Makamba charged with 22 counts of forex fraud

Makamba charged with 22 counts of forex fraud

• Makamba arrested

• Chiyangwa arrested

• Msika warns Chiyangwa

• Chiyangwa threatens cop in court

• Chiyangwa implicated in ENG scandal

• Zanu PF bids to oust Msika

• ENG directors charged with fraud

• Banks face collapse

• End of era for forex dealers

• Gono new RBZ governor

• Tea boy to national purse

By Caiphas Chimhete
16/02/04
PROMIMENT businessman James Makamba, who is being charged with 22 counts of externalising foreign currency, on Saturday became the first victim of harsh new anti-corruption regulations when a Harare magistrate ordered his further detention in custody until February 27.

Lawyers for the wealthy businessman had on Friday made an urgent application in the High Court to have him released. He had spent about 100 hours in police custody being shuttled between police cells at Harare Central, Goromonzi, Morris Depot, Tomlison, Rhodesville, Braeside and Beatrice police stations, without being charged.

High Court Judge Justice Alphas Chitakunye, in his ruling over the Friday afternoon application, yesterday morning referred the matter back to the Magistrates' Court where the businessman was finally charged with 22 counts half of them in his personal capacity of externalising hard currency. Harare magistrate Jackie Mushonga ordered that Makamba be remanded in custody according to the new regulations which say a person accused of externalising foreign currency among other crimes may be detained for a period of seven days, and more days later, from the date when an order for further detention is issued.

"The accused has been remanded in custody to the 27th of February of this year on the basis of the new legislation," said Mushonga, whose declaration shattered the hopes of Makamba's wife and several relatives and friends who packed Court Room 6.

The heavily-built businessman, clad in a blue bomber jacket, navy blue trousers and black shoes, was led away by prison guards. His lawyer, Godfrey Mamvura of Scanlen and Hoderness, said the police had deliberately waited for Friday's new statutory instrument on graft to come into effect in order to take away the court's power to grant Makamba bail.

"I can rightly call it 'the James Makamba Statutory Instrument' - this is a gross violation of the accused's constitutional right to his liberty," said Mamvura.

Under the new graft regulations, an accused person can be detained for up to 30 days before being charged if police insist they want to continue investigations. Mamvura pointed out that Makamba had voluntarily handed himself to the police when he came back from a business trip to South Africa but despite that gesture, "the police continued to treat him like a fugitive".

Makamba, a former DJ and a successful businessman, owns supermarkets, farms, security firms and several other properties in Bindura and Harare. He is also the non-executive chairman of mobile phone operator, Telecel Zimbabwe. Makamba is a member of Zanu PF's Central Committee, a former provincial chairman of the governing party in Mashonaland Central and a former Member of Parliament for Mt Darwin.

According to his lawyers, Makamba was arrested at 10 AM on Monday after returning from a business trip to South Africa. Police had in the meantime advertised on radio that they wanted the businessman for questioning, as if he was a dangerous fugitive on the run. Heavily armed police and CIO officers swooped on his residences and properties "armed to the teeth," according to his lawyers in the early hours of Monday morning before Makamba surrendered himself to the police.

Makamba's Harare home, in the up-market suburb of Kambanji, was raided by more than 50 heavily armed police while his offices were sealed. As he arrived at the Magistrates' Courts yesterday, Makamba who was guarded by eight armed police officers tried to put a brave face but one could see a tormented soul behind his ready smile. The businessman's lawyers say he only knew of the charges that he was being held for on Friday about 96 hours after detention and said his detention was unlawful because he was a non-executive chairman of Telecel.

Earlier on yesterday, Justice Chitakunye had deplored the high-handedness of the police when dealing with Makamba. "Such conduct may tend to taint the intentions the police may allege to have," said Justice Chitakunye, making his ruling over the Friday hearing. The judge then ordered that Makamba be taken for a remand hearing at the Magistrates' Court at 12 noon yesterday, failure of which he was to be released at 12:30 PM of the same day.

Opposing Makamba's application for release on Friday evening, Joseph Jagada of the Attorney General's office who constantly consulted the officer co-ordinating the investigations, an Assistant Commissioner Gora had said Makamba was externalising foreign currency between 2001 and part of 2004.

"He, together with others, was selling foreign currency to Telecel Zimbabwe, at black market rates, which would externalise it," said Gora.

In one case, said Gora, a Banket commercial farmer Mr Mudheredhe exported maize and deposited the proceeds in a Luxembourg Telecel account. He would then be paid in local currency using black market rates. "The case involves extra-territorial boundaries that is why it has taken long," said Gora, who added: "The police are not vindictive to Makamba. We know the contribution he has made to the country, we just want justice to prevail."
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