War veterans company in turmoil

Zvimba East Veterans Investment Company (ZEVIC), a firm established and wholly owned by veterans of the liberation struggle, is embroiled in turmoil following revelations that its bank account has been frozen due to alleged unlawful activities, including document tampering and fraudulent transactions involving thousands of dollars.

The company, which operates in property development and agriculture, is on the brink of collapse amid growing divisions among its directors and shareholders. Insiders revealed to Standard People that the chaos is largely attributed to infighting within various associations representing the veterans.

Last week, the arrest of seven directors was reportedly orchestrated by a faction aiming to sideline rival members and pave the way for the misappropriation of public funds. Insiders claim that thousands of dollars were withdrawn illegally between June 2023 and January 2024.

Three directors - Douglas Mandaza, Clifford Rutsate, and Jowel Samuel Muzhamba - along with employee Michael Changadzo, were arrested on January 31 and are facing fraud charges. Court documents indicate that the quartet allegedly forged CR6 documents for ZEVIC during a period from December 27, 2023, to January 2, 2024, which falsely represented the company as having only nine directors instead of the actual nine.

The company reportedly lost US$13,000 due to these fraudulent activities. All four suspects were released on bail after paying US$50 each and are set to return to the High Court on October 8 for trial continuation.

An internal audit has unveiled extensive misappropriation of public funds by the company's directors and employees, revealing that over US$100,000 was allegedly stashed in a refrigerator belonging to Changadzo. The funds were misappropriated during a time when Changadzo was serving as the general manager, with Mandaza and Peter Razemba in positions as finance director and security and loss control director, respectively.

Insiders disclosed that during a structured review, the company discovered attempts to orchestrate a theft of approximately US$40,000. Additional unauthorized withdrawals were made between December 12, 2023, and January 3, 2024.

Following these revelations, ZEVIC has initiated a restructuring process, appointing Retired Major Joe Chimonyo as the new CEO, with Cornelius Muoni, the chairperson of Mashonaland West war veterans, maintaining his role as patron of the company.

Sources indicate that the dismissed comrades are attempting to form a splinter group, aiming to gain access to the company's financial resources. They have allegedly been destabilizing ZEVIC and attempting to tamper with company documents to alter the structure of directorship.

"The comrades that were booted out are trying to come up with a splinter group and access to the company purse," one insider stated. "They have allegedly tampered with company documents, including changing the original CR6 that had 14 directors into fraudulent versions."

These insiders also suggested that the arrests of some directors were part of a strategy by the splinter group to manipulate access to the company's bank accounts. After the arrests, the splinter group allegedly sought to obtain a default court order compelling them to be the actual signatories to the company's bank accounts, despite existing bail restrictions.

The fate of ZEVIC is now in the hands of the High Court, which is expected to rule on the matter on October 9. Attempts to reach ZEVIC CEO Chimonyo for comment were unsuccessful.