CMED boss seeks discharge

HARARE - CMED managing director Davison Mhaka, fingered in a $2 700 000 fuel scam, yesterday gave notice of his intentions to apply for refusal of further remand at his next court appearance.

Mhaka, 49, is being charged with obstructing the course of justice and money laundering.

He allegedly hired a South African-based IT expert to manufacture documents in a bid to conceal the fraud.

He appeared before Harare magistrate Tendai Mahwe and was remanded to May 3 when the State has been obliged to furnish him with a trial date.

According to court records, Mhaka was responsible for procurement and distribution of fuel during his tenure in office.

Prosecutor Idah Maromo alleged that sometime in February 2013, CMED — through its fuel division — invited companies to bid for the supply and delivery of five million litres of diesel.

Four bidders, including First Oil Company Private Limited, responded. First Oil was represented by Alex Kudakwashe Mahuni and Alloys Nyamadzawo.

The court heard that on February 23, First Oil Company was awarded the tender to supply and deliver five million litres of diesel to CMED, according to State papers.

Mahuni reportedly handed CMED letters from Petrotrade and National Oil Company of Zimbabwe confirming that the two companies were holding the said fuel on behalf of First Oil.

On March 1, 2013, CMED transferred $2 600 000 into First Oil’s ZB account and also paid another

$100 000 on March 7 of the same year, the court heard.

The diesel was never supplied and CMED was prejudiced of $2 700 000, the State further alleges.

Mahuni and Maxwell William Katunga, who were signatories to First Oil bank account instructed ZB Bank to transfer $2 360 000 into Hong Kong Limited’s account number 11013768250901, held by Ping AN Bank Co Limited in China.

The court heard that ZB Bank indicated that the two confirmation letters from Petrotrade and National Oil Company were not enough to facilitate the release of money.

On March 5 2013, Mhaka and Brian Manjengwa, a fuel manager at CMED, allegedly wrote a letter to ZB bank instructing them to release the money before receiving the fuel.

It is further alleged that ZB Bank transferred the money to China but no fuel was supplied despite CMED’s efforts to make a follow-up on several occasions.

On July 2, 2013, CMED lodged a fraud complaint, leading to Mahuni, Katunga, Nyamadzawo and First Oil officials’ arrest.

The docket was said to have been with the Prosecutor-General’s office pending confirmation of the money transfer from EBG Hong Kong Limited Bank in China.

It is alleged that in a bid to defeat the course of justice by concealing the movement and disposal of the money, Mhaka allegedly approached an IT expert in South Africa and instructed him to manufacture company registration documents, the court heard.

Mhaka then took the “fictitious” documents to the National Procurement Authority in November 2015 in a bid to exonerate himself from the fraud case in which he was being implicated.

Comments (1)

Prejudicing the state approximately US$3million and the culprit enjoys comfort of his residence to the extent of conspiring to refuse further remand and given this scenario, one, is heard shouting the economy is on the rebound!!!!

Mukanya - 21 April 2016

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