Former Hwange boss arrested over fraud

Former Hwange Colliery Company managing director, Fred Moyo was arrested Monday night on fraud charges involving the embezzlement of funds close to US$3 million from foreign partners in a gold mining venture in Shabanie.

He was being held at the Rhodesville Police Station. Assistant Police Commissioner Oliver Chibage is said to be handling the case.

Moyo is said to have taken loans (US$2 million from ZB Bank and US$700 000 from Stanbic) using company documents without the knowledge of the other Ox Mining partners Dirk Benade and Sydney Steyn.

The former HCC boss reportedly managed to pay only $850 000, contravening the purchase agreement which required full payment of the purchase price by end of June 2011, thereby making the sale null and void.

Police spokesperson Assistant Commissioner Charity Charamba confirmed the arrest saying Moyo will appear in court later in the week.