Chiyangwa named in ENG scandal

Chiyangwa named in ENG scandal

RESERVE BANK GOVERNOR GIDEON GONO

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By Staff Reporter
08/01/04
A TOP official in Zimbabwean President Mugabe’s ruling party and advocate for black empowerment has been sensationally named in the biggest financial scandal in Zimbabwean history.

Phillip Chiyangwa, a flamboyant businessman and MP for Chinhoyi was named in court as a 40 percent shareholder in the ENG asset management firm which collapsed last week after a whistle blower alerted the central bank to fraudulent activities at the company.

Chiyangwa was summoned to court Wednesday at the appearance of Nyasha Watyoka and Gilbert Muponda. He was asked to explain accusations that he attempted to interfere with police investigations and hid two luxury cars police have linked to the fraud case.

Michael Nyamazana, the whistle blower from the now defunct Century Discount House which was defrauded of $22 billion by ENG said he had been invited to a meeting at Chiyangwa’s office by Muponda.

"Chiyangwa said he had an indirect interest in ENG. He indicated that he was prepared to offer assets so that the discount house got its money back," Nyamazana told the court. “Chiyangwa said there was no cash but something could be worked out and suggested that he would make property available within 23 days.

"His interest in ENG extended to a number of shares that had been purchased…the shares, which were bought on his behalf amounted to 40 percent," he said.

He also told the court that during the course of the year they noticed that some companies linked to ENG which had the same directors were dominating the 20 top shareholders list.

‘‘We noticed these new entries and we inquired who was the owner. ENG confirmed they were their companies. They said the shares were purchased for Chiyangwa," Nyamazana told the stunned court.

In court, Chiyangwa claimed that he had been approached to mediate as member of the notorious black empowerment organisation, the Affirmative Action Group which has been behind the seizure of Asian businesses in the second largest city of Bulawayo.

"I got involved in this case when Nyasha phoned saying he wanted to see me and I thought it was any other business. On 22 December they came to my house and said they were rushing to a meeting. Watyoka and Muponda said they wanted to discuss with me but they hurriedly went away," Chiyangwa said.

Chiyangwa told the court that on December 27, he received a text message on his mobile phone from Watyoka stating that he Watyoka, Muponda and Elan Suisse were in a meeting with members of the Central Intelligence Organisation (CIO).

He further told the court that Watyoka called him around 10pm, saying the CIO officers had become violent. Chiyangwa later went to the police station where he saw the duo and the officer in charge of the station. Details of the meeting were not disclosed.

Defence lawyer Eric Matinenga has submitted in his bail application that Chiyangwa had intervened only to protect depositor’s interests, and to save the company from collapse.

The prosecution called Inspector Peter Magwenzi attached to the Criminal Investigations Department who was part of the investigating team who said that they recovered two cars from Chiyangwa’s house.

"We interviewed the two accused persons and at first they said they had three motor vehicles but it later turned out that they had seven motor vehicles.

"We then recovered two motor vehicles a BMW Z4 and another unidentified BMW which was being used by Chiyangwa’s son." The detective told the court.

Magwenzi however said the two suspects insisted that Chiyangwa had three cars, although he denied this and refused to surrender them to police.

"After we threatened to arrest him for trying to defeat the course of justice, he then indicated that the vehicles were with Vivian Mwashita (Mwashita is a former Zanu PF MP)," Insp Magwenzi said.

He said Cde Chiyangwa then facilitated that the vehicles be surrendered to CID Headquarters.

Other vehicles including a BMW X5, Mercedes Benz C320, BMW 330i, which were recovered were not registered in ENG’s name but individuals’ names and some other companies. The police say if the cars were acquired with investor funds then they should have been registered under the company name.
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