Champions Insurance shares sale blocked Frank Chitukutuku

Daniel Nemukuyu-Investigations Editor

Former Zimbabwe National Roads Administration chief executive officer Frank Chitukutuku’s bid to sell his 40 percent block of shares in Champions Insurance, hit a brickwall after the National Prosecuting Authority stopped the deal saying the shares were earmarked for forfeiture as part of ill-gotten wealth.

Chitukutuku is accused of swindling Zimbabwe National Roads Administration (ZINARA) of over US$3 million during his tenure as chief executive officer.

He faces charges of criminal abuse of office, fraud, bribery and money laundering. 

The State is now seeking to take over a 40 percent block of shares in one of the leading insurance companies, Champions Insurance, and a range of houses and vehicles all worth about US$20 million from former Zinara chief executive, who allegedly paid for the assets with money  siphoned from the road fund.

While the asset forfeiture case was pending, Chitukutuku last year entered an agreement with some third parties for the sale of his shares in Champions Insurance.

The shares were to be purchased through monthly instalments over a period of six years.

However, the NPA’s Asset Forfeiture Unit, headed by chief law officer Mr Chris Mutangadura smelt the rat and blocked the sale.

Part of the money had been paid but the shareholding had not yet changed.

Champions Insurance’s lawyers Madzima Chidyausiku Musera (MCM) Legal practitioners confirmed the agreement of sale had been concluded but the shareholding had not yet changed.

“Please note that as intimated in our meeting of March 31 2021, an agreement of sale for the shares in issue, payable over a five-year period, was concluded between Dr Chitukutuku and certain third parties, following a High Court judgment in favour of Dr Chitukutuku.

“All actions relating to the pending sale have been done openly and were disclosed to our client’s regulator.

“While some installment payments have been made, to date, there has been no change of shareholding in our client,” reads a letter by Champions Insurance’s lawyers.

The lawyers said Champions will now hold on to the shares in question pending determination of the asset forfeiture application.

“For the avoidance of doubt and in line with our discussion, we confirm that our client is prepared to hold on to the 40 percent shares that belonged to Dr Chitukutuku, in trust, until the litigation afore-referred is completed and therefrom comply with any direction issued by the court,” said the lawyers.

Chitukutuku’s immovable property targeted by the State is listed as: Lot 1 of Lot 3 of Lot 56a Borrowdale Estate Harare, Lot 3 of Glen Lorne ,Harare, remainder of Lot 1 of Lot E of Colne Valley of Reiffonteinn, Harare, measuring 4 552 square metres, and subdivision A of Sentosa of Mabelreign Harare measuring 9 536 square metres.

The vehicles are listed as: Mazda T35 ACN2758, Mazda T35 ACN0695, Hino Dutro ABI2738, Toyota Land Cruiser ADF8240, Toyota Prado ACP9977, Nissan NP200 ACN0713, Range Rover ACM2555, Hino Ranger ACU6845, Land Rover Discovery ADA7621, five tractors, 10 Tonne UD truck.

Other assets besides the 40 percent shareholding in Champions are: four water tanks, a farm house, and Farmpride Pvt Ltd of 49 Kent Road Chisipite.

In the application for forfeiture filed recently, the National Prosecuting Authority said investigations by the Zimbabwe Anti-Corruption Commission (ZACC) showed that a company called Hotspike (Pvt) Ltd, owned by Chitukutuku and his wife, had 40 percent shareholding in Champions Insurance.

Two other shareholders own the other 60 percent with Fremus Business Consultants owned by Mr Freddy Chimbari and his wife Masceline Chimbari holding 40 percent.

The State argues that Chitukutuku purchased the Champions Insurance shares, but does not explain how he met the Insurance’s recapitalisation requirements. 

From 2009 to 2019, Champions Insurance’s capital position rose from US$107 000 to US$17 238 000.

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