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(NEWZIMBABWE) Tsvangirai, cousin in $1,5m fraud probe

Tsvangirai, cousin in $1,5m fraud probe
05/08/2011 00:00:00
by Dumisani Muleya & Faith Zaba

POLICE are investigating Prime Minister Morgan Tsvangirai over an alleged fraud involving US$1,5 million in public funds released two years ago by the government to enable him to buy a mansion in the posh Harare suburb of Highlands.

The Criminal Investigation Department (CID) has opened a docket and is intensifying its probe in a case of alleged fraud which involves Tsvangirai and a close relative, Hebson Makuvise, Zimbabwe’s ambassador to Germany.

Tsvangirai and Makuvise, it is alleged, misappropriated US$1,5 million which came from the Reserve Bank of Zimbabwe (RBZ) in 2009 to purchase the house located at 49 Kew Drive in Highlands. The house, a double storey mansion, is currently under renovation to ensure it meets standards of quarters for a Prime Minister.

The Zimbabwe Independent reports that police are also investigating if Tsvangirai had engaged in double-dipping by taking money from the RBZ and Treasury for the same project. They also say besides the US$1,5 million, close to US$1 million could also have been released from state coffers for the purchase and development of the same property.
CID chief superintendent Alison Nyamupaguma is leading the investigation team.

The detectives have been to the RBZ, several banks and the courts and trawled documents in a bid to nail Tsvangirai. Nyamupaguma wrote to the RBZ on July 18 asking for help to gather more information.

Police recently obtained a warrant of seizure from the courts in terms of the Criminal Procedure and Evidence Act to facilitate their investigations, particularly to confiscate documents from the banks.

The case is so high-profile that Police Commissioner-General Augustine Chihuri is also personally involved. Chihuri and his detectives have written letters to relevant banking authorities mainly last month asking for information. Police also want to find out if Finance Minister Tendai Biti was aware of how the money was secured and used by Tsvangirai.

Details show that letters have been flying between top police offices, including that of Chihuri, and the banks as part of the investigations. The RBZ and four commercial banks, CBZ Bank, ZB Bank, BancABC and Interfin are involved in the case.

A warrant of seizure dated July 7 targeted at Interfin, one of the banks involved in handling the US$1,5 million during its various transfers through the banking system, says the police were looking for “documents and records which are required as exhibits in a criminal docket”. It says the information is “necessary for the purpose of investigating or detecting a case of fraud”.

Police spokesman Wayne Bvudzijena said he was “not aware” of the ongoing investigations.

Tsvangirai’s spokesman Luke Tamborinyoka said: “The Prime Minister remains unshaken about these allegations. If police are investigating the case, we wish them good luck!”

After the formation of the inclusive government in February 2009, there was a legitimate expectation on Tsvangirai’s part and the general public that the new Prime Minister would move into Zimbabwe House where Mugabe used to live as Premier between 1980 and 1987, before moving to State House as President where the late titular president Canaan Banana previously lived.

Since Mugabe had moved out of Zimbabwe House to his own privately-owned home in Borrowdale, Tsvangirai had the option to move into State House or Zimbabwe House.

However, Mugabe apparently blocked Tsvangirai from moving into either of the two. The Premier was reportedly angered by this and when the MDC-T temporarily withdrew from government in October 2009, this was one of the issues he raised with Mugabe, apart from the outstanding GPA issues and lack of communication between him and the President.

Investigations show that after he was blocked from moving into State House or Zimbabwe House, Tsvangirai – who currently lives in a modest mansion in Strathaven – then requested funding from Mugabe to buy a house. Although Tsvangirai wanted a bigger sum, Mugabe in November 2009 only cleared US$1,5 million for the project.

This came a few days after the MDC-T ended its boycott of cabinet and government following the SADC troika summit in Maputo, Mozambique, to deal with the problem.

Even though Tsvangirai was only given US$1,5 million, it was agreed that if more funds were needed to buy and renovate the house they would be provided later. It was not clear at the time how much the house and renovation would cost.

RBZ governor Gideon Gono played a major role in negotiating with Mugabe before the funds were released to Tsvangirai. The paper trail of the movement of the $1,5 million through banks shows the money was transferred from the RBZ in November 2009 into a holding CBZ Bank account.

After the US$1,5 million was deposited into a CBZ account, Makuvise, who is close to Tsvangirai, moved the money to a ZB Bank account. While in a ZB account, US$140,000 was withdrawn and used to buy a residential stand allegedly for Makuvise.

From ZB Bank, the funds – now US$1,349 million – were transferred again to BancABC into Makuvise’s personal account. While there, US$99,000 was withdrawn for unspecified purposes.

Later, the money – reduced to US$1,250 million – was further transferred from BancABC to Interfin into an account of a prominent Harare law firm whose attorneys have represented Tsvangirai.

Police battled with Interfin to secure documents and records. Some of the international banks involved in the transferring and clearing of the money included Standard Chartered Bank, New York, and National Westminster Bank, London.

Documents further show a series of withdrawals were made by Makuvise who gave his address as 3 Everette Close, Avondale, Harare. The withdrawals ranged from tens of thousands to a few thousands.

For instance, in a blitz of withdrawals, Makuvise on February 5 last year withdrew $10,000; another $10,000 on February 9; $8,000 on February 17, $7,000 two days later on February 19 and $11,000 on February 22.
The original sum was drawn down to negligible levels.

[Source: Zimbabwe Independent]

Labels: MDC CORRUPTION, MORGAN TSVANGIRAI

posted by MrK @ 5:17 PM