Zimpapers Logo

Fidelis Munyoro Chief Court Reporter

Attempts to have forfeited houses and shareholdings owned by former Zinara chief executive Frank Chitukutu has seen him fighting back, denying that his vast property holdings were acquired through illicit means bordering on corruption and insisting that he worked hard to build his wealth portfolio.

Last week the hearing started for the State application seeking to take over a 40 percent block of shares in Champions Insurance, and a range of houses and vehicles all worth about US$20 million from Chitukutuku. He is being accused of having allegedly paid for the assets with cash siphoned from the road fund.

The application is a civil matter, which means the court just has to find there is a balance of probabilities that he bought the assets using the proceeds of corruption or near corruption, rather than the stricter finding of proof beyond reasonable doubt required in a criminal case.

Chitukutuku is accused of swindling Zimbabwe National Roads Administration of over US$3 million during his tenure as chief executive officer and faces on the criminal side charges of criminal abuse of office, fraud, bribery and money laundering.

Through his lawyer Mr Jonas Dondo, Chitukutuku explained how he built his empire of assets legitimately by hard work and loans advanced to him by banks and financial institutions.

Chitukukutu is cited in the matter along with his wife Nyasha and the family company Hotspikes (Pvt) Ltd as respondents.

Mr Dondo argued that the family, contrary to the assertions of the Prosecutor-General that the properties were acquired outside the capacity of its lawful income, were able to give detailed explanations to show that the properties were acquired through lawful means from the sale of eggs and farm produce, bank loans, dividends from Champions Insurance, and the salary and allowances of a Zinara chief executive.

In support of his case Chitukutuku also produced documents and other supporting evidence.

Mr Dondo also submitted that the Prosecutor General’s arguments were not evidence, but opinion gleaned from statements made by possible State witnesses in the criminal case Chitukutuku is facing.

“Virtually, all the statements made by the possible state witnesses are highly unreliable on the basis that these individuals, namely the rural district officials, face possible criminal sanctions for criminally flouting their own procurement process.

“They have an obvious motive to hide behind a figure and protect their own skins by blaming the first respondent for their own criminal actions.”

What the civil suit is attempting to show is that it is probable that Chitukutuku used proceeds from corruption at Zinara to become a 40 percent shareholder in Champions Insurance and bought several other movable and immovable properties.

The shares, according to the State, become tainted and they should be forfeited.

Justice Benjamin Chikowero presided over the case and reserved judgment to a later date.

Among the assets targeted by the State are, besides the shares in Champions Insurance, a range of property and vehicles.

The property 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 Reitfonteinn, Harare, measuring 4 552 square metres; and subdivision A of Sentosa of Mabelreign Harare measuring 9 536 square metres. There is also a fleet of cars.

In the application for forfeiture, 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.