Zimbabwe Consolidated Diamond Company (ZCDC) chief executive Mark Mabhudhu was suspended on Monday for allegedly stalling the corrupt purchase of the 33% shares of Kuvimba Mining House (KMH) in Great Dyke Investments (GDI), according to media reports.
NewsDay reports that Mabhudu was suspended by the ZCDC board for allegedly opting to travel abroad without first accelerating the acquisition of the KMH shares.
“The temporary suspension was meant to ensure that the decisions relating to the ZCDC/GDI transactions are made in the [shortest] turnaround time possible. Despite you fully aware of this position that was made in light of this critical assignment at hand, you proceeded to travel to Thailand, ” reads a suspension letter dated 27 February.
NewsDay claimed it had gathered that the ZCDC board chair Munashe Shava was also the chief executive and project leader at GDI, the company from which Mabhudu was reportedly forced to buy shares without conducting due diligence.
Unnamed sources cited by the daily alleged that Shava was trying to arm-twist Mabhudhu into accelerating the fraudulent purchase of shares pegged at more than $400 million.
The ministry of finance had approved the deal subject to due diligence being adhered to.
Mabhudhu is also accused of refusing to authorise a contract between ZCDC and the African Banking Corporation (BancABC), which had been engaged for advisory services as asset evaluators.
The bank had allegedly charged the diamond miner $2,9 million for its advisory services as well as invoices for any technical and legal experts that would have been contracted.
Mabhudhu is said to have told BancABC that the fees were too high and should not exceed $300 000.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
NewsDay reports that Mabhudu was suspended by the ZCDC board for allegedly opting to travel abroad without first accelerating the acquisition of the KMH shares.
“The temporary suspension was meant to ensure that the decisions relating to the ZCDC/GDI transactions are made in the [shortest] turnaround time possible. Despite you fully aware of this position that was made in light of this critical assignment at hand, you proceeded to travel to Thailand, ” reads a suspension letter dated 27 February.
NewsDay claimed it had gathered that the ZCDC board chair Munashe Shava was also the chief executive and project leader at GDI, the company from which Mabhudu was reportedly forced to buy shares without conducting due diligence.
Unnamed sources cited by the daily alleged that Shava was trying to arm-twist Mabhudhu into accelerating the fraudulent purchase of shares pegged at more than $400 million.
The ministry of finance had approved the deal subject to due diligence being adhered to.
Mabhudhu is also accused of refusing to authorise a contract between ZCDC and the African Banking Corporation (BancABC), which had been engaged for advisory services as asset evaluators.
The bank had allegedly charged the diamond miner $2,9 million for its advisory services as well as invoices for any technical and legal experts that would have been contracted.
Mabhudhu is said to have told BancABC that the fees were too high and should not exceed $300 000.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
