Zimbabwe’s finance chief Guvamatanga embroiled in US$200m looting scandal

HARARE – George Guvamatanga, Permanent Secretary for Finance, Economic Development and Investment Promotion, has become the focal point of allegations involving over US$200 million dollars in potentially irregular financial transactions, according to leaked official documents and investigative reports.

Two separate cases have emerged, raising concerns about the management of public funds and potential corruption.

Valley Seeds Loan Guarantee

A leaked letter dated March 24, 2025, reveals that the Ministry of Finance, under Guvamatanga’s signature, provided a government guarantee for a US$20 million loan facility extended by Ecobank Zimbabwe to Valley Seeds (Private) Limited. The letter confirms a legacy debt of US$191,578,835.56 owed by Valley Seeds.

The scandal was exposed by prominent investigative journalist Hopewell Chin’ono.

The Ministry committed to reducing this debt by US$5 million monthly through Valley Seeds’ account and authorized Ecobank to directly debit up to US$5 million from a Ministry of Finance account in case of payment delays.

Valley Seeds is reportedly linked to President Emmerson Mnangagwa’s nephew, Temba Nkatazo.

Chin’ono has raised concerns about the lack of transparency and potential cronyism, state capture and corruption.

“This is highly controversial in public finance terms because it tied state funds to a private company without clear public accountability, which is an undeniable act of corruption and cronyism, especially considering the large figures involved and the government’s economic struggles.

“This also raises serious concerns about transparency, as there is no explanation at all of how Valley Seeds was selected, what public benefit the deal serves, all know is that it is run by Mnangagwa’s nephew and that it was used to loot public funds during Command Agriculture days.

“This is an act of cronyism and state capture, particularly because the company has political ties.

“The structure put in place by Guvamatanga bypasses parliamentary oversight and violates public finance principles by committing future government revenues to a private debt servicing at a rate of US$5 million per month,” Chin’ono stated.

He added: “In a country facing a catastrophic healthcare crisis, underpaid civil servants, and failing infrastructure, such a public finance financial burden is reckless, corrupt and unsustainable.

“It also undermines the integrity of the banking system by encouraging politically motivated lending and shielding private entities from accountability, making this a glaring example of the misuse of public funds for private gain.”

Gaingrid Investments Gold Payments

Leaked documents obtained by The NewsHawks indicate a potentially irregular arrangement involving Gaingrid Investments (Private) Limited and gold procurement. Guvamatanga signed letters outlining a 5% incentive for Gaingrid on gold delivered to Fidelity Printers and Refineries.

A letter dated September 4, 2024, details a “cash pledge and collateralised facility” with Ecobank, stating that Ecobank agreed to discount US$60 million owed to Gaingrid.

The Ministry of Finance, however, committed to paying Gaingrid US$8 million monthly for 12 months, totaling US$96 million. A subsequent letter dated April 7, 2025, confirmed an outstanding amount of US$36 million, raising concerns about a US$40 million discrepancy.

Sources suggest a potential link between Gaingrid and gold dealer Pedzisayi “Scott” Sakupwanya, an ally of President Mnangagwa.

Critics, however, have questioned the transparency and fiscal responsibility of the arrangement, particularly considering the company’s limited public profile and the significant overpayment.

Former Finance Minister Tendai Biti has accused the current Treasury boss Mthuli Ncube and Guvamatanga of facilitating looting of public funds.

“Traditionally the Ministry of Finance plays an oversight role safeguarding public funds. Under Mthuli Ncube and George Guvamatanga, the gatekeeper is now the gate crasher.

“Treasury has become a hub of illicit crass extraction with no bounds nor limits. Parliament must do its job,” Biti stated.

In an interview with Nehanda Radio, social and political commentator Pride Mkono accused Guvamatanga of orchestrating massive looting of public funds, draining resources meant for essential public services like health, education, and transport.

He called for accountability, suggesting that these individuals should be kept on record for future prosecution and recovery of illicitly amassed wealth.

“Guvamatanga is at the centre of mass looting of the consolidated revenue fund,” Mkono stated.

“He is literally emptying the national cookie jar into the private hands of politically exposed persons through shady payments of government contracts corruptly awarded to cronies of those at the top.

“It is the ordinary people who suffer as essential public services like health, education and transport collapse.

“There is a need to keep a public record of these looters so that in the future they can be prosecuted and the billions they are amassing are recovered,” Mkono added.