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Zimbabwe banker, SA banks implicated in R2 billion electoral scandal
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A top Zimbabwean banker is at the centre of the nearly R2 billion Zimbabwe Electoral Commission (ZEC) tender scandal involving a South African printing company paid R1.2 billion by the Harare government to supply election materials in 2023 amid money laundering investigations on both sides of the Limpopo River.
Raymond Singathini Chigogwana, who is chief executive of a Harare-based money transfer agency, Access Finance Group, and Access Forex (Proprietary) Limited, a money remittance entity in Johannesburg, facilitated prominent businessman Wicknell Chivayo's rapid movement of R800 million across banks from proceeds of an allegedly corrupt deal now under investigation by the South African Revenue Services and police.
A recent South African Financial Intelligence Centre report states there was swift movement of (SAFIC) funds across different banks from Zimbabwe to South Africa – through Chivayo's personal and business accounts – strongly indicating layering, which is part of money laundering.
Layering is a process by which criminals move illicit funds through a complex network of banks and transactions to obscure their source and make them appear legitimate. It involves multiple transactions, often across different jurisdictions, and can include activities like international money transfers, investments in real estate, or purchases of high-value goods. The aim of layering is to create a trail that is difficult to trace back to the original source of funds.
The Zimbabwe Anti-Corruption Commission (ZACC) said it was investigating the issue.
"I can tell you right now we have some documents which we want to show the three gentlemen and I hope I am not prejudicing investigations, but I want Zimbabwe to know that we have not been sitting on this investigation," ZACC chairperson Michael Reza told reporters.
"We have collected certain facts and when that information comes on the form 242 and if everything goes according to plan, we will use this to go to court. You will see detailed information with facts, figures and numbers. You will see those things, mark my words."
ZACC also interviewed Mike Chimombe and Moses Mpofu, Chivayo's former business partners. Chimombe and Mpofu were later detained over a different case after their fallout with Chivayo.
Most of the money laundering activities on this case happened between Zimbabwe and South Africa, with Johannesburg being the centre of action.
South African companies and banks are believed to have been deeply involved in the funds deposits and transfers.
Chigogwana, who has assets in Zimbabwe and South Africa, has been in banking for nearly 30 years – he worked for Zimbank (ZB Bank), BancABC, the now-defunct Premier Bank (Ecobank) where he was Managing Director, and currently Access Finance Group as chief executive and majority shareholder.
Access Finance, a money transfer hub, has operations in Harare and Johannesburg.
The SAFIC report found that Chigogwana received about R60 million from Chivayo's labyrinth of companies through the Johannesburg-based Kumba Group (Pty) Ltd, which got R28,875,000, and via Agile Venture Capital (Pty) Ltd that obtained R31,000,300. Chigogwana's interests in Kumba were represented by former Access Finance senior executive Elton Chitondo before he resigned from the company, according to company documents.
Currently, Refiloe Etsane, Access Finance chief strategy officer, represents Chigogwana's interests in Kumba as a director.
In Agile, Chigogwana is a director himself.
The report shows Chigogwana's companies were conduits of transferring some of the money for Chivayo for different activities and also changing it from one currency to another.
Chigogwana's companies would charge transaction fees and reap the arbitrage dividend from that.
When Chivayo received millions in Johannesburg in rands, he would approach companies like Chigogwana's convert it back into United States dollars, the original currency of operation, for use in Zimbabwe and elsewhere.
Much of the transactions were conducted via Hawala transfer, by which no physical movement of currency takes place.
The Zimbabwean government paid R1.2 billion to Ren-Form CCC, the South African company which won the elections printing tender in 2023, which in turn transferred a huge part of the funds – R800 million – to Chivayo, their broker in the deal.
Ren-Form has confirmed Chivayo is their broker.
Ren-Form did not directly address the money trail outlined in the SAFIC report but maintained its relationship with Chivayo was above board.
Chivayo reportedly spent some of the funds on luxury goods and properties in South Africa, Zimbabwe, United States, United Kingdom, China, and Dubai, United Arab Emirates.
He has reportedly spent at least R36.5 million on luxury vehicles with some Zimbabwean media reports claiming that vehicles were later donated to politically connected individuals.
Approached for comment, Chivayo has told media that his agreements with Ren-Form are commercial and "confidential", while payments "are not legally untenable".
Chivayo denied any wrongdoing.
Large sums of money were paid into Chivayo's personal and business bank accounts through his companies, Intratrek Holdings (Pty) Ltd, Edenbreeze (Pty) Ltd, Dolintel Trading Enterprise CC, and WC Trading (Pty) Ltd.
About R232 million went through these companies.
Edenbreeze alone received R156 million.
Intratrek Holdings and Dolintel handled most of the R800 million.
Some other payments amounting to R58.2 million were made to other entities, including a car dealership and an attorney, such as Indo Logistics, NN Truck and Trailer CC, Daytona, Strauss Scher Inc, Bokwest Investments, Flight Centre and Christian By Hadassah.
Further, large payments were made to Asibambeki Platinum Group (Pty) Ltd.
The South African Financial Intelligence report states money layering activities were suspected in these transactions.
Investigators found a series of suspicious payments rapidly moving in and out of different banks accounts through interbank transfers to multiple parties, luxury purchases, transactional activities not in line with the profile of the account holder, paying and recalling money by depositors, unusual banking activities, immediate transfers soon after deposits, and incessant cash withdrawals.
The money moved through South Africa's big three banks: FNB, Standard Bank and Absa.
In its report, SAFIC says: "The rapid movement of the funds through banks accounts of the subject (Chivayo) raised a suspicion, as indicates possible layering of funds (money laundering). The possibility that the funds may have derived from proceeds of the alleged criminal activity cannot be ruled out."
Ren-Form, which signed the deal with Zimbabwe's electoral management agency, and Chivayo agreed the money from the Zimbabwe Treasury would be paid in South Africa and subsequently distributed to parties involved from there.
Once the money started flowing in, Chivayo fell out with former business partners Mike Chimombe and Moses Mpofu currently jailed over a different corruption case.
A dossier, first given to The NewsHawks, a Zimbabwe investigative journalism centre which first broke the story, and voice notes from Chivayo's social media group with Chimombe and Mpofu exposed the agreements and who were paid bribes and kickbacks.
Although Chivayo has described them as fake, his colleagues authenticated them.
Those named in the dossier as having received bribes have not publicly responded.
The ZEC said: "The electoral commission does not want to breathe life to fiction."
Zimbabwean gold baron Pedzisayi Scott Sakupwanya funded the original expenses of the deal, paying about R5.6 million.
Part of the money was used for booking flights from Zimbabwe to South Africa and accommodation in Johannesburg, especially at Da Vinci Hotel.
As a result of the findings of the SAFIC report, South African financial regulators are probing Ren-Form and those involved like Chivayo and Chigogwana for money laundering offences.
Chigogwana has been approached for comment, but did not respond to repeated calls on his mobile number, nor did he respond to messages on WhatsApp.
Ren-Form sales director Jean-Pierre du Sart said the allegations are "false", but did not dispute the authenticity of the invoices and other financial records.
Further asked if Ren-Form paid Chivayo, Du Sart added: "He's one of our agents over there, so there's nothing wrong with that."
However, SAFIC concludes in its report that "criminal activity could not be ruled out" after its thorough investigation.
Chivayo's scandal has left Zimbabwe exposed afresh to money laundering activities, risking a relapse to grey-listing by the Financial Action Task Force (FATF). Being grey-listed by the FATF means a country is under increased monitoring for anti-money laundering and counter-terrorism financing deficiencies, with potential economic and reputational consequences, including reduced capital inflows and increased scrutiny. Zimbabwe was removed from the FATF grey list in March 2022 following an on-site evaluation exercise carried out in January that year.
The country had been placed on the grey list in 2019 after an evaluation process which identified many deficiencies in its implementation of the Anti-Money Laundering and Counter Financing of Terrorism Standards.
The FATF can place a country on its grey list which it deems a safe haven for money laundering or terrorist financing. Beyond grey listing, a country can also be blacklisted if it does not actively combat money laundering or terrorist financing.
Raymond Singathini Chigogwana, who is chief executive of a Harare-based money transfer agency, Access Finance Group, and Access Forex (Proprietary) Limited, a money remittance entity in Johannesburg, facilitated prominent businessman Wicknell Chivayo's rapid movement of R800 million across banks from proceeds of an allegedly corrupt deal now under investigation by the South African Revenue Services and police.
A recent South African Financial Intelligence Centre report states there was swift movement of (SAFIC) funds across different banks from Zimbabwe to South Africa – through Chivayo's personal and business accounts – strongly indicating layering, which is part of money laundering.
Layering is a process by which criminals move illicit funds through a complex network of banks and transactions to obscure their source and make them appear legitimate. It involves multiple transactions, often across different jurisdictions, and can include activities like international money transfers, investments in real estate, or purchases of high-value goods. The aim of layering is to create a trail that is difficult to trace back to the original source of funds.
The Zimbabwe Anti-Corruption Commission (ZACC) said it was investigating the issue.
"I can tell you right now we have some documents which we want to show the three gentlemen and I hope I am not prejudicing investigations, but I want Zimbabwe to know that we have not been sitting on this investigation," ZACC chairperson Michael Reza told reporters.
"We have collected certain facts and when that information comes on the form 242 and if everything goes according to plan, we will use this to go to court. You will see detailed information with facts, figures and numbers. You will see those things, mark my words."
ZACC also interviewed Mike Chimombe and Moses Mpofu, Chivayo's former business partners. Chimombe and Mpofu were later detained over a different case after their fallout with Chivayo.
Most of the money laundering activities on this case happened between Zimbabwe and South Africa, with Johannesburg being the centre of action.
South African companies and banks are believed to have been deeply involved in the funds deposits and transfers.
Chigogwana, who has assets in Zimbabwe and South Africa, has been in banking for nearly 30 years – he worked for Zimbank (ZB Bank), BancABC, the now-defunct Premier Bank (Ecobank) where he was Managing Director, and currently Access Finance Group as chief executive and majority shareholder.
Access Finance, a money transfer hub, has operations in Harare and Johannesburg.
The SAFIC report found that Chigogwana received about R60 million from Chivayo's labyrinth of companies through the Johannesburg-based Kumba Group (Pty) Ltd, which got R28,875,000, and via Agile Venture Capital (Pty) Ltd that obtained R31,000,300. Chigogwana's interests in Kumba were represented by former Access Finance senior executive Elton Chitondo before he resigned from the company, according to company documents.
Currently, Refiloe Etsane, Access Finance chief strategy officer, represents Chigogwana's interests in Kumba as a director.
In Agile, Chigogwana is a director himself.
The report shows Chigogwana's companies were conduits of transferring some of the money for Chivayo for different activities and also changing it from one currency to another.
Chigogwana's companies would charge transaction fees and reap the arbitrage dividend from that.
When Chivayo received millions in Johannesburg in rands, he would approach companies like Chigogwana's convert it back into United States dollars, the original currency of operation, for use in Zimbabwe and elsewhere.
Much of the transactions were conducted via Hawala transfer, by which no physical movement of currency takes place.
The Zimbabwean government paid R1.2 billion to Ren-Form CCC, the South African company which won the elections printing tender in 2023, which in turn transferred a huge part of the funds – R800 million – to Chivayo, their broker in the deal.
Ren-Form has confirmed Chivayo is their broker.
Ren-Form did not directly address the money trail outlined in the SAFIC report but maintained its relationship with Chivayo was above board.
Chivayo reportedly spent some of the funds on luxury goods and properties in South Africa, Zimbabwe, United States, United Kingdom, China, and Dubai, United Arab Emirates.
He has reportedly spent at least R36.5 million on luxury vehicles with some Zimbabwean media reports claiming that vehicles were later donated to politically connected individuals.
Approached for comment, Chivayo has told media that his agreements with Ren-Form are commercial and "confidential", while payments "are not legally untenable".
Chivayo denied any wrongdoing.
About R232 million went through these companies.
Edenbreeze alone received R156 million.
Intratrek Holdings and Dolintel handled most of the R800 million.
Some other payments amounting to R58.2 million were made to other entities, including a car dealership and an attorney, such as Indo Logistics, NN Truck and Trailer CC, Daytona, Strauss Scher Inc, Bokwest Investments, Flight Centre and Christian By Hadassah.
Further, large payments were made to Asibambeki Platinum Group (Pty) Ltd.
The South African Financial Intelligence report states money layering activities were suspected in these transactions.
Investigators found a series of suspicious payments rapidly moving in and out of different banks accounts through interbank transfers to multiple parties, luxury purchases, transactional activities not in line with the profile of the account holder, paying and recalling money by depositors, unusual banking activities, immediate transfers soon after deposits, and incessant cash withdrawals.
The money moved through South Africa's big three banks: FNB, Standard Bank and Absa.
In its report, SAFIC says: "The rapid movement of the funds through banks accounts of the subject (Chivayo) raised a suspicion, as indicates possible layering of funds (money laundering). The possibility that the funds may have derived from proceeds of the alleged criminal activity cannot be ruled out."
Ren-Form, which signed the deal with Zimbabwe's electoral management agency, and Chivayo agreed the money from the Zimbabwe Treasury would be paid in South Africa and subsequently distributed to parties involved from there.
Once the money started flowing in, Chivayo fell out with former business partners Mike Chimombe and Moses Mpofu currently jailed over a different corruption case.
A dossier, first given to The NewsHawks, a Zimbabwe investigative journalism centre which first broke the story, and voice notes from Chivayo's social media group with Chimombe and Mpofu exposed the agreements and who were paid bribes and kickbacks.
Although Chivayo has described them as fake, his colleagues authenticated them.
Those named in the dossier as having received bribes have not publicly responded.
The ZEC said: "The electoral commission does not want to breathe life to fiction."
Zimbabwean gold baron Pedzisayi Scott Sakupwanya funded the original expenses of the deal, paying about R5.6 million.
Part of the money was used for booking flights from Zimbabwe to South Africa and accommodation in Johannesburg, especially at Da Vinci Hotel.
As a result of the findings of the SAFIC report, South African financial regulators are probing Ren-Form and those involved like Chivayo and Chigogwana for money laundering offences.
Chigogwana has been approached for comment, but did not respond to repeated calls on his mobile number, nor did he respond to messages on WhatsApp.
Ren-Form sales director Jean-Pierre du Sart said the allegations are "false", but did not dispute the authenticity of the invoices and other financial records.
Further asked if Ren-Form paid Chivayo, Du Sart added: "He's one of our agents over there, so there's nothing wrong with that."
However, SAFIC concludes in its report that "criminal activity could not be ruled out" after its thorough investigation.
Chivayo's scandal has left Zimbabwe exposed afresh to money laundering activities, risking a relapse to grey-listing by the Financial Action Task Force (FATF). Being grey-listed by the FATF means a country is under increased monitoring for anti-money laundering and counter-terrorism financing deficiencies, with potential economic and reputational consequences, including reduced capital inflows and increased scrutiny. Zimbabwe was removed from the FATF grey list in March 2022 following an on-site evaluation exercise carried out in January that year.
The country had been placed on the grey list in 2019 after an evaluation process which identified many deficiencies in its implementation of the Anti-Money Laundering and Counter Financing of Terrorism Standards.
The FATF can place a country on its grey list which it deems a safe haven for money laundering or terrorist financing. Beyond grey listing, a country can also be blacklisted if it does not actively combat money laundering or terrorist financing.
Source - iol
