Leaked letter exposes mystery US$4.2m payment to Scott Sakupwanya’s Betterbrands
HARARE – A leaked letter has revealed a substantial payment of over US$4.2 million from the Zimbabwean Ministry of Finance Secretary George Guvamatanga and Economic Development to Betterbrands Petroleum, a company owned by Zanu-PF Member of Parliament and controversial gold dealer Scott Sakupwanya, raising significant questions about government procurement processes and the use of public funds.
The leaked letter, first published by ZimLive, provides precise transaction details, listing the Treasury USD Tax Nostro Account Number as 5783600003612 and Betterbrands Petroleum’s ECOBANK account number as 5712000014236.
The direct payment from a Treasury Nostro account has also garnered significant attention. Typically, domestic banks use Nostro accounts to hold foreign currency in overseas banks, facilitating international transactions and trade.
Treasury’s direct instruction to debit such an account for a payment to a local company is likely to raise serious questions regarding the specific financial mechanisms and protocols involved, especially for a domestic transaction.
Former Finance Minister Tendai Biti has raised concerns about the direct payments to suppliers and instances where established tender procedures appear to be bypassed.
“The Ministry of Finance is a disbursing portal. Legally it only makes payments to Ministries or Votes as appropriated by Parliament through an Appropriation Act and as provided for in the Blue Book.
“A direct Treasury payment is prima facie illegal and unlawful. This is a sham and a scam,” Biti stated.
In 2022, Sakupwanya, was accused of being engaged by the Zimbabwe National Water Authority (ZINWA) to supply 50 million liters of duty-free fuel, allegedly without the process going to tender.
Nehanda Radio which was in possession of a letter from Zimbabwe Revenue Authority (ZIMRA) Commissioner General Regina Chinamasa reported on the matter.
The letter authorised two companies, Betterbrands Petroleum and Rocket Energy, to supply a total of 61 million liters of diesel for Mnangagwa’s Presidential Borehole Drilling Programme.
Betterbrands Petroleum, an arm of Better Brands Jewellery (BBJ), was noted to have 50 percent shareholding through Sakupwanya, with the remaining shares owned by Full Moon Investments.
Dated August 10, 2022, the letter, which was copied to Minister of Finance Mthuli Ncube and Chief Secretary in the Office of the President and Cabinet Misheck Sibanda, stated that ZINWA had embarked on the Presidential Borehole Drilling Programme to provide clean water and facilitate irrigation.
Due to foreign currency challenges, ZINWA engaged the two contractors to facilitate fuel availability in local currency through ring-fencing the 61 million liters of diesel: 11 million liters for Rocket Energy and 50 million liters for Betterbrands.
ZINWA was instructed to account for duty in local currency, monitor fuel supplies, and provide reports. The letter indicated that “Treasury authority had thus been granted for ZINWA to account for duty in local currency through the above-mentioned Agencies.”
ZIMRA was authorised to facilitate diesel importation through necessary administrative modalities pending applicable legislation. Monthly reports on imports and duty paid were required from ZINWA and the Commissioner to Treasury, ensuring transparency and accountability.
The letter was also copied to C. Mhini, Chief Director, International Cooperation, Tax and Financial Sector Policy; W. Matukani, CEO, National Oil Infrastructure Company of Zimbabwe; T. M. Mangondoza, Chief Executive Officer, Rocket Energy (Pvt) Ltd; and Scott Sakupwanya, identified as the Chief Executive Officer for Betterbrands Petroleum.
A source from the Ministry of Finance told Nehanda Radio at the time that the fuel deal did not go to tender because the government regarded it as a national project.
