Chiyangwa arrested in ENG scandal

Chiyangwa arrested in ENG scandal

CHIYANGWA

• Msika warns Chiyangwa

• Chiyangwa threatens cop in court

• Chiyangwa implicated in ENG scandal

• ENG directors charged with fraud

• Banks face collapse

• End of era for forex dealers

• Gono new RBZ governor

• Tea boy to national purse

By Staff Reporter
10/01/04
PHILLIP Chiyangwa, the showy parliamentarian and key member of President Robert Mugabe's ruling party has been arrested on charges he tried to prevent the arrest of two company directors accused of defrauding investors of billions of dollars, state television reported.

"Police have arrested prominent businessman and Chinhoyi member of parliament Comrade Philip Chiyangwa on allegations of obstructing the course of justice in the ENG saga," the Zimbabwe Broadcasting Corporation (ZBC) said on Saturday.

Businessman Chiyangwa is a provincial chairman for President Robert Mugabe's ruling ZANU-PF party.

Local media reported this week that he tried to block the arrest of two directors of asset management firm ENG Capital on fraud charges involving over 60 billion Zimbabwe dollars (about U.S. $73 million at the official rate).

ZBC said the flamboyant champion of the government's black economic empowerment drive would also be questioned on charges he threatened a policeman probing his involvement in the case.

Police chief spokesman Assistant Commissioner Wayne Bvudzijena said he could not immediately confirm the arrest.

On Friday a Harare magistrate rejected the ENG directors' bid for the case to be dropped and denied bail on the grounds they might abscond due to the gravity of the charges.

Chiyangwa took the witness stand in court to support the two men's bid for release, but denied having business interest in ENG or trying to interfere with police investigations.

He said he had merely tried to facilitate a political and legal settlement to the matter which would not damage black economic advancement.

The ENG directors are the first legal casualties of a crisis that has seen some banks grapple with liquidity crunches after a run on deposits by investors scared they might not survive a central bank crackdown on speculative currency trade.

Analysts say the crisis threatens the political careers and wealth of some of Mugabe's top backers in the business world.

They say the veteran leader -- battling an economic crisis blamed on government mismanagement -- could crack down on corruption, including within ZANU-PF, to ease pressure on the ruling party ahead of parliamentary elections next year.

The state Herald reported on Saturday that Vice President Joseph Msika had warned the government would deal sternly with "errant politicians who abuse their positions and threaten law enforcement agents".

Mugabe argues the economy has been sabotaged by local and foreign opponents of his drive to redistribute large tracts of white-owned commercial farms among landless blacks.
JOIN THE DEBATE ON THIS ARTICLE ON THE NEWZIMBABWE.COM FORUMS
editor@newzimbabwe.com