Opinion / Columnist
Zanu-PF MP ordered to pay US$3 million
16 Oct 2024 at 15:10hrs | Views
Zanu-PF's Insiza North Member of Parliament, Farai Taruvinga, a prominent gold baron in Matabeleland South province, is facing legal action from gold buyer Shasha Richard Gomez over an unpaid gold delivery worth US$3.6 million. The High Court case stems from a 2021 agreement in which Taruvinga's company, Trade Rivers Investments (operating as Progress Mine), borrowed US$1.7 million from Gomez's Yellow Carriage Investments to fund its mining activities.
According to court documents filed on June 7, 2024, Taruvinga and fellow Trade Rivers director Sylvester Kamupangu agreed to repay the loan with 50,185.62kg of gold concentrate. However, only 7,548kg of gold - valued at US$401,940 at the time - was delivered by the end of 2021, leaving a substantial balance of 42,637.23kg. The outstanding gold, which was initially worth US$1.3 million, has since risen to a value of US$3.6 million, according to current bullion prices on the world market.
The plaintiff, Yellow Carriage Investments, has now turned to the courts in an effort to recover the remaining gold or its monetary equivalent. The summons, filed under High Court case number HCBC787/24, names Trade Rivers Investments, Taruvinga, and Kamupangu as defendants. The summons states that the plaintiff is entitled to receive the remaining 42,637.23kg of gold, either through direct delivery or in US dollar payments based on the London Bullion Market Association's valuation.
"The plaintiff is a duly licensed gold-buying entity, and the first defendant (Trade Rivers) operates a gold mine in Filabusi. The second and third defendants, Taruvinga and Kamupangu, are directors of the first defendant," the court documents state. "It was agreed that the loan would be repaid through the delivery of gold concentrate, but despite receiving the funds, the defendants failed to meet their obligations."
The HewsHawks reports that the legal dispute has escalated as Taruvinga and his co-director have been accused of refusing to honor the agreement, prompting Yellow Carriage to seek compensation. The plaintiff is requesting either the delivery of the outstanding gold or its equivalent value in US dollars, as confirmed by Fidelity Printers and Refinery Zimbabwe.
In addition to the repayment of the gold or cash equivalent, Taruvinga and Kamupangu have been ordered to pay a 10% collection commission on the outstanding amount. The summons also requests that interest be applied to the sum from the date of the summons until full payment is made, along with legal costs at the practitioner-client scale.
This high-profile case has drawn attention due to Taruvinga's prominent role as a businessman and legislator in the ruling Zanu-PF party, as well as the massive financial implications tied to the fluctuating value of gold on the international market. The case remains ongoing as the court deliberates on the appropriate course of action.
According to court documents filed on June 7, 2024, Taruvinga and fellow Trade Rivers director Sylvester Kamupangu agreed to repay the loan with 50,185.62kg of gold concentrate. However, only 7,548kg of gold - valued at US$401,940 at the time - was delivered by the end of 2021, leaving a substantial balance of 42,637.23kg. The outstanding gold, which was initially worth US$1.3 million, has since risen to a value of US$3.6 million, according to current bullion prices on the world market.
The plaintiff, Yellow Carriage Investments, has now turned to the courts in an effort to recover the remaining gold or its monetary equivalent. The summons, filed under High Court case number HCBC787/24, names Trade Rivers Investments, Taruvinga, and Kamupangu as defendants. The summons states that the plaintiff is entitled to receive the remaining 42,637.23kg of gold, either through direct delivery or in US dollar payments based on the London Bullion Market Association's valuation.
The HewsHawks reports that the legal dispute has escalated as Taruvinga and his co-director have been accused of refusing to honor the agreement, prompting Yellow Carriage to seek compensation. The plaintiff is requesting either the delivery of the outstanding gold or its equivalent value in US dollars, as confirmed by Fidelity Printers and Refinery Zimbabwe.
In addition to the repayment of the gold or cash equivalent, Taruvinga and Kamupangu have been ordered to pay a 10% collection commission on the outstanding amount. The summons also requests that interest be applied to the sum from the date of the summons until full payment is made, along with legal costs at the practitioner-client scale.
This high-profile case has drawn attention due to Taruvinga's prominent role as a businessman and legislator in the ruling Zanu-PF party, as well as the massive financial implications tied to the fluctuating value of gold on the international market. The case remains ongoing as the court deliberates on the appropriate course of action.
Source - newshawks
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