Ex-Hwange boss granted bail

HARARE - Ex-Hwange Colliery Company (HCC) boss Fred Moyo has been freed on a $1 000 bail by Harare magistrate Don Ndirowei after being accused of swindling a gold mining company of $2,5 million-plus.

With Moyo’s alleged accomplice named as self-styled South African financier Paul Diamond, the court heard that the group’s company Gold Recovery Group (GRG) entered into a share sale and purchase agreement with Ox-Mining (Private) Limited (Ox) in April 2011.

While the new investor allegedly paid nearly $1 million as a commitment fee for the acquisition, it failed to pay the outstanding $1,7 million balance by June 2012 despite using the Kadoma-based miner’s assets to acquire $2 million from ZB Bank Limited (ZB).

Under the envisaged equity deal, Moyo’s GRG had also promised to pay off Ox’s Stanbic Bank (Stanbic) loan as part of the purchase agreement.

In all these transactions, Ox was represented by Sydney Aubrey Steyn, who also claims he was displaced as a director.

Of the ZB facility, Moyo and company used up a significant amount of the money — on yet undisclosed company business — and left a balance of $348 000.

Using the same modus operandi, the incoming investors approached Stanbic in August last year and borrowed $700 000, which they also secured using the same assets that used to secure a loan from ZB.

According to the charge sheet, GRG allegedly offered Stanbic unlimited guarantees in the name of Steyn and one Dirk Benade, another Ox executive.

But Moyo and Diamond failed to pay the full purchase price, resulting in the cancellation of the agreement.

And after the termination of the deal, it was discovered that the two had fraudulently effected numerous company directorship changes and due to the misrepresentations Ox allegedly lost close to $3 million. - Ivan Zhakata

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