Authorities in Zimbabwe arrest company director over US$7.6m gas import scandal

HARARE – Grant Chitate, director of Grant Wellington Thulisa (Pvt) Ltd, has been arrested on charges of foreign exchange violations in connection with a US$7,669,864.12 gas import scandal that took place between 2019 and 2024.

Chitate and his company face charges for contravening Section 5(1) of the Exchange Control Act (Chapter 22:05) and Section 11(1)(a)(b) of the Exchange Control Regulations, S.I. 109 of 1996.

The charges stem from allegations that between January 2019 and December 2024, the company made unauthorized foreign payments totaling US$7,669,864.12 for the import of 9.4 million kgs of LP gas.

Investigations revealed a significant discrepancy, according to the National Prosecuting Authority. No corresponding payments were reflected in the company’s Zimbabwean bank accounts, and the local account balances did not align with the value of the imported goods.

This suggests that foreign currency was externalised without the required approval from the Reserve Bank of Zimbabwe.

Chitate appeared in court and was granted US$1,000 bail with strict conditions. He is scheduled to reappear on September 2, 2025, as investigations into the matter continue.

According to several studies, Zimbabwe has lost billions of dollars through illicit financial flows. These illicit flows, which include money from illegal activities like smuggling, drug trafficking, and tax evasion, have a significant negative impact on the country’s development.

Estimates of these losses vary, but all point to enormous sums. Between 2000 and 2020, Zimbabwe is estimated to have lost over US$32 billion. In a shorter period from 2009 to 2013, the estimated loss was US$2.83 billion.

A few years ago, the chairperson of the Zimbabwe Anti-Corruption Commission (ZACC) stated that the country lost an estimated US$3 billion in 2019 alone.

One study by the Brookings Institute also found that between 1980 and 2018, illicit financial flows from Zimbabwe amounted to 13.9% of its total trade.

In May this year, Prosecutor General Justice Loice Matanda-Moyo raised concerns about the devastating impact of corruption in Zimbabwe. She revealed that the country is losing a staggering US$1.8 billion annually due to corruption.

Matanda-Moyo, the former ZACC chairperson said these significant losses hinder the country’s ability to invest in essential sectors like industry, agriculture, education, and health.