Zimbabwe tycoon 'loses' US$65m in SA deal

Zimbabwean tycoon Danny Mavura Huruyadzo is set to lose substantial money after a multi-million-dollar deal with his erstwhile business associates based in South Africa turned sour.

To avoid losing a larger chunk of money in the deal that involves a South African company, Cashfields (Pvt) Ltd, Huruyadzo's Hibernic Energy is set to lose US$65 million after both parties agreed on an-out-of-court settlement.

The deal has been haunting Huruyadzo as it threatened his prospective business projects in Zimbabwe amid revelations that his former partners based in South Africa were vying for a share of the US$150 million that he realised while operating in southern Africa.

Cashfields (Pvt) Limited had a longstanding multi-million business partnership with Hibernic Energy in South Africa until Huruyadzo decided to come back to Zimbabwe to embark on new business ventures.

Huruyadzo claims his erstwhile partners have been giving him sleepless nights since the time he moved to Zimbabwe over his money in a South African bank.

Early this year, Cashfields (Pvt) Ltd represented by its managing director Herbert Woods approached the High Court in Zimbabwe demanding the freezing of US$150 million in Hibernic Energy's South African account.

Woods claims that in the course of the parties' mutual business relationship, Huruyadzo accrued huge bank balances totalling US$155 million.

However, Huruyadzo responded to Woods' claims, arguing that the money in the South African bank was his and that after the termination of the mutual agreement, Woods was given his monetary share of US$5 million.

A source told Standard People that Huruyadzo was a key player in the money-spinning deal that involved the South Africans and deserved the lion's share.

"Since Huruyadzo's return to Zimbabwe after a short stint away, he has been battling for his share of the multimillion dollar deal's proceeds after his account with a South African bank was frozen," the source said.

"An initial arrangement where the South Africans were given US$5 million and the legal recourse did not bring closure to the issue as Huruyadzo did not have access to money in his South African bank account."

The source said Huruyadzo has given in to the demands by Cashfields (Pvt) Ltd, who now have the support of two other powerful people who were involved in the deal.

"With two other powerful members of the cartel fighting in Woods' corner, Huruyadzo has been left with no choice, but to buy-in to the out-of-court settlement deal, which leaves him US$65 million poorer," the source said.

When contacted for comment yesterday, Huruyadzo confirmed having agreed to the out-of-court settlement.

"I have been having serious problems with transacting the millions of dollars in my South African bank account across southern Africa as I did not have access to the money," he said.

Huruyadzo said he had to settle for the deal, which leaves him with US$90 million, in order to push his local investment projects in line with the government's National Development Strategy and the thrust of Vision 2030.

Huruyadzo claims his local projects were shrouded in uncertainty since he did not show much of what he does despite being among some of the big investors in the country.