News / National
SA chrome tycoon 'pays millions' to Zanu-PF chefs
29 Apr 2023 at 14:32hrs | Views
A FIRM controlled by one of South Africa's richest tycoons suspiciously moved millions of United States dollars to politically connected Zimbabwean companies and powerful individuals, about five years ago, a new report said this week, claiming the funds were illicitly paid.
A collection of confidential papers contained in a probe by The Sentry - a US-based investigative and policy organisation that fights multinational predatory networks benefitting from corruption, oppression and kleptocracy - claimed that Zunaid Moti, the founder of African Chrome Fields (ACF), might have moved up to US$130 million into the accounts of 28 companies and four individuals in Zimbabwe from 2017.
The Sentry claimed that records of some of the firms that received funds from Moti's Spincash Investments and ACF were now missing from the companies registry in Harare.
The Moti Group controls majority shareholding in Zimbabwe-based ACF, which holds swathes of chrome claims in the mineral-rich Midlands province.
In July 2018, ACF launched an alumino-thermic plant in Kwekwe to produce up to 12 000 tonnes of low sulphur, high-grade ferrochrome annually, without using electricity.
The firm is said to be in the middle of negotiating a venture based on its lithium concession in Zimbabwe with an unnamed Chinese company, which could lead to the setting up of a battery factory at a cost of more than US$1 billion.
The group is also involved in platinum mining, real estate and logistics, mainly in South Africa.
Moti has since left the group because "his reputation was hindering the fortunes of the company" and was replaced by South Africa's former Treasury director-general, Dondo Mogajane, who is now leading the negotiations around the Zimbabwe lithium battery venture.
However, he reportedly plans to maintain his involvement in the running of ACF.
However, his presence in Zimbabwe has been shrouded by allegations that he has established strong political links, which have given him leverage to manoeuvre as he pleases.
The Sentry, claimed that huge sums of money began moving into the powerful individuals' accounts soon after one of Zimbabwe's richest businesspeople paid millions to snatch up to 30% shareholding in ACF about five years ago.
The stake was previously held by a company called Spincash, which is also controlled by Moti. "As Spincash received (the businessman)'s (funds to buy shareholding) in instalments, Spincash and ACF began moving the money over several months," The Sentry claimed in a report obtained by the Zimbabwe Independent this week.
"Payments were made under loan contracts with two newly formed companies ... both crowned by the Zimbabwean businessman (name supplied).
"From November 2017 to September 2018, ACF and Spincash began distributing funds to Zimbabwean companies.
"As part of the payments by Spincash and ACF, money amounting to US$130,7 million was paid to various entities in 595 transactions.
The report claimed that US$1 million was moved into the coffers of one of Zimbabwe's biggest farms.
The report, which is titled The Spincash Machine reads:
"The Spincash deal was followed by a money-moving operation in which Moti's companies paid US$130 million in 595 instalments to a mix of established firms, companies whose records are missing, and politically linked entities in Zimbabwe," the report said.
"By 2015, ACF was a well-connected firm. it had formed a joint venture with the Zimbabwe Defence Forces (ZDF) ... Moti made powerful friends soon after his purchase of 70% of ACF in 2014," The Sentry claimed.
This week, Moti said he had no appetite to conduct commercial crimes in Zimbabwe.
"The report published online by The Sentry, under the headline The Spincash Machine, and used as a reference by various media organisations in South Africa and Zimbabwe, seeks to cast aspersions on my reputation, as well as the reputation of one of my companies, African Chrome Fields, a company registered and trading in Zimbabwe," Moti said.
"Allegations of possible economic crimes and undue influence are alluded to and the report insinuates that i was somehow involved in the so-called coup in Zimbabwe either indirectly or directly.
"I would like to take this opportunity to respond to the article and rebut the spurious allegations and negative narrative pushed by The Sentry despite repeated attempts at setting the record straight prior to publication. These attempts were largely ignored or dismissed out of hand."
But in its recommendations, The Sentry highlighted that payments made by Spincash and ACF to politically linked Zimbabweans must be investigated.
"When US$780 000 in cash was stolen from South African president Cyril Ramaphosa's farm, the resulting scandal led to an official inquiry led by former Chief Justice Sandile Ngcobo," Sentry's report reads.
The Sentry indicates that Moti's plans for ACF, including exporting raw chrome to neighbouring South Africa and processing the mineral in Zimbabwe, were aided in part by favourable regulatory and taxation decisions by Harare's authorities.
The Independent recently reported that a South African executive allegedly stole thousands of sensitive documents at the Moti Group, sparking legal battles for their return in the two countries.
Moti said the missing corporate documents, which were allegedly taken by a South African executive known as Clinton van Niekerk, had been sent to The Sentry, various media houses and third parties.
Van Niekerk, who was employed by Mazetti Management Services, a subsidiary of the Moti Group, resigned and was arrested at King Shaka international Airport in Durban, South Africa.
The documents claimed that van Niekerk was arrested as he tried to leave that country to avoid prosecution, after the disappearance came to light last year, setting into motion the investigation that has seen him being slapped with criminal charges in South Africa and Zimbabwe.
Among the "stolen" papers were corporate documents belonging to Moti Group's Zimbabwean interests, according to court papers seen by the Independent.
Criminal charges have also been filed against a South African attorney.
Following his arrest, van Niekerk's legal representatives launched an urgent application in the Durban High Court to secure his release because he "fears for his life".
"These representatives did not attempt to explain why the Australian or london authorities would be interested in alleged crimes committed in South Africa, nor did they explain how the Australian authorities would arrange a visa for the United Kingdom," read part of documents seen by this publication.
"Van Niekerk was released the next day and is now alleged to be in an unspecified witness protection programme."
In an urgent application lodged on February 13 2023 in the Durban High Court, David Willoughby of Mazetti applied to have the order securing van Niekerk's release set aside.
Willoughby claimed that van Niekerk broke the confidentiality provisions of his employment contract and "inter alia, the protection of personal information Act, the Cyber Crimes Act and the Criminal procedure Act" in South Africa.
Van Niekerk is alleged to have taken some of the documents while in Zimbabwe, where authorities are working with their South Africa counterparts in a cross-border investigation, according to official papers.
Moti said: "During February 2023, i received an exhaustive list of questions from The Sentry ... When i read it became clear that these questions relate to the multiple documents included in the theft by van Niekerk. it should be noted that many of the documents stolen by van Niekerk were in Word or Excel format and can, therefore, be easily edited."
The Sentry's director of investigations, Charles Carter red flagged the involvement of Zimbabwe's military in the country's lucrative mining sector.
"The revelations about the role of the military in the mining sector, particularly at a critical time of political transition in Zimbabwe, highlight the need to get the men with guns out of the national economy," he told the Independent this week.
"Full civilian control of the military requires full financial control, including the elimination of off-budget sources of funding."
Efforts to locate van Niekerk were futile as he was said to be witness protection.
A collection of confidential papers contained in a probe by The Sentry - a US-based investigative and policy organisation that fights multinational predatory networks benefitting from corruption, oppression and kleptocracy - claimed that Zunaid Moti, the founder of African Chrome Fields (ACF), might have moved up to US$130 million into the accounts of 28 companies and four individuals in Zimbabwe from 2017.
The Sentry claimed that records of some of the firms that received funds from Moti's Spincash Investments and ACF were now missing from the companies registry in Harare.
The Moti Group controls majority shareholding in Zimbabwe-based ACF, which holds swathes of chrome claims in the mineral-rich Midlands province.
In July 2018, ACF launched an alumino-thermic plant in Kwekwe to produce up to 12 000 tonnes of low sulphur, high-grade ferrochrome annually, without using electricity.
The firm is said to be in the middle of negotiating a venture based on its lithium concession in Zimbabwe with an unnamed Chinese company, which could lead to the setting up of a battery factory at a cost of more than US$1 billion.
The group is also involved in platinum mining, real estate and logistics, mainly in South Africa.
Moti has since left the group because "his reputation was hindering the fortunes of the company" and was replaced by South Africa's former Treasury director-general, Dondo Mogajane, who is now leading the negotiations around the Zimbabwe lithium battery venture.
However, he reportedly plans to maintain his involvement in the running of ACF.
However, his presence in Zimbabwe has been shrouded by allegations that he has established strong political links, which have given him leverage to manoeuvre as he pleases.
The Sentry, claimed that huge sums of money began moving into the powerful individuals' accounts soon after one of Zimbabwe's richest businesspeople paid millions to snatch up to 30% shareholding in ACF about five years ago.
The stake was previously held by a company called Spincash, which is also controlled by Moti. "As Spincash received (the businessman)'s (funds to buy shareholding) in instalments, Spincash and ACF began moving the money over several months," The Sentry claimed in a report obtained by the Zimbabwe Independent this week.
"Payments were made under loan contracts with two newly formed companies ... both crowned by the Zimbabwean businessman (name supplied).
"From November 2017 to September 2018, ACF and Spincash began distributing funds to Zimbabwean companies.
"As part of the payments by Spincash and ACF, money amounting to US$130,7 million was paid to various entities in 595 transactions.
The report claimed that US$1 million was moved into the coffers of one of Zimbabwe's biggest farms.
The report, which is titled The Spincash Machine reads:
"The Spincash deal was followed by a money-moving operation in which Moti's companies paid US$130 million in 595 instalments to a mix of established firms, companies whose records are missing, and politically linked entities in Zimbabwe," the report said.
"By 2015, ACF was a well-connected firm. it had formed a joint venture with the Zimbabwe Defence Forces (ZDF) ... Moti made powerful friends soon after his purchase of 70% of ACF in 2014," The Sentry claimed.
This week, Moti said he had no appetite to conduct commercial crimes in Zimbabwe.
"The report published online by The Sentry, under the headline The Spincash Machine, and used as a reference by various media organisations in South Africa and Zimbabwe, seeks to cast aspersions on my reputation, as well as the reputation of one of my companies, African Chrome Fields, a company registered and trading in Zimbabwe," Moti said.
"I would like to take this opportunity to respond to the article and rebut the spurious allegations and negative narrative pushed by The Sentry despite repeated attempts at setting the record straight prior to publication. These attempts were largely ignored or dismissed out of hand."
But in its recommendations, The Sentry highlighted that payments made by Spincash and ACF to politically linked Zimbabweans must be investigated.
"When US$780 000 in cash was stolen from South African president Cyril Ramaphosa's farm, the resulting scandal led to an official inquiry led by former Chief Justice Sandile Ngcobo," Sentry's report reads.
The Sentry indicates that Moti's plans for ACF, including exporting raw chrome to neighbouring South Africa and processing the mineral in Zimbabwe, were aided in part by favourable regulatory and taxation decisions by Harare's authorities.
The Independent recently reported that a South African executive allegedly stole thousands of sensitive documents at the Moti Group, sparking legal battles for their return in the two countries.
Moti said the missing corporate documents, which were allegedly taken by a South African executive known as Clinton van Niekerk, had been sent to The Sentry, various media houses and third parties.
Van Niekerk, who was employed by Mazetti Management Services, a subsidiary of the Moti Group, resigned and was arrested at King Shaka international Airport in Durban, South Africa.
The documents claimed that van Niekerk was arrested as he tried to leave that country to avoid prosecution, after the disappearance came to light last year, setting into motion the investigation that has seen him being slapped with criminal charges in South Africa and Zimbabwe.
Among the "stolen" papers were corporate documents belonging to Moti Group's Zimbabwean interests, according to court papers seen by the Independent.
Criminal charges have also been filed against a South African attorney.
Following his arrest, van Niekerk's legal representatives launched an urgent application in the Durban High Court to secure his release because he "fears for his life".
"These representatives did not attempt to explain why the Australian or london authorities would be interested in alleged crimes committed in South Africa, nor did they explain how the Australian authorities would arrange a visa for the United Kingdom," read part of documents seen by this publication.
"Van Niekerk was released the next day and is now alleged to be in an unspecified witness protection programme."
In an urgent application lodged on February 13 2023 in the Durban High Court, David Willoughby of Mazetti applied to have the order securing van Niekerk's release set aside.
Willoughby claimed that van Niekerk broke the confidentiality provisions of his employment contract and "inter alia, the protection of personal information Act, the Cyber Crimes Act and the Criminal procedure Act" in South Africa.
Van Niekerk is alleged to have taken some of the documents while in Zimbabwe, where authorities are working with their South Africa counterparts in a cross-border investigation, according to official papers.
Moti said: "During February 2023, i received an exhaustive list of questions from The Sentry ... When i read it became clear that these questions relate to the multiple documents included in the theft by van Niekerk. it should be noted that many of the documents stolen by van Niekerk were in Word or Excel format and can, therefore, be easily edited."
The Sentry's director of investigations, Charles Carter red flagged the involvement of Zimbabwe's military in the country's lucrative mining sector.
"The revelations about the role of the military in the mining sector, particularly at a critical time of political transition in Zimbabwe, highlight the need to get the men with guns out of the national economy," he told the Independent this week.
"Full civilian control of the military requires full financial control, including the elimination of off-budget sources of funding."
Efforts to locate van Niekerk were futile as he was said to be witness protection.
Source - The Independent
