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IOL News
08-05-2025
- Business
- IOL News
Zimbabwe banker, South African banks implicated in R2 billion electoral scandal
Uncover the shocking details of a R2 billion scandal involving a prominent Zimbabwean banker, the Zimbabwe Electoral Commission, and a South African printing company, as serious money laundering allegations surface. Image: IOL / Ron AI By Roland Mpofu 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. IOL News
The Citizen
24-04-2025
- Politics
- The Citizen
Zim on the brink: Analysts warn of political implosion and economic collapse
With Mnangagwa accused of clinging to power and the opposition in tatters, Zimbabwe's future looks increasingly bleak. As Zimbabwe's socioeconomic crisis deepens, analysts warned this week that the country may be heading for an implosion. According to Harare-based human rights lawyer Thulani Mzala, the mineral and tobacco-rich middle-income country has been hit by 'multifaceted problems'. These include political repression, economic collapse and institutional decay, with President Emmerson Mnangagwa seeking to extend his rule to 2030. In addition scores of human rights activists are in jail, medicines and bed linen are scarce in most hospitals, leading to dysfunctional health care and prisons are running out of food. Zanu-PF factionalism and opposition collapse Despite stability hinging on political parties, including the ruling Zanu-PF, commencing negotiations, Mzala said a collapse in the Zimbabwean opposition and the factionalism plaguing the governing party remained among the 'negative factors'. 'The collapse of the Zimbabwean opposition can be traced to infiltration by Zanu-PF and Central Intelligence Organisation agents. 'Another factor is the infighting within Zanu-PF, with Vice-President General Constantino Chiwenga, who led the military coup to oust former president Robert Mugabe, at loggerheads with Mnangagwa over the extension of his term of office to 2030. ALSO READ: 'Help bring us home' – Zimbabwean permit holders say life in SA has become intolerable Power struggles and military response fears 'There has been a document circulating that is expected to go to Cabinet for the approval of the extension of Mnangagwa term. The document will thereafter move to parliament, with MPs expected to vote in favour of extending the president's term to 2030,' said Mzala. He described the Zimbabwean situation as 'very tense amid a standoff between Mnangagwa and expelled Zanu-PF central committee member Blessed Geza. 'Geza has been mobilising mass demonstrations and stayaways. He calls the president corrupt and says he is butchering the constitution in wanting to extend his term. No-one knows what is going to happen due to Zanu-PF internal factionalism. Whether Chiwenga still has support in the military remains to be seen amid talk of a military takeover. 'But the president seems to be in control of the military.' 'Not interested in democracy' Political analysts Dale McKinley and Sandile Swana said Zimbabwe was far from the restoration of normality Said McKinley: 'Zimbabwe is in a deep, structural, political, economic and social crisis. 'At heart of it is Zanu-PF, which runs the government and the military that supports it, and is not interested in democracy. 'They are interested in maintaining power at all costs, with the economic crisis going on for the past 20 years in varying degrees – irrespective of the removal of Mugabe. 'The predatory elite use the state – a vampire state trying to suck out everything. It will take a social and political revolution in Zimbabwe to change the status quo – people rising up, combined with pressure from outside.' ALSO READ: Meet the ageing war veteran standing up to Zimbabwe's president 'The crisis will continue' under Zanu-PF Swana said: 'The crisis will continue for as long as Zanu-PF does not want to share power. The Zimbabwean intelligentsia do not recognise the continuing role of Zanu-PF and President Mnangagwa. 'Normality in Zimbabwe will come when Zimbabweans agree among themselves that Zanu-PF does not have the right to lead Zimbabwe. 'For as long as the crisis exists, Zimbabweans will live in Botswana, South Africa and other neighbouring countries because the Zimbabwe economy is terrible.' He said the Southern Africa Development Community (SADC) leaders 'have been mutually protecting each other'. 'Those like Zambian President Hakainde Hichilema, who criticised the arrangement with Zimbabwe, have been ridiculed by SADC members for likening Zimbabwe to the Titanic sinking. Citizen participation Prof Zwelinzima Ndevu, a public leadership expert from the University of Stellenbosch, urged Zimbabweans to 'play a more active role in the country's affairs'. 'Elections failed to produce the desired outcome, with change in leadership not achieved. There is a need for an impact-driven grassroots movement to focus beyond politics on the general wellbeing of people.' NOW READ: Zimbabwean man killed in brutal hit-and-run in Rivonia
Bloomberg
23-03-2025
- Business
- Bloomberg
Zimbabwe Seeks Sponsors to Help Clear Arrears, Sunday Mail Says
Zimbabwe is seeking possible sponsors to provide technical support, guarantees and funding for clearing its arrears with international creditors, the Sunday Mail reported. The process to clear arrears is expected to start after a nine-month International Monetary Fund staff-monitored program, which is set to be signed off by the end of this month, the Harare-based, state-run weekly newspaper said.
Zawya
14-02-2025
- Business
- Zawya
Zimbabwe starts paying for farms it seized to meet compensation deal
Initial disbursements were made to Denmark, Germany, Netherlands, Switzerland and the former Yugoslavia last month for 94 farms that were taken, Finance Minister Mthuli Ncube said. Fifty-six farmers from those countries, which had bilateral investment-protection agreements with Zimbabwe, were also paid. 'Payments are being made to the claimant's bank accounts of choice,' Ncube said in a statement on Friday. The payments are 'a critical step' toward Zimbabwe revamping its debt, he added. The southern African nation has been locked out of international capital markets since 1999 after it defaulted on debt from lenders including the World Bank, Paris Club and African Development Bank. The Treasury is using $20 million set aside in last year's budget to make the initial payments, and will make multi-year fiscal allocations until 2028 to pay off the remaining $125 million that is owed, the finance minister said. Harare-based ambassadors from Germany, Netherlands and Switzerland welcomed the move, saying 'several affected investors have received initial payouts,' according to the statement. 'An emerging sense of closure exits.' An International Monetary Fund team is in the country to determine whether to place Zimbabwe on a so-called 'staff-monitored program,' that would also be pivotal to securing a debt overhaul. © Copyright The Zimbabwean. All rights reserved. Provided by SyndiGate Media Inc. (
Voice of America
27-01-2025
- Politics
- Voice of America
Zimbabwe's war veterans demand President Mnangagwa's resignation
A group of Zimbabwe's liberation war veterans has called on President Emmerson Mnangagwa to step down. The veterans, affiliated with the ruling Zanu-PF Party, accuse the president of nepotism, corruption and failing to address the moribund economy. Zanu-PF Party leaders say they are not taking the calls seriously. At a press conference streamed online, Blessed Runesu Geza, a veteran of Zimbabwe's 1960s and '70s liberation war and a member of Zanu-PF's central committee, called for the president to step down immediately. He accused Mnangagwa of failing to live up to the promises he made in 2017 when he came to power with the army's help. Geza said many of those who died fighting for the country's liberation do not have decent graves and that the country is being turned into 'a banana republic.' He also spoke of looting and the struggles of people in the country. 'We are saying — as war veterans — enough is enough. You have shown that you have failed. It can't get any worse,' he said in Shona at the press conference. 'Corruption has become a security threat because these people are being protected by Emmerson. So, as war veterans, including masses, we are being asked, 'Why did you give us this kind of a person? We no longer like him.' So, we are pleading with you: Leave peacefully. If you don't, people will use the constitution for you to go.' In an interview with VOA, Zanu-PF spokesman Farai Marapira dismissed the calls for Mnangagwa to step down. 'The party position is clear; the party position is given to clear channels. So, we cannot dignify rogue rantings by responding to them,' Marapira said. 'People who speak their mind outside of the party, that's part of democracy. But the position is clear: We had a conference, and that is what we will deal with, and that is what we work with, and anything else is just ranting.' At a recent Zanu-PF conference, party leaders passed a resolution that Mnangagwa should seek a third term in 2028, assuming the party can force through amendments to the constitution. In an interview with VOA, Eldred Masunungure, a political professor at the University of Zimbabwe, said the war veterans are feeling genuine frustration, as things have not worked out the way they expected after Mnangagwa toppled Robert Mugabe in November 2017. 'The political clouds are extremely difficult to read under the circumstances, but what is clear [is] they expressed in unambiguous terms their exasperation with the way things have been going on in the last couple of years in the second republic,' Masunungure said. 'That is certain. But the outcome of what they are doing, what they are advocating for, that is — in my view — deeply uncertain.' The second republic refers to Mnangagwa's presidency after Mugabe's 37 years in power. Brighton Chipamhadze, a Harare-based independent political commentator, said Geza's announcement shows the divisions within the ruling party. 'As Comrade Geza points out, there are certain individuals benefiting from Mnangagwa's rule, calling for [an] extension of Mnangagwa's term,' Chipamhadze said. 'Yet there is also a section of the ruling party which is against Mnangagwa extending his term of office.' Zimbabwe's constitution, adopted in 2013, allows parliament to impeach and remove the president if lawmakers feel he is incapacitated. Mnangagwa is one of Africa's oldest heads of state. In 2028, he will be 86 years old.
