Obert ‘looter’ Mpofu faces Parly grilling

Business, Headlines, News — By admin on November 7, 2011 2:15 pm

Parliament is set to grill controversial Mines Minister Obert Mpofu over stunning allegations that he demanded a staggering $10 million bribe to grant diamond mining concessions in Chiadzwa to a local consortium and a South Africa-based Investment Company, the Daily News has been told.

Mpofu, fresh from celebrating the Kimberly Process’ approval for Zimbabwean diamonds to be sold on the official market, is due to face the Parliamentary Committee on Mines soon, which so far has proved to be one of the most useful committees in Parliament.

The probe is based on a complaint by Core Mining director Lovemore Kurotwi, who in a letter to Parliament said some officials in the ministry of mines are turning away investors through “personal, selfish interests.”

Kurotwi, a director with Canadile Miners, a joint venture between government and Kurotwi’s Core Mining,  was arrested last year soon after telling President Robert Mugabe of Mpofu’s bribery demand.

Kurotwi is now being charged with fleecing government of $2 billion dollars, a charge the state says emanates from a foreign investor, BSGR’s refusal to invest the amount in Zimbabwe after government failed to meet the company’s demands. The demands included respect of property rights and a return to rule of law among other human rights considerations.

The $2 billion was never invested in Zimbabwe over the human rights dispute but Mpofu claims that Kurotwi misled him into believing that BSGR wanted to invest in Zimbabwe and the state says this amounts to fraud. The matter is before the High Court.

Mpofu claims that he never met the BSGR officials but documents seen by the Daily News not only show that Mpofu new about the deal but that he actually met the BSGR officials in Zimbabwe and South Africa. Correspondence seen by the Daily News also shows that Mpofu actually introduced the investors to government.

Kurotwi insists that Mpofu took away his company after he refused to part with the $10 million bribe he had demanded. Court documents also confirm the $10 million bribery scam.

The letter of complaint from Kurotwi seen by the Daily News partly reads: “ I met with Minister Mpofu in his Bulawayo office on March 27 2009 and discussed the intended investment into Chiadzwa Diamonds by BSGR/Core Mining.”

Kurotwi followed up the  meeting with a letter formalising his application for a joint venture between BSGR and the government through the Zimbabwe Mining Development Corporation (ZMDC) in investing in Marange diamonds.

“We had already agreed with Minister Mpofu on the intended investment after which Minister Mpofu then directed me to ZMDC as the relevant mining arm of government to now start the process of implementing of what we had already agreed.

“On 26 May 2009, Minister Mpofu wrote to Benny Steinmetz of BSG inviting him to come to Zimbabwe to meet the Head of State of Zimbabwe. A trip to South Africa was organised where Minister Mpofu, ZMDC staff and myself went to do a due diligence exercise on Core and Grandwell.

“I met Minister Mpofu first at Michael Angelo Hotel in Sandton, the night before the intended due diligence exercise and shared with him or itinerary. “In this whole process, the minister then asked me for a bribe of US$10 million and I told him I didn’t have any money,” wrote Kurotwi.

He said later, the minister started accusing him of unfounded allegations which led to his arrest and incarceration. He said the minister destroyed his companies and was now lying to the whole world and to the courts to ensure that he is completely destroyed.

“I as an investor agreed with the minister on the investment I went on to put in Chiadzwa. The minister himself referred me to ZMDC way after I had agreed with him and this reference to ZMDC was for mere implementation of what the minister and I had already agreed on.”

“If I did wrong, I am not denying that the law must take its natural course on me. My query is that the minister seems to have power even over the courts and acts with so much impunity that one is arrested at his command rather than the legal due process to take its course,” charged Kurotwi, who throughout the letter to Parliament pins down Mpofu as the problem in the debacle.

Kurotwi was initially arrested with ZMDC officials and charged with $10 million fraud but this was changed to $2 billion. The ZMDC officials are now expected to appear as state witnesses against Kurotwi.

However, it is understood that state lawyers are reluctant to pursue the case due to anomalies especially in Mpofu’s presentations of facts in which documents and letters, some he wrote contradicts what he wants the prosecution to pin Kurotwi on. Efforts to get hold of Mpofu were in vain yesterday and in the past he has said he will never speak to the Daily News. Daily News

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