Maravi

(HERALD) Ex-diamond firm’s director Kurotwi on the run

Ex-diamond firm’s director Kurotwi on the run
By Peter Matambanadzo
Sunday, 09 January 2011 20:33

POLICE have launched a manhunt for former Canadile Mi-ners (Pvt) Ltd executive director Lovemore Kurotwi who is facing fraud allegations after he demanded back US$300 000 in legal fees paid to Mutamangira and Associates law firm.

Canadile Miners had — together with other companies Marange Resources, Zimbabwe Mining Development Corporation and the Minerals Marketing Corporation of Zimbabwe — paid the law firm fees for legal services rendered to them.

The companies were involved in a legal dispute with Afri-ca Consolidated Resource for over a year. ACR was trying to boot the companies out of the Chiadzwa diamond fields.

The manhunt for Kurotwi came after ZMDC chairman Mr Godwills Masimirembwa and former chairman of Cana-dile Miners (Pvt) Ltd Mr Cougan Matanhire filed a criminal complaint against him on Saturday at Harare Central Police Station under IR number 010560.

Deputy police spokesperson Chief Superintendent Oliver Mandipaka confirmed that a report was received at Harare Central Police Station.

“We confirm that we received a report although I don’t have any further details,” Chief Supt Mandipaka said. Sources say police visited Kurotwi’s house and he was not located.

“We confirm that his house was raided last night (Saturday) and he was not there.
“His lawyers’ offices were also visited in search of him but we could not locate him,” said the source who dec-lined.

However, his lawyer Mr George Chikumbirike said his client was not on the run.

“He (Kurotwi) phoned me this morning (yesterday) and informed me that police were looking for him. He is not on the run. He is out of town and I also tried to communicate with the police but failed because I’m at the farm where there is no network,” Mr Chikumbirike said.

He said as soon as his client was back in town, he would accompany him to the police.
Mr Masimirembwa also confirmed that they had jointly filed a criminal complaint against Kurotwi.

“I can confirm to you that we jointly filed a criminal complaint of attempted fraud against Kurotwi following his demands through his lawyers Chikumbirike and Associates.

“The police have been looking for him and we understand he is on the run,” Mr Masimirembwa said.

Kurotwi’s lawyers Chikumbirike and Associates wrote a letter to Mr Masimirembwa on Saturday in which the latter was demanding US$300 000 purportedly on behalf of Core Mining and Minerals (Pvt) Ltd and to Canadile Miners (Pvt) Ltd.

In the letter, Mr Chikumbirike claimed that Canadile Miners never authorised payment of the legal fees to Mutamangira and Associates law firm that acted for ZMDC, Mineral Marketing Corporation of Zimbabwe, Canadile Miners and Mbada Diamonds.

He further stated that the mining company, which is now allegedly defunct, had no legal obligation to pay the legal fees.

Canadile Miners had its mining licence cancelled after it emerged that it had misrepresented to Government that it had capacity to do mining in Chiadzwa.

But Mr Masimirembwa said work done by Mutamangira and Associates benefited ZMDC, MMCZ, Mbada Diamonds and Canadile Miners.

He said Mutamangira and Associates were the leading negotiators in the resolution of the Kimberly Process issues both in Zimbabwe and abroad.

“For without the able representation of Messrs Mutamangira and Associates for a period of not less than 12 months we would not have been able to secure the Kimberly Process certification and sell our diamonds as we have done and continue to do,” he said.

Mr Masimirembwa said there was nothing sinister in the payment of fees to a lawyer as other service providers who conducted a forensic audit of the Marange Diamond Reconciliation were paid US$600 000.

He added that if anyone had to be arrested it should be Kurotwi because he wanted to pocket US$300 000.

“If Government pays US$300 000 where will he put the money? Canadile Miners no longer exist and Core Mining is as good as defunct with the majority of directors on the run,” Mr Masimirembwa said.

Mr Matanhire also confirmed reporting Kurotwi to police adding that payment of US$300 000 to Mutamangira and Associates, a firm that was acting on behalf of the Attorney General’s Office, was above board.

“The legal fees I understand related to a myriad of legal challenges instituted by ACR and the Kimberly Process engagement since Marange Resources were under the KP ban,” Mr Matanhire said.

He said Mines and Mining Development Minister Obert Mpofu indicated that Marange, MMCZ and ZMDC foot the lawyers’ bill since it was a joint venture, which was operating through Canadile Miners and Mbada Diamonds.

He said during one of the meetings it was resolved that the three entities bear the costs in one-third portion each.

Further, Mr Matanhire said a meeting was held where Kurotwi and another executive, Yehuda Lictchi, approved the payment of the legal fees at the Canadile Miners Mount Hampden offices.

“Further to my telephonic discussions regarding the payment of the outstanding legal fees of US$300 000 payable to Mutamangira and Associates, please effect the payment from the Canadile Miners working capital retention. As you are aware they acted on instruction from the AG’s office, and hence we are liable for our portion.

Every other party has already paid. I have advised the lawyer to get in touch with you regarding the payment. If you could effect it immediately because it has been outstanding for some time now,” read an email sent to Kurotwi.

Mr Matanhire said the payment was then made on September 16, 2010 with the full knowledge and approval of Kurotwi.

“In the circumstances, Kurotwi and his attorneys are committing a fraud by making an unlawful demand for the payment of US$300 000 to themselves,” Mr Matanhire said.

He also said apart from it being fraudulent, the claim was malicious, given the fall out between Core Mining Minerals and Government.

Kurotwi is on bail facing charges that arose after he and five others allegedly misrepresented to Government that they had capacity to mine diamonds at Chiadzwa fields.

It is alleged that as a result of this misrepresentation Government was prejudiced more than US$10 million.

Labels: AFRICAN CONSOLIDATED RESOURCES PLC, ANDREW CRANSWICK, CANADILE MINERS, LOVEMORE KUROTWI

posted by MrK @ 6:49 PM