HARARE – Business partners Moses Mpofu and Mike Chimombe were on Wednesday convicted of defrauding the agriculture ministry of US$7 million in an US$87 million goat supply tender using a non-existent company.
The pair, appearing before Justice Pisirayi Kwenda, had entered “not guilty” pleas.
They now await sentencing on October 31.
Mpofu denied the allegations insisting that the dispute was a civil matter, and the state erred in charging him in his personal capacity instead of their company, Blackdeck.
Chimombe denied being involved in the foiled deal arguing that he was only there to assist with deliberations as a member of a black empowerment pressure group.
Their lawyers insisted that the two men had been targeted in a complex capture of the legal system by their former business partner, Wicknell Chivayo, who blamed them for leaking audios on which he was heard stating that he had bribed several government officials to secure contracts for the supply of election materials, including chief cabinet secretary Martin Rushwaya, former Central Intelligence Organisation boss Isaac Moyo and Zimbabwe Electoral Commission chairperson Justice Priscilla Chigumba, among others.
Chivayo has claimed on social media that the two men will go to jail for 20 years.
Kwenda said the two acted in common purpose, and shared the guilt.
“A company is just a person in terms of the law. It’s really not a natural person created by God. It being a fiction, you can’t touch it. It does not have a brain of its own, it does not think or act on its own, so it’s very difficult to separate the acts of a company from the acts of the person who represents it,” the judge said.
“Mpofu must have been aware of his obligation. He submitted a bid which contained falsified information, which confirms that he was liable. He should have called witnesses to confirm that he was not involved in the submission, but he did not do so.”
The judge also criticised Mpofu for failing to call witnesses to support his defence, despite having promised to do so initially, ruling that this showed that he had no defence at all.
“He knew these witnesses were important as he was being charged in his personal capacity. His decision not to call these witnesses was his own, except that one witness had died, which was not verified by production of evidence,” the judge said.
“Where a litigant threatens to call witnesses to confirm his defence and later abdicates, the usual inference is there was no intention to call that witness, or that the witness, if called, would not confirm that defence.”
Kwenda said that where presumption gives rise to criminal liability, “the onus is on a litigant to prove that he did not play a part.”
Regarding Chimombe, the judge said the businessman tried to hide behind a finger by denying involvement, yet witnesses confirmed that he would attend meetings.
“The second accused person strenuously denied he had much involvement in this scheme. We must resolve that factual dispute, and that can be rectified by reference to the testimony of witnesses,” Kwenda said.
“The witnesses, John Bhasera (agriculture ministry secretary) and Nhundurwa, said they would attend meetings together. We therefore found that he participated. We did not find his explanation convincing. If he said he attended meetings with Nhundurwa, that would have nothing to do with lobbying for an award for Blackdeck because it had already been awarded.”
Kwenda rejected the claim that Chimombe attended meetings merely to resolve disputes as a member of the Economic Empowerment Group (EEG).
Queried the judge: “There was clearly another reason for this. Why would he be there to attend a business meeting? It shows he had a mandate.”
Kwenda concluded the two were main players and found them both guilty of the allegations.
Mpofu’s lawyer Ashiel Mugiya said they respect the judgement, “but we are not happy with it.”
He told reporters outside court: “We will appeal at the Supreme Court after sentencing and we believe we have a number of good grounds for appeal.”
Mugiya was instructing Professor Lovemore Madhuku.
Tapson Dzvetero represented Mpofu.
The National Prosecuting Authority argued during the trial that the two men, through a company called Blackdeck Private Limited, responded to a September 2021 call by the ministry of lands and agriculture inviting bids for the supply of 632,001 goats under a scheme worth US$87,757,16.
The goats would be distributed nationally, with beneficiaries passing on the animals to the next needy household after kidding.
Prosecutors say after winning the tender, it was Blackdeck Livestock and Poultry Farming, an unregistered company, which signed documents with the ministry.
Mpofu represented the company and Chimombe acted as a witness.
On further review of Blackdeck Private Limited’s documents, it is alleged that the company had no valid tax clearance certificate from the Zimbabwe Revenue Authority for 2021, and that a QR code attached to the National Social Security compliance certificate belonged to a different company called Skywalk Investments.
Both documents were required for one to be eligible to bid for the tender.
Acting on the misrepresentations, prosecutors say the ministry went on to pay 30 percent of the contract in the local currency, an amount of ZWL1.6 billion which was allegedly equivalent to US$7,712,197 in two instalments on April 21, 2022, and June 29, 2022.
Following delays in delivering the goats, the ministry engaged Blackdeck and was informed that the company had mobilised 32,500 goats across the provinces which were ready to be distributed to the final beneficiaries.
A verification process by the ministry at various sites, it is alleged, however showed that the company only had 3,713 goats.
“After the ministry of lands realised that they were being deceived by the accused persons they then cancelled the contract on August 29, 2022,” charged the NPA.
To date, the prosecution says 4,208 goats worth US$331,445.25 have been delivered and the ministry was prejudiced of US$7,380,751.85.
Mpofu also argued that the money, paid in a very unstable local currency at the time, depreciated before it could be used for buying goats. At the time of their arrest, the two men said the contract was still running, and the ministry had not declared a breach. In fact, they were seeking to renegotiate it due to currency losses.
The post Court rules Chimombe, Mpofu guilty as they await sentencing appeared first on Zimbabwe News Now.