Court orders Huaxin to comply with Zimbabwe police search warrant

The High Court has ordered Huaxin Zimbabwe Industries to comply with a search and seizure warrant obtained by the Zimbabwe Republic Police (ZRP) as part of ongoing investigations into alleged money laundering, proceeds of crime, and other related offences.

The investigations reportedly cover suspected violations of the country's Exchange Control Regulations, the Labour Act, and the Bank Use Promotion and Suppression of Money Laundering Act.

Huaxin approached the High Court in a bid to block the execution of the warrant, which had been issued by the Harare Magistrates Court. The company, represented by lawyer Ashiel Mugiya, cited magistrate Vakai Chikwekwe, Detective Assistant Inspector Dandanyika, and the Commissioner-General of Police as respondents.

In an urgent chamber application, Huaxin's head of procurement, Hu Wei, sought a stay of execution pending a review of the warrant, arguing that it was irregular and unlawful.

Court documents show that Dandanyika obtained the warrant, referenced WSS1619/26, before visiting the company's factory on March 11, where it was served on one of Huaxin's employees. Police indicated their intention to execute the warrant on March 20, warning that failure to cooperate would result in arrest for contempt of court.

Huaxin argued that the warrant did not meet the legal requirements necessary for its validity. The company maintained that such warrants must clearly demonstrate reasonable grounds for believing that evidence linked to a crime is in the possession of the targeted party.

The firm further contended that the warrant infringed on its right to privacy and amounted to a "nationwide fishing expedition" targeting foreign-owned entities. It claimed that authorities were conducting investigations without reasonable suspicion, hoping to uncover wrongdoing through broad scrutiny of company records.

However, police opposed the application, stating that they had received information in February alleging that Huaxin was involved in multiple illegal activities. These included failing to channel business proceeds through the formal banking system, externalising large sums of money, and employing foreign nationals without valid work permits.

The warrant authorises investigators to access a wide range of company records, including payroll data, contracts, financial statements, import documentation, invoices, and bank statements covering the period from January 1, 2025, to January 31, 2026.

In her ruling, High Court judge Justice Vivian Ndlovu dismissed Huaxin's application, effectively clearing the way for law enforcement authorities to proceed with the search and seizure operation.