News / National
Fresh US$100m gold scandal rocks treasury as top Zanu-PF ally implicated
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A major financial scandal has erupted at Zimbabwe's Finance Ministry, exposing what appears to be a fraudulent US$100 million payout to a shadowy company linked to a top Zanu-PF gold dealer, Pedzisayi "Scott" Sakupwanya. The illegal payment, intended as an incentive for gold deliveries to Fidelity Printers and Refiners, is raising serious concerns about corruption, constitutional violations, and abuse of public funds.
Confidential documents obtained by The NewsHawks show that the Finance Ministry, under the oversight of Permanent Secretary George Guvamatanga, authorized payments to Gaingrid Investments (Private) Limited - an obscure company with no known public record of operations or identifiable directors. War veterans leader Blessed Geza claims Gaingrid is connected to Sakupwanya, a prominent MP and gold trader close to President Emmerson Mnangagwa.
The scandal stems from a deal in which Gaingrid was contracted by the government and the Reserve Bank of Zimbabwe (RBZ) to source gold from miners nationwide. Under the agreement, the company was entitled to a 5% incentive from the Ministry of Finance, Economic Development and Investment Promotion (MoFEDIP) for every ounce of gold delivered to Fidelity Printers.
While the original incentive obligation stood at US$60 million, documents show that Guvamatanga unilaterally approved a repayment schedule of US$8 million per month over 12 months, totalling US$96 million - US$36 million more than initially owed. This raises alarms of possible bribes, kickbacks, or "money for the boys," as insiders describe it.
A letter dated 7 April 2025 from senior Finance Ministry economist Itai Munaki to Ecobank Zimbabwe Managing Director Moses Kurenjekwa confirms the government still owed Gaingrid US$36 million, with US$6 million due by 14 April. Yet earlier, in a 4 September 2024 letter, Guvamatanga had assured Ecobank that the ministry had discounted the US$60 million incentive to US$20 million via Treasury Bills - deepening confusion over the true nature of the payments.
Critics argue the discrepancy is deliberate, designed to mask large-scale financial misconduct. "There is method in the madness," one government source said.
The transaction also breaches the Public Finance Management Act [Chapter 22:19], which grants only the Finance Minister - not the permanent secretary - the authority to borrow or commit government funds via Treasury Bills. Lawyers say this renders the entire transaction unconstitutional and illegal.
Ecobank plays a central role as the facilitator of these payments. The bank agreed to buy the Treasury Bills issued to Gaingrid at a steep discount, providing cash to the company while the Treasury repays the full face value - another potential avenue for profiteering and corruption.
Treasury Bills, while legitimate short-term debt instruments, are increasingly being used by Zimbabwe's government to settle debts outside transparent procedures. Their discounting has become a source of corruption, with select individuals and companies benefiting through inside access and manipulated auctions.
This gold deal scandal comes in the wake of another murky financial transaction involving Guvamatanga. In February 2025, he allegedly provided an "illegal and unconstitutional" bank guarantee for a US$20 million loan to Valley Seeds - a company previously implicated in the controversial Command Agriculture programme. Documents show that the ministry committed to repay Ecobank US$60 million over 12 months, despite the bank agreeing to discount Valley Seeds' legacy debt to US$20 million.
Former Finance Minister Tendai Biti has strongly condemned both deals, calling them "looting on a grand scale."
Repeated efforts to reach Guvamatanga for comment were unsuccessful, as his phone was unreachable at the time of publication.
These developments underscore deepening concerns over Zimbabwe's fiscal governance, especially as the country grapples with a chronic economic crisis. The misuse of Treasury Bills and lack of oversight could further erode public confidence and worsen the plight of millions of citizens already suffering from inflation, unemployment, and deteriorating public services.
Confidential documents obtained by The NewsHawks show that the Finance Ministry, under the oversight of Permanent Secretary George Guvamatanga, authorized payments to Gaingrid Investments (Private) Limited - an obscure company with no known public record of operations or identifiable directors. War veterans leader Blessed Geza claims Gaingrid is connected to Sakupwanya, a prominent MP and gold trader close to President Emmerson Mnangagwa.
The scandal stems from a deal in which Gaingrid was contracted by the government and the Reserve Bank of Zimbabwe (RBZ) to source gold from miners nationwide. Under the agreement, the company was entitled to a 5% incentive from the Ministry of Finance, Economic Development and Investment Promotion (MoFEDIP) for every ounce of gold delivered to Fidelity Printers.
While the original incentive obligation stood at US$60 million, documents show that Guvamatanga unilaterally approved a repayment schedule of US$8 million per month over 12 months, totalling US$96 million - US$36 million more than initially owed. This raises alarms of possible bribes, kickbacks, or "money for the boys," as insiders describe it.
A letter dated 7 April 2025 from senior Finance Ministry economist Itai Munaki to Ecobank Zimbabwe Managing Director Moses Kurenjekwa confirms the government still owed Gaingrid US$36 million, with US$6 million due by 14 April. Yet earlier, in a 4 September 2024 letter, Guvamatanga had assured Ecobank that the ministry had discounted the US$60 million incentive to US$20 million via Treasury Bills - deepening confusion over the true nature of the payments.
Critics argue the discrepancy is deliberate, designed to mask large-scale financial misconduct. "There is method in the madness," one government source said.
Ecobank plays a central role as the facilitator of these payments. The bank agreed to buy the Treasury Bills issued to Gaingrid at a steep discount, providing cash to the company while the Treasury repays the full face value - another potential avenue for profiteering and corruption.
Treasury Bills, while legitimate short-term debt instruments, are increasingly being used by Zimbabwe's government to settle debts outside transparent procedures. Their discounting has become a source of corruption, with select individuals and companies benefiting through inside access and manipulated auctions.
This gold deal scandal comes in the wake of another murky financial transaction involving Guvamatanga. In February 2025, he allegedly provided an "illegal and unconstitutional" bank guarantee for a US$20 million loan to Valley Seeds - a company previously implicated in the controversial Command Agriculture programme. Documents show that the ministry committed to repay Ecobank US$60 million over 12 months, despite the bank agreeing to discount Valley Seeds' legacy debt to US$20 million.
Former Finance Minister Tendai Biti has strongly condemned both deals, calling them "looting on a grand scale."
Repeated efforts to reach Guvamatanga for comment were unsuccessful, as his phone was unreachable at the time of publication.
These developments underscore deepening concerns over Zimbabwe's fiscal governance, especially as the country grapples with a chronic economic crisis. The misuse of Treasury Bills and lack of oversight could further erode public confidence and worsen the plight of millions of citizens already suffering from inflation, unemployment, and deteriorating public services.
Source - newsday
