Chivayo, Ginimbi destroyed my business, Nduna tells court

Zanu PF legislator Dexter Nduna on Thursday told a court how he lost R535,000 in an alleged fraud scheme involving flamboyant businessmen Genius Kadungure and Wicknell Chivayo, saying the deal left him financially crippled and blacklisted by banks.

Nduna, the legislator for Chegutu West, testified before magistrate Morgen Nemadire that he borrowed heavily to finance what he believed was a legitimate mining equipment supply contract for Marange Resources in Chiadzwa.

Instead, the court heard, he had allegedly fallen victim to an elaborate swindle orchestrated through fake procurement arrangements and fictitious companies registered in South Africa.

"My business was doing well. But now the banks don't trust me because I could not pay back the loan as planned. They brought me down," Nduna told the court.

According to the prosecution, Kadungure and Chivayo allegedly posed as procurement agents for Marange Diamonds and convinced Nduna and another complainant, businessman Evon Gatawa, to supply mining equipment through companies they secretly controlled.

The court heard that the pair allegedly created fake South African companies complete with websites, landline numbers and bank accounts to give the transactions an appearance of legitimacy.

Nduna said he deposited R535,000 into the account of a company called Always on Pumps after receiving what appeared to be a lucrative order for 20 T-90 Transco-Flo Helical Rotor pumps.

"The profit margin convinced me," Nduna said.

"The profit was above 50 percent. I had US$65,000 which translated to R335,000 on me so I wasn't worried to use it."

He added that he initially trusted the arrangement because the emails exchanged during negotiations appeared professional and carried inspirational captions.

"I thought I was dealing with genuine people because all the communication emails were captioned, ‘Let there be peace on earth and let it begin with me'," he said.

Nduna said he only realised he had been deceived after the supposed shipment arrangement collapsed.

"When the parcel was delivered later, I realised I had been duped. It struck me like lightning."

The legislator also told the court that personal tragedy delayed his decision to report the matter to authorities.

He said he was still grieving the deaths of his two children, Nqobile and Makomborero, who died in a road traffic accident in July 2012.

Nduna eventually reported the alleged fraud in both Zimbabwe and South Africa two years later.

By then, he said, the ABSA bank account linked to Always on Pumps had been closed, the company website had disappeared and phone lines were no longer active.

Prosecutor Ephraim Zinyandu told the court that the company belonged to Kadungure and Chivayo.

Nduna further testified that after he reported the matter, Kadungure contacted him and allegedly blamed Chivayo for the theft.

"He confessed having stolen money from Gatawa, but said he did not take my money," Nduna said.

The court also heard testimony earlier this week that Kadungure admitted receiving R500,000 from Chivayo through a third party identified only as D Kabwebwe, although he denied knowing the money was allegedly linked to fraud.

Kabwebwe testified that Kadungure had approached her seeking R500,000 in South Africa to finance a wholesale gas purchase and that she facilitated the exchange using funds from Chivayo.

She later told the court that Kadungure became angry after allegedly discovering the money was stolen.

Meanwhile, Gatawa testified that Kadungure later offered him US$50,000 in exchange for dropping charges, although only US$20,000 was allegedly paid.

Kadungure reportedly told the court he only agreed to the payment in an attempt to make the case disappear.

The two accused men, once seen as close associates, reportedly sat at opposite ends of the dock and did not speak during proceedings.

Kadungure is represented by Jonatha