remains in charge. The government has not considered the criminal allegations and so she is innocent until proven guilt by a court of law, hence, her continued serving as VP for the country.

  • Ndabeni

    I never said corruption will end, where did you get that? However a good leader can control corruption in government structures.

  • chinoz

    Hahaha you are funny. Inga wakaputirwa fani.

  • Mandevu

    For as long as we, the people of Zimbabwe, think our future lies with any political party, then this is what we can expect. we need to get rid of them all