Mugabe's finance minister nabbed in graft blitz

MINISTER'S MANSION: The house being built in the posh Cape Town suburb of Llandudno for Zimbabwe Finance Minister Christopher Kuruneri, Picture: TERRY SHEAN

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By Agencies

POLICE in Zimbabwe arrested the country's finance minister early Saturday amid allegations he was illegally exporting hundreds of thousands of rands, pounds and euros to South Africa.

Christopher Kuruneri's arrest follows last week's announcement by President Robert Mugabe to crackdown on "economic saboteurs" he blames for contributing toward the country's downward spiralling economy.

Assistant Police Commissioner Wayne Bvudzijena confirmed the arrest but offered few other details. Under new regulations, Kuruneri may be held for up to 28 days without bail.

"All I can say is he will appear in court soon," Bvudzijena said.

State radio said Zimbabwean detectives were travelling to South Africa to investigate alleged violations between March 2002 and early 2004 of as much as $1.35 million Cdn in rands, pounds and euros. Rands are South Africa's currency, pounds are used in Great Britain and euros are the currency of the European Union.

Police are also investigating allegations the minister travelled on both Zimbabwean and Canadian passports in violation of new citizenship laws. The laws have already prevented thousands of white Zimbabweans from voting because they are of foreign descent. Kuruneri studied in Canada in the 1980s.

Under Zimbabwean exchange controls, money earned abroad has to be repatriated.

A South African newspaper reported earlier this year that Kuruneri was building a luxury home worth about $5.3 million Cdn in Cape Town.

Kuruneri said the property was only worth the equivalent of about $1.35 million Cdn funded from overseas consulting he had done 10 years ago.

Bvudzijena also said police wanted to question about 30 persons and organizations for alleged illegal foreign currency dealings with Zimbabwe's Treger group of companies, whose executives have fled to Britain.

The list includes the Anglican Church, the Salvation Army, a Roman Catholic priest, a Catholic church, and an educational and development trust.

Zimbabwe has been in deepening crisis since 2000 when Mugabe began seizing white owned farms for redistribution to black Zimbabweans.

Annual inflation is estimated at 602 per cent, one of the highest rates. The country also faces acute shortages of food, medicine, gasoline and other essential goods. Unemployment is estimated at over 70 per cent.
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