South African probe reveals Zimbabwe’s R1.1 billion election scandal linked to Chivayo
In a stunning exposé of alleged high-level corruption, a joint investigation by South Africa’s financial intelligence authorities has unearthed a massive corruption scandal where over US$40 million of Zimbabwean taxpayer funds, meant for critical election materials, allegedly flowed directly into the coffers of controversial businessman Wicknell Chivayo, a flamboyant and influential ally of President Emmerson Mnangagwa.
A probe by South Africa’s Financial Intelligence Centre (FIC), in collaboration with Zimbabwe’s Financial Intelligence Unit, centred on Chivayo and his involvement in contracts awarded to South African printing company Ren-Form CC ahead and during the 2023 harmonised general elections.
The FIC’s findings, detailed in confidential reports, allege that Zimbabwe’s Ministry of Finance and Economic Development paid over R1.1 billion (approximately US$61 million) to Ren-Form CC for the supply of election materials to the Zimbabwe Electoral Commission (ZEC).
Approximately R800 million of this amount was subsequently transferred to accounts belonging to companies owned by Chivayo, including Intratrek Holdings and Dolintel Trading Enterprise.
The FIC flagged Ren-Form’s bank accounts for “rapid movement of funds to various parties” following the receipt of payments from the Zimbabwean treasury.
“The rapid movement of funds through the bank accounts of the subject raised a suspicion, as it indicates possible layering of funds. The possibility that the funds may have derived from proceeds of the alleged criminal activity cannot be ruled out,” the report stated.
Allegations suggest Ren-Form significantly inflated the prices of election materials, including ballot papers, biometric voter registration (BVR) kits, and other supplies.
The difference between standard market prices and the inflated invoiced amounts is suspected to have been used to generate “commission” for Chivayo and his associates. For example, a central server invoiced at R23 million reportedly costs around R90,000 online.
The Ministry of Finance also made a direct payment of R156 million to Edenbreeze, a company owned by Chivayo.
“Furthermore, the business bank account of Edenbreeze linked to Wicknell Chivayo, received two large payments totaling R156 million from the Zimbabwe Ministry of Finance and Economic Development.
Large amounts were immediately transferred to other businesses, including that of the subject,” the report further noted.
Analysis of Chivayo’s accounts revealed significant payments towards personal expenses, including luxury car purchases (over R36 million), and payments to various companies and individuals.
Notable payments include large transfers to Asibambeki Platinum Group (R351 million), and other companies such as Kumba Group (R28.8 million).
Against this background, the FIC investigation raised concerns about potential money laundering, citing round amounts being transacted, luxury purchases, and transaction activity not in line with the profiling information of the account holder.
The FIC identified 121 inward and outward bound International Funds Transfers (IFTRs), totaling R10,518,047.35, raising further concerns.
A suspicion was also raised when Chivayo refused a recalled payment to his Absa account.
“A suspicion was reported on Absa Bank account 4097885459, due to an instruction received from a foreign bank to recall a payment but the account holder refused for the funds to be debited.
“Analysis of the Business Essentials account number 4097885459 was performed for the period 01 September 2024 to 16 September 2024. On 16 September 2024, the account received a foreign payment for an amount of R94 338 825,90 from the Ministry of Finance and Economic account number 1200800010003 held at Reserve Bank of Zimbabwe. Payment was reported under BOP category ZZ1 (Non Reportable). On the same day, funds were debited by means of journal debit with reference EDENBREEZE.
“It was noted that on 31 July 2024, the account received a foreign payment for an amount of R62 556 226,80 from the Ministry of Finance and Economic account number 1200800010003 held at the Reserve Bank of Zimbabwe.
“Payment was reported under BOP category 242 (Architectural, engineering and other technical services). Funds were transferred to account holder’s Depositor Plus account number 9383422695.
“The second foreign payment received from the Ministry of Finance and Economic in Zimbabwe raised a suspicion, due to first payment being recalled by the same remitter,” the report further highlighted.
The contracts awarded to Ren-Form CC were reportedly secured without going through a public tender process.
Allegations of bribery and corruption emerged following a fallout between Chivayo and his business partners Moses Mpofu and Mike Chimombe, leading to leaked audio recordings and WhatsApp messages.
The FIC has forwarded its findings to the Reserve Bank of Zimbabwe’s Financial Intelligence Unit, the South African Revenue Service, and the South African Police Service for further investigations.
