Rwodzi ,Mujuru and Interfin Bank money laundering web Part 4 of 10

Rwodzi ,Mujuru and Interfin Bank money laundering web Part 4 of 10
This is the fourth of a 10 part series meant to document the excessive asset grabbing and looting being done by the Farai Rwodzi-Mujuru-Interfin Bank Zimbabwe syndicate. This article covers a well documented gold deal that was exposed a few years back. It is important to clearly highlight deals like these as they are the ones that Interfin Bank Zimbabwe and Meikles Africa Chairman Farai Rwodzi has been benefiting from and assisting to lauder the proceeds. This should also accurately inform Interfin business partners such as MoneyGram International. Multi Choice Africa who they are dealing with. In addition entities such as Kingdom Meikles Africa chaired by Farai Rwodzi role in the on going asset looting and money laundering must be documented.

A highly detailed report by Catherine Philp a Diplomatic Correspondent and Graham Keeley in Barcelona, Spain alleged that Vice President Joice Mujuru has lost favour with Mugabe following reports that her daughter, Nyasha Mujuru del Campo, tried to sell 3.7 tonnes of gold and diamonds worth more than $15 million to a European company, Firstar. Mujuru was reported to be behind the deal and to have threatened the head of Firstar Europe, Bernd Hagemann, when he scrapped the deal.

The Vice-President of Zimbabwe has been accused of trying to sell millions of dollars in gold nuggets and diamonds in defiance of international sanctions.
Joyce Mujuru used her daughter as a go-between to seek a deal for the gold, according to Firstar, a commodities trader based in Britain, which says that it was approached in November.

Mrs Mujuru, , is among the 200 Zimbabweans specified by European Union and United States sanctions for alleged human rights abuses. The article entitled Gold and the General's Daughter
http://www.ocnus.net/artman2/publish/Dark_Side_4/Gold_and_the_General_s_Daughter_printer.shtml
Firstar claims that Mrs Mujuru’s daughter and Spanish son-in-law, Nyasha and Pedro del Campo, offered to sell 3,700kg of gold for $90 million to Firstar Europe Ltd, a precious metal dealer. At the present market rate, one kilo of gold sells for $30,700 (£21,500).

Mr del Campo allegedly e-mailed Firstar offering 3.7 tonnes of gold nuggets with a certificate of origin from the Democratic Republic of Congo and $15 million of diamonds without certification. He claimed to represent two commodities companies, Onesafara International and Berline Equities Corp. But over the course of the correspondence, it allegedly came to light that the real seller was Mrs Mujuru.

Bernd Hagamann, the president of Firstar, told The Times: “Our investigations showed who was really involved in the deal — Mrs Mujuru — who is on our blacklist. So we refused.”

Mr Hagamann said that when he told Mrs del Campo that he would not buy “blood gold” she offered to change the certificate of origin to Kenya.

“We have no interest in buying gold from people running a country where people are dying of cholera or from Congo, where the money from any deal would be used to buy arms to kill more people,” he said. “This is bloody gold. These people are criminals.”
Mr Hagamann said that after refusing to go ahead with the deal and telling the couple that he was reporting them to the authorities he received a telephone call from Mrs Mujuru.

“She said, ‘Some people will visit your house. You and your daughter will have problems’. But I was not afraid. It was funny. I told her she would have problems coming to Europe.” That’s a quote from the Times report.

The article entitled Zimbabwe's vice-president foiled in 3,600kg gold deal
http://www.timesonline.co.uk/tol/news/world/africa/article5796426.ece

Firstar posted the e-mail correspondence and documents concerning the deal on its website, saying that it wished to deter other blacklisted buyers. The documents included photographs of the gold nuggets and one of 13 diamonds ranging from one to five carats. E-mails between Mrs del Campo and Firstar detailed how the gold would be transported from Nairobi to Zurich once Firstar had paid $100,000 for transportation costs. A certificate of origin stated that the gold was from Lubumbashi, an area of the Democratic Republic of Congo with links to Zimbabwean officials. http://www.swradioafrica.com/Documents/Letter%20to%20Journalists.pdf

The case raises concerns about attempts by members of unsavoury regimes to break sanctions. Mrs Mujuru and her husband, Solomon, a former head of the national army, are among the wealthiest and most powerful people in Zimbabwe, with extensive mining interests, including the River Ranch Diamond Mines. The World Diamond Council has accused the company of trafficking blood diamonds by mixing them with Zimbabwean stones and smuggling them to South Africa.

http://www.zwnews.com/issuefull.cfm?ArticleID=20017
Farai Rwodzi has acted as financial Advisor and facilitator and custodian of the looted funds at Interfin Bank which he co-owns with the Mujurus and other related politicians.Most of the proceeds of the looting spree end up at Interfin Bank Zimbabwe chaired by Farai Rwodzi resulting in Interfin Banking Corporation always claiming to be “the cash rich Group” .Its clear where the cash is coming from.

This article appears courtesy of GMRI CAPITAL – www.gmricapital.com . It is original content generated for 3MG MEDIA – www.3mgmedia.ca .

Gilbert Muponda is an Investment Banker and Founder of GMRI CAPITAL . He can be reached at; www.ZimFace.com and www.facebook.com/muponda

Email: gilbert@gilbertmuponda.com . Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

Rwodzi ,Mujuru and Interfin Bank money laundering web Part 3 of 10

This is the third of a 10 part series meant to document the excessive asset grabbing and looting being done by the Farai Rwodzi-Mujuru-Interfin Bank Zimbabwe syndicate.

Initially the Mujurus grabbed River Ranch Diamond mine,then tried to block Econet licencing after failing to muscle in, grabbed Guy Watson-Smith’s 3,500-acre Agro-business south of Harare ,then grabbed Zimbabwe alloys from its management,then grabbed my bank Century/CFX and now trying to grab Kingdom Bank by kicking out its founder Nigel Chanakira through a scheme being executed by the Mujuru’s sidekick and errand boy Farai Rwodzi. Farai Rwodzi has the additional responsibility of laundering the proceeds of these looting schemes to appear legitimate and find their way into the banking system.

The extent of such greed and corruption is a clear sign why the Zimbabwe Economy will find it hard if not impossible to prosper if a handful of individuals representing 2 people try to own and control every meaningful business in the country. Through their various schemes and “any means necessary” tactics to take over businesses they forget that there is a limit to the efficiency that one group of Companies can achieve. Such greed will in the end resemble communism in-efficiencies and market failures.

How much sense does it make for one individual like Farai Rwodzi to try and control Century/CFX Bank, Kingdom Bank and Interfin Bank into one ? Is this not the same model that has just failed at ZABG? (http://www.zimtelegraph.com/?p=9175) and http://allafrica.com/stories/200911110058.html This is pure greedy and gluttony which is leading Zimbabwe’s economy to no-where because there is a limit to one individual can master in business. The use of force, intimidation and extra judicial means to cow competition makes it even worse for the Farai Rwodzi-Mujuru-Interfin Bank Zimbabwe Syndicate.
These events have been reported before.The repeated reporting of this, however, makes it impossible for sympathisers of Farai Rwodzi,Mujuru and Interfin Banking Corporation to claim later that they did not know of this excessive theft whose proceeds were mostly being routed through Interfin Bank chaired by Farai Rwodzi who is also Chairman of Meikles Africa Limited.

International firms like MoneyGram International and Multi-Choice South Africa should stop patronising Interfin Bank of Zimbabwe and do the right thing—just as Credit Suisse Bank of Switzerland and Finance Bank of Zambia have done. These are international institutions that I wrote to directly when they tried to take over Century /CFX Bank confirmed that Century/CFX Bank was grabbed from me illegally. They did their own due diligence exercise to confirm the validity of my claim and the dispute before pulling out of any proposed investment in Century/CFX Bank .

According to Wikipedia (http://en.wikipedia.org/wiki/Joice_Mujuru) Vice President Mujuru “As minister of telecommunications, she tried to stop Strive Masiyiwa from establishing his independent cellphone network Econet .

Masiyiwa had been given an ultimatum by the cabinet to sell his imported equipment to his rivals. On March 24, 1997, Mujuru decided to issue Zimbabwe's second cellular telephone licence to the previously unknown Zairois consortium Telecel [3], cutting out Masiyiwa. The Zairois consortium included her husband Solomon and President Robert Mugabe's nephew Leo. After many legal fights, Masiyiwa won his licence in December 1997” The relevant link is here http://www.btimes.co.za/98/1018/world/world03.htm

Partly as a result she is very unpopular in Matabeleland because of the way she snubbed former Vice-President Joshua Nkomo over the awarding of the mobile phone licence when she was Minister of Posts and Telecommunications.

She ignored Nkomo’s instructions to award the tender to Strive Masiyiwa’s Econet, now the largest mobile phone operator in the country, and instead awarded it to Telecel a company owned by a Congolese and a local consortium that included her close associate then reportedly, a front for her husband, and President Robert Mugabe’s nephew Leo Mugabe.
Wikipedia and other respectable sources further allege “Joice Mujuru has been implicated in the attempted sale of up to 3.5 tonnes of gold from the Democratic Republic of the Congo (http://news.bbc.co.uk/2/hi/africa/7907177.stm) to a European company, in contravention of European Union sanctions on the part of that company”.The next article ( Rwodzi ,Mujuru and Interfin Bank money laundering web Part 4 of 10 ) in these series will look at this DRC Gold case in greater detail.
Farai Rwodzi has acted as financial Advisor and facilitator and custodian of the looted funds at Interfin Bank which he co-owns with the Mujurus and other related politicians.Most of the proceeds of the looting spree end up at Interfin Bank Zimbabwe chaired by Farai Rwodzi resulting in Interfin Banking Corporation always claiming to be “the cash rich Group” .Its clear where the cash is coming from.

This article appears courtesy of GMRI CAPITAL – www.gmricapital.com . It is original content generated for 3MG MEDIA – www.3mgmedia.ca .

Gilbert Muponda is an Investment Banker and Founder of GMRI CAPITAL . He can be reached at; www.ZimFace.com and www.facebook.com/muponda

Email: gilbert@gilbertmuponda.com . Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

Rwodzi ,Mujuru and Interfin Bank money laundering web Part 2 of 10

The extent and magnitude of the Farai Rwodzi- Mujuru –Interfin Bank Zimbabwe looting syndicate’s activities must be properly documented such that those assisting and partnering them in any business venture can not claim not to have known these activities. This includes leading brands such as MoneyGram International and Multi choice of South Africa who continue to turn a blind eye on the activities at Interfin Banking Corporation which includes a looted CFX bank in its structure .Interfin’s illegal take over of CFX Bank and subsequent false claims that $ US 5.3 million had been paid to me shows how this syndicate and its side kicks must be exposed and held to account for their asset looting and grabbing.

The Mujuru’s business associate and front Farai Rwodzi and Interfin Bank Zimbabwe is at the centre of the syndicate due to its role as the custodian of the looted proceeds and tasked with cleaning the proceeds into mainstream legitimate business.
Soon after independence, Solomon Mujuru is said to have told a group of his fellow Zezuru clansmen at the plush and former whites-only Harare Club, “I didn’t fight the liberation war to end up a poor man.” This fits well into the sagas that soon followed including the now infamous “steelgate” which named Mujuru’s wife and Vice President as chief looter at Zisco and the CFX Bank saga in which the Mujurus through their business associate and side kick Farai Rwodzi controversially took over my Bank Century/CFX. The Zimbabwe Independent, which has investigated Steelgate in as much depth as allowed by Zimbabwe's oppressive media laws, has described the scandal as the biggest since independence in 1980 and has alleged that it involves members of the state presidency, cabinet ministers, MPs and ZANU PF officials

It has been widely reported that Solomon Mujuru became the subject of the first prosecution for illegal seizure of a farm and its assets. Mujuru has never hidden his fortunes and even asked for exemption from the leadership code which tried to limit the wealth of party leadership.He has ruthlessly sought to own any and every meaningful business in Zimbabwe defying any reason or logic given how what ever businesses they own hardly show any meaningful growth or expansion.

His seizure of Guy Watson-Smith’s 3,500-acre farm south of Harare and his enrichment by selling off farm equipment originally purchased by Watson-Smith at a cost of 80 million dollars was ruled illegal by the Zimbabwe Supreme Court.

Ignoring court decisions it does not like has become one of the trademarks of the Mugabe government. Mujuru is still on the farm while Watson-Smith, now trying to rebuild his family’s life in France, continues forlornly and unsuccessfully to try to sue Mujuru.

The retired general has also been accused recently of illegally seizing the lucrative River Ranch diamond mine in southern Zimbabwe. In a court battle, Mujuru has been accused of “unlawfully and forcibly” taking over the mine.These events have been reported before.

The repeated reporting of this, however, makes it impossible for sympathisers of Farai Rwodzi,Mujuru and Interfin Banking Corporation to claim later that they did not know of this excessive theft whose proceeds were mostly being routed through Interfin Bank chaired by Farai Rwodzi who is also Chairman of Meikles Africa Limited.
Zimbabwe's Vice President, Joice Mujuru, has been let off scot-free after she was named in a National Economic Conduct Inspectorate probe on the plunder of the Zimbabwe Iron and Steel Company (ZISCO) in a report by the Zimbabwean Newspaper in may 2010 http://www.thezimbabwean.co.uk/index.php?
option=com_content&view=article&id=31050:corruption-of-the-inner-circle&catid=72:thursday-issue
As leaks about the Zisco affair multiplied, the National Economic Conduct Inspectorate, linked to the finance ministry and the Central Intelligence Organisation, CIO, compiled a report into allegations of asset stripping.
Vice President Joice Mujuru was sucked into one of Zimbabwe’s biggest economic scandals since independence, the Zisco Steelgate affair. She has been named in an official report claiming that she and her sidekicks were involved in the alleged looting and asset stripping of the state-run Zimbabwe Iron and Steel Company, Zisco.
Dubbed “Steelgate”, the tentacles of the Zisco looting and asset stripping affair has spread wider with every passing day. One source claimed Joice Mujuru, was in 2003 paid USD11 000 as allowances by the Zisco Botswanan subsidiaries, and received 30 000 litres of fuel (liquid gold!) from Zisco on her election as vice-president in 2004

Zisco is the largest steel plant in Africa outside South Africa. Based at Redcliff, just outside the Zimbabwe Midlands city of Kwekwe, steel production at the troubled plant has collapsed from 14,200 tonnes a month few years ago to less than 1,000 tonnes. Zimbabwe has been unable to attract the minimum foreign investment of 400 million US dollars needed to rehabilitate the increasingly derelict plant. Meanwhile, numerous methods have been allegedly used by top politicians to loot its remaining assets.

These have included claims that large amounts of foreign exchange have been allocated to top government officials led by Vice President Mujuru and their associates who said they were doing business on behalf of the company. Further allegations of abuse of company credit cards, bloated management fees and directors’ expenses as well as false claims for air fares, hotel bills, purchases and entertainment are said to have contributed to catastrophic losses.

Parliament's trade and industry committee, shocked by the withdrawal of GSHL and suggestions of massive government corruption, opened hearings into the Zisco affair.
At the first hearing on September 20, Industry Minister Obert Mpofu caused a sensation when he said that ministers and members of parliament had been looting Zisco and that this was why the Indian group had walked away from the deal. "While they [GSHL] were here, they discovered that the company was being bled," said Mpofu. "There were people that were making money from Zisco. There was a team sent in by the ministry of finance to investigate and they produced a thick document and you would be shocked if you see it.

"Some of the people are my colleagues in this chamber. Influential people have engaged in underhand dealings that have left the company bleeding."The Minister said when referring to Vice President Mujuru and her cronies named as chief looters of the steel maker.

Panic spread through the government, which moved quickly to prevent publication of the inspectorate’s report. Intelligence officials are understood to have advised President Robert Mugabe that releasing the report would jeopardise the country's hopes of attracting desperately needed foreign investment.
Report called Zimbabwean Elite Implicated in Zisco Scandal appeared here http://iwpr.net/report-news/zimbabwean-elite-implicated-zisco-scandal

The alleged looting of the Zisco steelworks is said to have been achieved, among numerous methods, by bid-rigging for contracts, and the allocation of large amounts of foreign exchange to top government officials and their associates who claimed to be doing business on behalf of the company. Huge sums in foreign currency are claimed to have been lost through overpricing by suppliers connected to big fish in government and the former ruling party linked to the Mujurus . Abuse of company credit cards, management fees and directors' expenses as well as false claims for air fares, hotel bills, purchases, and entertainment are alleged to have further contributed to huge losses.

Farai Rwodzi has acted as financial Advisor and facilitator and custodian of the looted funds at Interfin Bank which he co-owns with the Mujurus and other related politicians.Most of the proceeds of the looting spree end up at Interfin Bank chaired by Farai Rwodzi resulting in Interfin Bank always claiming to be “cash rich” when the whole economy is short of liquidity.The question is whose cash is that? And where did it come from?

This article appears courtesy of GMRI CAPITAL – www.gmricapital.com . It is original content generated for 3MG MEDIA.

Gilbert Muponda is an Investment Banker and Founder of GMRI CAPITAL . He can be reached at; www.ZimFace.com and www.facebook.com/muponda

Email: gilbert@gilbertmuponda.com . Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

CFX Bank saga takes new twist

HARARE – The ownership wrangle between leading Zimbabwean financial services group Interfin and exiled banker Gilbert Muponda took a new twist last week with allegations that the banking group misled the nation by claiming it has settled with the latter over his stake in CFX Bank which was acquired by Interfin.
Muponda told The Zimbabwean on Sunday that contrary to claims by Interfin chairman Farai Rwodzi, he was yet to receive the $5.3 million for 309 million shares illegally transferred to Interfin when the group acquired Century Bank – now called CFX Bank.
“Neither my legal representatives nor I have received compensation of any nature from Interfin, its directors or shareholders for the 309 million Century/CFX Bank shares embezzled from Century/CFX by Interfin,” Muponda said. He said Interfin was “blatantly misrepresenting the facts” in order to run away from meeting its liability and warned the financial group’s
international partners such as MoneyGram and pay-television provider MultiChoice of the possible risk from the fallout from the wrangle.
“I am sure Interfin are under serious pressure from a well known international financial services group to come clean on the
circumstances of their illegal takeover of my bank, CFX. “Interfin must act maturely and pay the US$ 5.3 million after which I and my lawyers will sign a letter of release and indemnity to confirm settlement has been made,” he said. Rwodzi could not be reached for a comment last week.

MoneyGram International strengthens Rwodzi ,Mujuru and Interfin Bank money laundering web

It appears that MoneyGram International is leading international corporate irresponsibility that has gone unpunished for too long in African countries.Huge American and international firms deliberately doing business with individuals who have looted and grabbed assets.By continuing to partner Interfin Banking Corporation despite knowing the disputed ownership of the Bank ,Moneygram is only confirming its blatant disregard of internationally accepted corporate responsibility expectations.
MoneyGram International officers should have been far more alert to the perception that they might benefit from exploitation of their brand and reputation by doing business with Interfin Banking Corporation which includes an illegally incorporated entity CFX Bank .

In my effort to recover my Bank illegally seized from me when at least 309 000 000 (million) and up to 900,000,000 (Nine hundred Million), Century Bank shares fraudulently converted into CFX Bank shares. The fraud was masked as a merger between Century Bank and CFX Bank but after the merger Century name was dropped to cover the tracks of the fraud.

The dispute was triggered by the special bargain sale of 309,000,000 shares on 12 May 2004 but the total shares owned by me and my Company were 900,000,000 the balance was transferred in peace meal fashion to avoid detection of the fraud and transaction laundering that was being perpetrated. Various transactions and Company re-organization schemes with the ultimate aim of sanitizing asset looting and illegal expropriation of my Bank Century/CFX have been going on with the latest being re-naming the Bank Interfin Banking Corporation.

Integrity capacity is the individual and collective capability for the repeated process alignment of moral awareness, deliberation, character, and conduct that demonstrates balanced judgment, enhances ongoing moral development, and promotes supportive systems for moral decision making (Petrick and Quinn 2000). It is one key intangible asset that acts as a catalyst for reputational capital and its erosion can jeopardize the survival and credibility of organizations and markets

Corporate managers are expected to maximize investor returns while complying with regulatory standards, avoiding principal-agent conflicts of interest, and enhancing the reputational capital of their firms.In this case MoneyGram International Management seem to be taking a casual approach to a very serious matter.This may have serious repurcussions on the 70 year old firm’s reputation especially in Africa where an elite class is seizing assets then going into partnership with Money Gram to gain international acceptability and good reputation by association.

Ethical literacy is all about recognizing potential ethical issues before they become legal problems ,this is why MoneyGram International need to trade carefully when dealing with a disputed asset such as CFX/Interfin Banking Corporation Zimbabwe.
The increasing level of managerial negligence and corporate irresponsibility as shown by both MoneyGram International Management and Interfin Banking Corporation has eroded domestic and global trust in Zimbabwe Financial system. If Chair man of Interfin Bank and Kingdom Meikles Africa Limited can publicly and falsely claim he paid someone US$ 5.3 million one wonders what else is being deliberately mis-stated to create a false impression to the Investing public ,international partners, shareholders and regulatory Authorities.

The neglect of managerial integrity capacity is at the moral root of Enron’s legal and financial problems. What is legally permissible today, but morally questionable, may well become legally proscribed tomorrow. Thus, it is important for managers to proactively understand and attend to the multiple dimensions and moral antecedents of illegal activity.

Managers can attempt to evade full moral accountability by compartmentalizing and fragmenting their handling of management and ethics issues This is both immoral and unacceptable.MoneyGram International,Farai Rwodzi and Interfin Bank’s actions are shocking and shows complete disregard for fundamental fairness.

The CFX/Interfin Bank Zimbabwe scandal involves both illegal and unethical activity and the courts of law will determine the precise extent of civil and criminal liability that accrues to the perpetrators.MoneyGram International need to keep this in mind.

The senior executives at Interfin Bank led by Interfin and Kingdom Meikles Africa Limited Chairman Farai Rwodzi believe had to be the best at everything it did and that they had to protect their reputations and their compensation as the most successful executives in the Zimbabwe market even using dubious and unethical means. When some of their business acquistions are not legally done and trading ventures began to perform poorly, they tried to cover up their own failures by issuing false and misleading news articles such as the one by Farai Rwodzi on 25 August 2010 in Newsday newspaper claiming Interfin Bank had paid Gilbert Muponda US $ 5.3 million for the CFX Bank equity stake.( http://www.newsday.co.zw/article/2010-08-25-interfin-acquires-13-of-starafrica ) .The Interfin and Kingdom Meikles Africa Chairman told Newsday Newspaper “The company last month paid Gilbert Muponda $5,3 million for equity allegedly transferred to the acquirer irregularly during the merger” .This is incorrect this money has not yet been paid to settle the CFX/Interfin Bank ownership dispute.

Interfin Bank Senior Management led by Farai Rwodzi appeared to be erroneously and overly confident of their initial distorted perceptions of morally acceptable business conduct, and when challenged, as regarding the appropriateness of his financial structure of reversing taking over a disputed CFX Bank, retaliated against accusers and sought to mislead the investing public,regulatory authorities and International firms such as MoneyGram International who have failed to carry out proper due diligence to verify claims by Farai Rwodzi that Interfin Bank has settled the ownership dispute by paying me US $ 5.3million .

When a senior executive like Farai Rwodzi Chairman of Kingdom Meikles Africa resort to making false claims his partners such as MoneyGram International, Kingdom Meikles Africa and fellow Interfin Directors should be alert and know the lack of intergrity exhibited by such claims.

Moral conduct, an important component of process integrity, is the individual and collective carrying out of justifiable actions on a sustained basis. Managers that exhibit ethical conduct develop a reputation for dependability and alignment of moral rhetoric and reality over time and make public statements based on fact and verifiable information.

This article appears courtesy of GMRI CAPITAL – www.gmricapital.com . It is original content generated for 3MG MEDIA.

Gilbert Muponda is an Investment Banker and Founder of GMRI CAPITAL . He can be reached at; www.ZimFace.com and www.facebook.com/muponda

Email: gilbert@gilbertmuponda.com . Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

ENG Capital to resume operations

Last week Investment Banker Gilbert Muponda sat down for an interview with Shame Makoshori, The Financial Gazette Chief Business Reporter discuss the recent High Court ruling returning ENG Assets.
Shame Makoshori – SM
Gilbert Muponda - GM
SM - What does the judgment mean to you and what is the way forward?

GM - The High Court quote from HC6086/09 “ENG companies and directors satisfactorily liquidated all debts past present and future accumulated by the company”. That is the important bit. Then the bit about excess cars and excess companies like Allied Conveyors being returned to us. The Master of High Court and liquidator confirm. This serves to confirm that ENG was only targeted by greedy individuals who wanted to grab its assets such as Century Bank which was renamed CFX Bank. This bank must be returned to ENG as other banks such as Trust, Barbican, Royal Bank have been returned to their original owners. There is no reason whatsoever why Century/CFX Bank shouldn’t be returned to me and ENG.

SM - Does this judgment pave the way for the return of ENG in Zimbabwe?

GM - It shows that ENG was solvent and financially solid. Yes ENG is being revived. We are working flat out for the re-launch around December 31. But it won’t be in Zimbabwe as I remain specified. I cannot be a director in Zimbabwe it will just be active outside Zimbabwe until despecification. But we are ready from day one (of despecification) to re-launch ENG Bank. ENG Bank will not take deposits from the public. It will be focused on investment banking and activities such as research, mergers and acquisitions and private equity. Our feeling is that Zimbabwe has enough traditional banks but it does not have a proper investment bank in the mould of Goldman Sachs and Black Stone. There are no meaningful deposits in the Zimbabwe market so most banks will struggle to get by because of mis-aligned cost structures and over staffing. Our model will focus on helping small companies get listed or raise capital instead of focusing on mobilising deposits that are not there. Zimbabwe's banking sector as it is right now can only be saved by the re-introduction of the Zimbabwe dollar maybe pegged to the RAND or US$ .Otherwise with people earning $200 per month and spending all of it there is no savings therefore nothing for the banks to manage.

SM - Have you engaged authorities in Zimbabwe to begin the process of your despecification, or you are awaiting the State to take the initiative?

GM - My lawyers have engaged the authorities about despecification and we are happy with the progress. We have positive feedback that things may be normalized soon to allow my safe return and re-launch ENG Bank.

SM- You have been vocal since the time you fled the country, complaining about the way your assets were handled. It should be a long and bumpy road to despecification, I suspect?

GM - Yes, I have been vocal, but that is the way one must be when unfairly treated by individuals abusing state authority. The High Court has spoken and confirmed my innocence. I think we must respect that and move on in the spirit of national healing and rebuild the country together. This is the time to work together and all gear towards re-branding Zimbabwe as a financial powerhouse of the Southern African Development Community region. I am not a politician and I am not interested in politics but at times politicians screw up so much that keeping silent would be a crime. I had to articulate my side of the story and how I felt we were being treated. This was very important because there was a false impression that ENG was a shelf company that owned nothing but cars. But as you have seen I have managed to highlight that ENG in fact owned many assets including Century. CFX Bank which I want returned to me and ENG.

SM - So this judgment means that when they said you abused depositors’ funds on joyrides to watch soccer matches in London they were lied? You were expending your own money?

GM - Those were totally false and fabricated allegations , the smokescreen that was used to create a contrived depiction of a mass scandal which was used to justify the blatant looting and asset stripping of ENG, including the callous misappropriation of our bank, Century/CFX by politically connected individuals.

I have never watched a match in the United Kingdom ,My favourite soccer team is Dembare so there is no way I could go to England to watch a football team I have no liking for instead of my one beloved one based in Mbare. That ridiculous story was totally false and peddled through the rumour mills by the very same persons who were busy raiding ENG assets.

Let me set the record straight - ENG never availed depositor funds to its directors for personal use nor did I as a officer of ENG exploit depositor funds for personal use. ENG did not take deposits from the public, ENG was a fund of funds which meant only other highly specialised Institutions dealt with ENG.

When we started ENG I was already financially secure. Prior to me starting ENG my record of Employment at NMB Bank is testimony to my financial expertise. I rose to be the youngest Head of Corporate Finance in the Zimbabwe market. At TN Financial Services I was the youngest director of any Financial Institution and at both institutions I owned equity.

ENG founders were a very focused and determined team and it is that spirit and hard work, that built ENG into a formidable entity in a short period of time.

The foreign travels mentioned were actually business trips undertaken by the directors of ENG – a company managing assets in excess of 160 million dollars exploring new markets in preparation for the anticipated launch of ENG Global. Instead innuendos, hearsay and unfounded accusations dripping with venom from all quarters fuelled the vilification of our otherwise solid financial institution. Alas ENG is a strong brand again and our focus for now is to rebrand and rebuild.

SM - And if you were innocent why did you run away. Why didn’t you say I am innocent, I will defend myself?

GM – Natural self preservation dictated my actions – I had to run away from a vicious system and greedy individuals who would have stopped at nothing in their quest to strip me of all my wealth and create my persona as a scapegoat and reason for the collapse of the financial system. Before and after ENG how many other financial institutions which ENG never dealt with collapsed? How many other innocent business persons have been incarcerated since?

My attorney, the late Mr Oscar Ziweni was harassed, intimidated and arrested for defending me and specified for taken my brief and in the end I had no legal representation. At that time the tumultuous atmosphere that had gripped the nation and the culpable political interferences in the ENG saga, presented a clear and present danger to me and my family which left me with no choice but to abscond and seek refuge elsewhere,, where I could then clear my good name in peace.

SM- You should have been targeted after creating enemies in the corridors of power? am I right?

GM- We were targeted because we did not have a political Godfather to protect us. You should know by now Zimbabwe is a class society there are people who feel they only deserve certain things and certain level of success. If you succeed without their help or involvement or they don’t know who you are that is cause of concern to them and the full state apparatus can be unleashed on you. I was an SME(i.e self made entrepreneur).

SM- The ENG brand has been soiled, and already the market in Zimbabwe is sceptical about the financial system. What gives you the confidence you will make it. Will you redress your brand, I mean renaming.


GM - The ENG brand remains strong .Since ENG was closed 6 years I havent seen any exciting and meaningful financial services brands coming out of Zimbabwe that as nearly strong. Yes it may have been affected by this immediate past but all strong brands are built by going through such events and forging ahead. ENG has settled all claims against it and there have been excess assets which we will use as the core of our new vision with the same name. Once Century/CFX Bank is returned to me and ENG we will restructure and rename it ENG Bank and model it similar to Black Stone and Goldman. Most banks are struggling in Zimbabwe because of their cost to income ratios which are totally out of line. In addition the Banks have failed to access foreign credit lines to inject liquidity in the market. ENG Bank will be in a unique position to access foreign credit lines because of the networks I have been developing over the last 6 years since I left Zimbabwe.

SM - It must have been pretty scaring being fingered in what authorities called big scandals at that tender age. Tell us how you felt then?

GM - I was obviously very disappointed because I felt we were building a solid business and a brand that would make Zimbabwe. I was still a very young man but highly experienced due to my previous working experience and having been mentored by Zimbabwe’s brightest financial brains and alongside highly talented colleagues possessing experience. So I feel that in some way I had been trained to handle the crisis as it unfolded.

SM - You should be at liberty to share with us how you outwitted police. Tell us the experience. A banker turned fugitive?

GM - GM - I do not think I outwitted the Police.The individuals at ENG Executive Security just did their work.On my part I had been praying and fasting for 5 weeks before I left Zimbabwe so I felt there was divine intervention.,you know the biblical moments when the Seas open to let you pass and then close once you are gone.I was never a fugitive.Fugitive refers to someone who is fleeing justice, I do not think at that time what was happeing to me was justice, I was fleeing persecution and there is a term for that.The High Court of Zimbabwe has proven my innocence so Century /CFX Bank must be returned to ENG just like Time Bank,Trust,Barbican and Royal Bank are being returned to their former owners why should it be any different on Century/CFX Bank?

Muponda refutes Interfin Bank Chairman Farai Rwodzi's settlement claim

Muponda refutes Interfin Bank Chairman Farai Rwodzi's settlement claim

To the Editor
Newsday

On August 25 2010 in the Newsday publication the Chairman of Interfin Farai Rwodzi blatantly misrepresented the facts of the ongoing dispute regarding the misappropriation of 309 million Century/CFX Bank shares by Interfin. Farai Rwodzi recklessly and deceitfully caused to be published the following falsehoods, “Interfin is currently preoccupied with the thorny and cumbersome issue of post-merger consolidation and the process is fraught with challenges related to culture divergence and contingent liabilities related to labour disputes and equity claims being made against CFX.The article entitled "Interfin acquires 13% of Starafrica" written by
MUNYARADZI MUGOWO clearly seeks to mislead the investing public,regulatory authorities and international organizations such as MoneyGram International and other Banks.

The article stated "The company last month paid Gilbert Muponda $5,3 million for equity allegedly transferred to the acquirer irregularly during the merger, but is still to reach common ground with former CFX employees, who have sued over wage arrears and severance packages.”.This is false.

It is clear Mr Farai Rwodzi and Interfin Bank Zimbabwe are misleading the investing public that Interfin Bank has settled a liability.They are trying misleading their International business partners such as MoneyGram International and DSTV who are obviously concerned by the on going CFX Bank/Interfin ownership dispute and reputational risk attached to the on going dispute. Reputable organization such as MoneyGram International have to ensure that they deal with only reputable organizations who settle their disputes in amicable ways.

Such prevarication through a respected publication like yours is designed to give credence to a fictitious transaction that never occurred. Neither my legal representatives nor I have received compensation of any nature from Interfin, its directors or shareholders for the 309 million Century/CFX Bank shares embezzled from Century/CFX by Interfin.

Farai Rwodzi’s fraudulent misrepresentation and gross distortion of facts fails to include material information which would significantly alter the interpretation of this matter fact. He arrogantly repudiates overtures for an amicable out of court settlement and yet admits in this Newsday interview of possession of my 309 million Century Bank shares.

I would like to offer Mr Farai Rwodzi and Interfin Bank Zimbabwe an opportunity to attest to this claim of payment by submitting for publication to your esteemed paper, a signed copy of the settlement agreement between ourselves together with a copy of the payment cheque.

Thank you for your prompt attention to this matter.

Interfin Bank HAVE NOT paid me US$ 5.3 million for my CFX Bank Equity

There is a false article appearing on Newsday Newspaper http://www.newsday.co.zw/article/2010-08-25-interfin-acquires-13-of-starafrica
claiming that Farai Rwodzi and Interfin have paid me US$ 5.3 million for my Equity which they illegally transfered CFX Bank into Interfin Banking Corporation.Interfin Bank Zimbabwe or Farai Rwodzi have not paid me or my lawyer or representative the $ 5.3 million which they owe me for those shares.I have been very fair and reasonable with Interfin and asked them to table a serious offer on how they intend to resolve the ownership dispute.

I still await the settlement of the US $5.3 to settle the CFX/Interfin Bank Zimbabwe ownership dispute.I am sure Interfin are under serious pressure from a well known International Financial Services Group to come clean on the circumstances of their illegal take over of my Bank,CFX.Interfin must act mature and pay the US$ 5.3 million after which I and my lawyers will sign a letter of release and indemnity to confirm settlement has been made.

I have instructed my lawyers in Harare and in Toronto to ask Newsday Newspaper to make amends and correct the false impression being created by their article.Newsday should also have verified this report before stating that Interfin "paid Gilbert Muponda $ 5.3 million".This is unacceptable as they are misleading the public.In the process tarnishing my good name and create unnecessary stress fro me and my family.

Interfin are fully aware I have tried to meet them half way to allow both parties to move on.I have made it clear to them that I do not wish to interfer with their business growth or strategy and would welcome any serious settlement offer.I only seek what is rightfully and legally mine.However I can not accept them putting out inaccurate statements.Thats not acceptable.

MoneyGram International strengthens Rwodzi ,Mujuru and Interfin Bank money laundering web

After a recent article exposing how Moneygram International was lending credibility to asset looting ,grabbing and subsequent money laundering by partnering my seized bank CFX which was renamed Interfin Banking Corporation, MoneyGram International pretended to be surprised. MoneyGram are fully aware they are doing business with people who are at the centre of looting assets and laundering the proceeds by partnering Internationally reputed brands such as money gram.

It is clear MoneyGram International guilty of very serious Corporate Irresponsibility by failing to do proper due diligence with the entities that they are using as agents in Zimbabwe in particular CFX/Interfin Bank Zimbabwe owned by General Mujuru and his business associate Farai Rwodzi. The details below and other generally available on the internet clearly show that MoneyGram International is complicity by association and are aiding and abetting in the asset looting going on in Zimbabwe.

MoneyGram International need to review their participation in the Farai Rwodzi-Mujuru-Interfin Bank Zimbabwe asset looting and grabbing syndicate. According to media reports part of the missing US$ 30 million diamond sales proceeds was “invested” at Interfin Bank Zimbabwe at a time when the Zimbabwe minister of Finance and Treasury Depratment are trying to trace those funds.

The media has been widely taunting Interfin Bank and Group as cash rich without telling the public that this very same cash was looted from diamond sales proceeds and is being used to “buy” CFX Bank? And for Moneygram International to be doing business with such entities who are ready to divert diamond sales proceeds whilst people are dying of hunger and lack of medication it only serves to confirm that MoneyGram International do not care about ordinary people who are the bulk of their clients who use their service.

Mujuru is also said to have shares in African Consolidated Resources (ACR), the company in the middle of a legal battle with the government over mining rights in Chiadzwa. ACR CEO Andrew Cranswick is described in the report as having aligned himself with the wrong faction in ZANU PF.

“Mujuru was to provide Cranswick political coverage, as the latter comes from a family with the wrong political pedigree. (His family was known to be big supporters of Ian Smith’s Rhodesian Front). Instead, Cranswick is now paying the price for backing the wrong horse in the ZANU succession race.”

Meanwhile, ACR offered the Zimbabwean government (whom exactly?) an equity partnership in this venture and still seems to await a response. According to Cranswick, `the board remains hopeful that good sense will prevail and the deposit can be exploited for the good of all Zimbabweans`River Ranch, which General Mujuru controversially grabbed at gunpoint in 2004, is another contested diamond area that the international rights group says is inextricably linked to the pursuit of political power and defiance of Kimberley Process protocols. PAC says: “The mine goes to the very heart of Mujuru’s struggle for control of ZANU”

A news report by respected journalist Violet Gonda quoted the “Titled: Diamonds and Clubs: The Militarized Control of Diamonds and Power in Zimbabwe, the report shows how the Chiadzwa diamonds are sustaining the ZANU PF regime and also fuelling the ongoing political conflict.”

According to Gonda’s article The report highlights individuals like former army general Solomon Mujuru, who is heavily involved in illegal diamond deals and also uses his diamond mine ‘River Ranch’ to launder the family’s ongoing plunder of resources from the Democratic Republic of Congo.

According to The Insider - May 2009 River Ranch piled up pressure to silence the publication for exposing the corrupt and illegal practices that were allegedly going at the mine. According to recent media reports the mine has now been “transferred” to Harare Lawyer Chinake through an “ acquisition of Kuphikile Resources’ shareholding – owned by retired army general Solomon Mujuru and Tirivanhu Mudariki.

River Ranch has intensified its efforts to silence The Insider over allegations that the company which runs a diamond mine near Beitbridge allegedly used vehicles registered in the name of the United Nations Development Programme to smuggle diamonds into South Africa. This is typical of the Farai Rwodzi-Mujuru-Interfin Bank Zimbabwe syndicate to use International Organizations to appear clean ,legal and legitimate whilst doing serious underhand deals such as the reported “investment” of at least US$ 2 million at Interfin Bank Zimbabwe to finance the acquisition of CFX Bank whilst Zimbabwe Treasury remains cash strapped and state enterprises are closed due to lack of funding. A report by The Zimbabwe Standard confirmed these irregular investments (http://www.theindependent.co.zw/local/27651-zmdc-executives-financial-scandal-deepens.html) The Voice of America did another follow up article
http://www1.voanews.com/zimbabwe/news/Suspended-Zimbabwe-Minerals-Executive-Said-Building-Harare-Mansion-100915419.html The Zimbabwe Telegraph did an additional article ( http://www.zimtelegraph.com/?p=8825). In this case MoneyGram International Brand is being used by Farai Rwodzi and Interfin Bank Zimbabwe to appear in “good company” whilst looting assets which can easily be laundered by associating with world leading brands like Money Gram International.

A report by Charles Rukuni highlighted the allegations of UNDP involvement in diamond smuggling from River Ranch were first levelled by Bubye Minerals, a company that also claims rights to the diamond mine which is now owned by Saudi Arabian billionaire Adel Aujan and former commander of the Zimbabwe army Solomon Mujuru or his front.
The UNDP was involved with River Ranch through African Management Services Company (AMSCO), a Johannesburg-based company that it jointly owns with the International Finance Corporation (IFC), the private sector arm of the World Bank.
AMSCO started assisting River Ranch in November 2004 by seconding five senior managers to the mine. It pulled out in July last year after the allegations surfaced in the local and international media.

Bubye claimed that officials seconded by AMSCO were using UNDP vehicles to smuggle diamonds to South Africa because the vehicles and the officers had diplomatic immunity and were not subject to search as they were accredited with the UNDP.
Mujuru, a politburo member of President Robert Mugabe’s Zimbabwe African National Union-Patriotic Front (ZANU-PF), is specified under the United States sanctions that are implemented by the Office of Foreign Assets Control (OFAC). His wife, vice-president Joyce Mujuru is also specified. The mine was discovered in 1971 by Kimberlitic Searches, a subsidiary of De Beers, but it forfeited its rights in 1991 following a wrangle with the Zimbabwe government over the marketing of the gems. The mine was taken over by Auridiam, an Australian company that entered into a joint venture with Canadian company Redaurum.

Zimbabwe`s president Mugabe expressed his disapproval of senior officials` involvement in the diamond industry. He described it as an industry where `suspicion could easily be raised`. Mugabe asked, `How do you become involved in this sort of thing when you are a Politburo member, partnering white businessmen, why?`
Retired general and war hero, Solomon Tapfumanei (directly translated: How did you get this rich?) Mujuru, alias Rex Nhongo, is the only ZANU PF Politburo member who is publicly known to have a direct interest in Zimbabwe`s diamond fields. As a Zanu PF member he serves on the board of the diamond field, River Ranch Limited.His interest in the diamonds has been through various schemes and elaborate structures including using various fronts.

The proceeds are then channeled through Interfin Bank Zimbabwe which Mujuru owns through his business associate and frontman Farai Rwodzi .In the recent case the ZMDC reportedly invested heavily in Interfin Bank under the rumoured instruction of the General,these diamond sales proceeds have allowed Farai Rwodzi and Interfin Bank syndicate to go on a buying spree including Zimbabwe Alloys,CFX Bank and possibly a stake in Kingdom Meikles Africa where Rwodzi is attempting to push out Kingdom Bank founder Nigel Chanakira with the ultimate plan being to incorporate Kingdom Bank into the Farai Rwodzi-Mujuru-Interfin Bank syndicate.

General Mujuru is allegedly also a close friend and business ally of Andrew Cranswick. His legal counsel at River Ranch Limited is George Smith. Smith is a retired judge who served under Ian Smith and Robert Mugabe as a cabinet secretary. It is interesting to observe that Mujuru`s role is never publicly questioned, as he remains a war hero. Meanwhile, he has amassed great wealth over the years using various fronts and schemes with Interfin Bank Zimbabwe acting as the custodians of the looted loot and specializing in cleaning the proceeds.

This article appears courtesy of GMRI CAPITAL – www.gmricapital.com . It is original content generated for 3MG MEDIA.

Gilbert Muponda is an Investment Banker and Founder of GMRI CAPITAL . He can be reached at; www.ZimFace.com and www.facebook.com/muponda

Email: gilbert@gilbertmuponda.com . Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

Court victory for former ENG directors

THE High Court has ordered the release of four vehicles seized from the now defunct ENG Capital after the company cleared all its liabilities. In a judgment delivered last month, Justice Lavender Makoni ordered police to return the four top-of-the-range vehicles a Mitsubishi RVR (registration number 792-035 G), a Mercedes Benz C320 (793-669 H), a Mercedes Benz C180 (778-980 R) and a BMW Z3 (740-372 B).

Makoni ruled that officer commanding Zimbabwe Republic Police (ZRP) Criminal Investigations Department and police commissioner general Augustine Chihuri who were cited as second and third respondent respectively would “bear the costs jointly and severally, the one paying the other to be absolved”. ENG went into liquidation in 2004 and all its assets were taken over to cover its liabilities.

The ruling by Justice Makoni comes after ENG co-founder Nyasha W atyoka had approached the courts for the release of the cars on the grounds that they had not been sold to clear the debts. Watyoka, in his founding affidavit filed last year, said the liquidator (Reggie Saruchera who was cited as the first respondent) had returned one of the companies, Allied Conveyors as its assets were no longer required to pay up creditors.

“The 1st respondent (Saruchera) on the other hand had never sought to dispose of or deal with the aforesaid motor vehicles before, during or after the liquidation process. “I presume again the realisation was that it was not necessary,” Watyoka said in the affidavit.

ENG shocked the markets when it faced problems in 2004 with monetary authorities accusing directors of operating a pyramid scheme especially for its asset management arm. Formed in 2001 by Watyoka, Gilbert Muponda and Elton Chitondo, ENG had interests in various listed and unlisted companies.

Contacted to comment on the ruling Muponda said he is not bitter but felt exonerated by the ruling which should now pave way for his despecification by the authorities. “I look forward to the resumption of our business and I am naturally pleased to see that all claims have been settled with excess assets to spare. “This gives us a chance to re-launch the brand and take off from where we left off,” he said.

Muponda has in the past six years launched an intensive cyberspace war to reclaim his assets which he said had been seized by authorities. Muponda is also claiming that 309 million Century shares were illegally sold in 2004. Century was later merged with CFX. CFX was recently taken over by the cash-rich Interfin Holdings Limited. Its assets and liabilities were taken over by Interfin Banking Corporation.
BY OUR STAFF
http://www.thestandard.co.zw/business/26067-court-victory-for-former-eng-directors.html

Farai Rwodzi & Interfin Bank’s risk taking unwise

Farai Rwodzi & Interfin Bank’s risk taking unwise
On 6 July 2010 according to news reports “We saw potential where everyone else saw risk,” Farai Rwodzi, Interfin Bank Zimbabwe chairman, said just before trades opened to celebrate Interfin’s attempted to hide its tracks of taking over a disputed asset ( Century /CFX Bank ) and sanitize an illegal transaction. “Today the deal is done. We have a solid balance sheet; Interfin will never be the same again.” Farai Rwodzi continued.

It is clear at this stage that Farai Rwodzi and Interfin Bank Zimbabwe felt their stunt of taking over a disputed Century/CFX Bank and proceed to rename and rebrand it as Interfin Banking Corporation (IBC) would work wonders and everyone would forget that they are trading in stolen assets and trying to conceal the true nature of the transaction they were executing.

Rwodzi and CFX/Interfin Bank clearly know that CFX Bank was grabbed from me and ENG Capital and because of that it is a disputed asset which brings with it significant reputational risk. The whole Zimbabwe Financial market knows this that’s why all other major participants avoided investing in CFX Bank before the ownership dispute was resolved .It remains to be seen whether Farai Rwodzi and Interfin Banks’ gamble will pay off. The wisdom of taking over a disputed bank and hoping to rebrand it remains suspect.

The ownership dispute was triggered by the special bargain sale of 309,000,000 shares on 12 May 2004 but the total shares claimed by me and my Company is 900,000,000 the balance was transferred in peace meal fashion to avoid detection of the fraud and transaction laundering that was being perpetrated. CFX was nothing more than a forex trading shop which was used to swallow Century Bank as a cover up of the illegal and fraudulent seizure of the Century Bank. I lost Century Bank shares owned through ENG Capital after they were “fraudulently” converted into CFX Bank which took over Century Bank assets and Branch network.

The 309 million Century Bank Shares I owned through my Company ENG Capital were fraudulently transferred and converted at the time of the merger between CFX Bank and Century in 2004 and Interfin Bank proceeded to take over CFX ignoring the disputed ownership of CFX Bank and the attendant reputational risk. I even wrote to Credit Suisse to dissuade them from taking up shareholding in CFX FS. Credit Suisse has 40% shareholding in FBZ.


CFX/Interfin Holdings reverse listed on the Zimbabwe Stock Exchange (ZSE) using the infrastructure and legal structure taken over from the disputed Century/CFX Bank . CFX had floated the equity offering to raise the minimum capital requirements set by the Reserve Bank of Zimbabwe following the collapse of its equity-financing negotiations with the Finance Bank of Zambia.These talks collapsed once Finance Bank of Zambia discovered the raging ownership dispute which Interfin Bank is seeking to conceal and hide by rebranding Century/CFX Bank as CFX/Interfin Banking Corporation (IBC)

This article appears courtesy of GMRI CAPITAL – www.gmricapital.com . It is original content generated for 3MG MEDIA.

Gilbert Muponda is an Investment Banker and Founder of GMRI CAPITAL . He can be reached at; www.ZimFace.com and www.facebook.com/muponda

Email: gilbert@gilbertmuponda.com . Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

Ex-CFX workers challenge merger

Ex-CFX workers challenge merger

By Martin Kadzere

FORMER CFX Bank workers have taken steps to reverse the merger of the financial institution with Interfin Banking Corporation.

The retrenched workers wrote to the Registrar of Banking Institutions through their lawyer objecting the amalgamation which they said was done before outstanding staffing issues were resolved.

Interfin gained a controlling stake in CFX late last year after underwriting its US$10 million rights offer, which drew a 1,98 percent response from the existing shareholders.

This resulted in the reverse takeover of CFX by Interfin and the latter was subsequently listed on the Zimbabwe Stock Exchange in April.

However, nearly five months after amalgamation, 61 former CFX employees want the merger undone until some outstanding legal issues are finalised.

The former workers also want clarity on why the transaction was deemed a merger when in fact it was a take over of CFX under which the merged institution had an obligation to assume CFX assets, liabilities and staff.

"Our clients are extremely concerned about the fact that the Memorandum of Agreement by Interfin and CFX Bank Limited is dead silent on the fate of CFX Bank Limited employees who had been targeted for retrenchment," reads part of documents lodged with the Registrar of Banks by the workers’ lawyers Matsikidze and Mucheche Legal Practitioners.

"To the extent that the MoU between Interfin and CFX is mute on the status of CFX employees earmarked for retrenchment, the agreement which gave rise to the merger is a legal nullity.

"Our clients are of the firm and immutable view, and rightly so in our view, that the merger is no more than a gimmick to eliminate all CFX Bank employees earmarked for retrenchment via the back door without compliance with the mandatory provisions of the Labour Act.

"The merger of the two banking institutions inflicts grave violence to the provisions of the Labour Act which enshrines the rights of employees on transfer of undertaking in that the MoU is silent on the rights of the employees particularly (those) who had already been served with notices of intention to retrench.

"It is our considered view that the merger of the two banking institutions is in fraudulem legis in that it fails to guarantee the rights of the employees on transfer of undertaking as embodied in the Labour Act," read the document.

Interfin managing director Mr Raymond Njanike, however, said the move by the former workers was a "misguided approach" as there was no basis for putting the merger on hold.

"These are shareholders issues and how then does a worker block the merger and what are the merits?" asked Mr Njanike.

"The purpose was to save these two institutions from collapse and we had blessing from all regulatory authorities. It is a circle and if things improve, we will recall them."

CFX approached Interfin after the Finance Bank of Zambia aborted plans to inject fresh capital into the financial institution on fears of litigation threatened by former ENG director Gilbert Muponda, whose subsidiary Century Bank merged with CFX in 2004

MoneyGram International co-opted into Farai Rwodzi/Interfin Bank Zimbabwe money laundering scheme

As the asset grabbing, looting and money laundering by Farai Rwodzi and Interfin bank Zimbabwe continues it is important to note the partners who stand by and aid and abet such illegal actions. Moneygram International are one such International organization who are now quickly becoming a willing party in assisting Farai Rwodzi and CFX/Interfin Bank Zimbabwe to launder their proceeds of crime and appear respectable by associating with the MoneyGram International brand despite severe reputation risk which comes with such association.

Money gram International are currently using Banks which they know were grabbed from their owners in Zimbabwe .Moneygram is looking the other way whilst legitimizing asset grabbing and looting thereby facilitating money and asset laundering. Currently Money gram International is using as agents Zimbabwe Amalgamated Banking Group ( ZABG) which is made up of Trust,Royal and Barbican Banks seized from rightful owners.Now they are doing business with CFX/Interfin Bank Zimbabwe who grabbed the Money gram International Franchise held by my Bank CFX Bank.

Finance Bank of Zambia and its Credit Swiss wanted to buy CFX but pulled out due to high reputational risk. Finance Bank of Zambia and its Swiss Financiers pulled out of the transaction because of the unresolved ownership dispute. How can Interfin ignore this?

In money laundering, the proceeds of crime are run through the financial system to disguise their illegal origins and make them appear to be legitimate funds. In this case CFX/Interfin Bank Zimbabwe took over a disputed asset as in buying stolen property and are trying to clean up the transaction and remove any trace from the initial fraud that was committed against me.The involvement of Money gram International provides cover for CFX/Interfin Bank Zimbabwe and Farai Rwodzi to appear legitimate and clean due to Moneygram’s ,International standing.

The ownership dispute was triggered by the special bargain sale of 309,000,000 shares on 12 May 2004 but the total shares claimed by me and my Company is 900,000,000 the balance was transferred in peace meal fashion to avoid detection of the fraud and transaction laundering that was being perpetrated. CFX was nothing more than a forex trading shop which was used to swallow Century Bank as a cover up of the illegal seizure of the Bank. I lost Century Bank shares owned through ENG Capital after they were “fraudulently” converted into CFX Bank which took over Century Bank assets and Branch network.

The 309 Century Financial Holdings Limited Million shares in question were sold through Fidelity Stock brokers on or around May 13, 2004. Within the same week an announcement was then made that CFX Bank was taking over Century Holdings. The shares were sold to a Senior Politician’s reported consortium for Z$2,9 billion when ENG had spent $35 billion to accumulate the shares, thereby prejudicing ENG, Creditors, Investors and contributories of at least Z$32,1 billion.

As ENG Co-founder, Contributory and Shareholder, I wrote to the Zimbabwe Stock Exchange Chief Executive Mr Emmanuel Munyukwi asking for an investigation because we had agreed with the majority of creditors that the shares should not be sold but rather swapped with creditors and investors instead of selling them at an unreasonable price. But the 309 million Century /CFX Financial Holdings million shares were somehow clandestinely sold and that transaction enabled CFX Bank to take over Century Holdings Limited.

This allowed the reverse listing of CFX Bank on to the Zimbabwe Stock Exchange. Without those 309 million Century Holdings Limited million shares owned by ENG the CFX/Century merger would have never happened. Senior politicians and their proxies became the new controlling shareholder of the new merged bank. Is this by design or accident? Senior politicians then forced out Mr. Sean Maloney who had helped to put together the transaction. Mr. Sean Maloney had to leave the country under unclear circumstances . Part of the same shares snatched From ENG were later transferred to Premier Bank Financial Holdings which is reportedly owned by a Senior Politician. There has generally been shuffling of shares which is normally associated with covering tracks of an illegal and irregular transaction.

ENG directors and contributories asked the high court to set aside the sale of the shares and the matter action is still before the courts in Harare. We asked Zimbabwe Stock Exchange Committee to investigate. They refused. We asked the brokers for the identity of the buyer of our shares. They refused. The brokers indicated they were under serious pressure from individuals they couldn’t identify to maintain total secrecy on the identity of the buyer. Within a few days of raising the challenge of the CFX/Century shares Justice Minister specified me without affording me a hearing or an enquiry as required by the Constitution of Zimbabwe . There was specification at the instigation of senior politicians who were eyeing assets held by ENG including Century/CFX Bank. The specification was meant to harass, cow, intimidate and silence me from raising further complaints and challenges regarding ENG assets specifically these 309 million shares in Century/CFX Financial Holdings.

Since the ENG shares in Century /CFX Bank Financial Holdings were irregularly transferred the Bank ownership remains in dispute. The ENG shareholders and contributories filed and sought a high court order to stop the transfer of the shares until the dispute had been resolved . The shares were still clandestinely transferred despite the pending high court application to resolve the dispute . After filing for this order My Lawyer the late Oscar Ziweni was also specified by the Minister of Justice and threatened ,harassed and intimidated until he went into hiding. However the point remains ENG Founders, Shareholders and Contributories still lay claim to these shares and stake in Century/ CFX BANK which were looted by Senior Government officials.

The 309 million Century Bank Shares I owned through my Company ENG Capital were fraudulently transferred and converted at the time of the merger between CFX Bank and Century in 2004 and Interfin Bank proceeded to take over CFX ignoring the disputed ownership of FCFX Bank and the attendant reputational risk. I even wrote to Credit Suisse to dissuade them from taking up shareholding in CFX FS. Credit Suisse has 40% shareholding in FBZ.



International firms such as Money Gram International should do proper due diligence of their International partners or they will end up regretting for aiding and abetting money laundering and asset looting and grabbing. There are entities and individuals in Zimbabwe who erroneously believe they are above the law. They have the mistaken belief they can grab, loot, steal assets and get away with it. In the process they try to launder their loot through various disposals and restructurings such as the ones that were done at Century/CFX Bank. This is being fully documented. CFX Bank has had more than 5 Managing Directors in a space of 2 years .This shows the instability brought about by being a disputed asset whilst the looters try to pull “ strings” from behind the scenes.

Interfin Holdings reverse listed on the Zimbabwe Stock Exchange (ZSE) using the infrastructure and legal structure taken over from my bank.Money gram International should know better and trade carefully because giving asset looters and grabbers legitimacy may have negative impact on their reputation.
Whilst Farai Rwodzi and Interfin bank Zimbabwe may get away with the listing on the ZSE for now in the long run they will have huge reputational risk emanating from the CFX Bank ownership dispute which they are trying to sweep under the carpet and rename and rebrand the problem.

This article appears courtesy of GMRI CAPITAL – www.gmricapital.com . It is original content generated for 3MG MEDIA.

Gilbert Muponda is an Investment Banker and Founder of GMRI CAPITAL . He can be reached at; www.ZimFace.com and www.facebook.com/muponda

Email: gilbert@gilbertmuponda.com . Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

Phone: 1-647-994-5542

ENG saga finally over as all claims are settled

ENG Capital a financial institution registered in Zimbabwe was dramatically closed down in 2003-4 following spurious allegations of being under capitalised, has now fully paid out all claims according High Court records obtained by The Zimbabwe Mail. This comes as a surprise given how there were widespread allegations that ENG Capital was bankrupt. The records clearly illustrate that all payments to all the claims against ENG were met leaving excess assets that have been returned to ENG’s directors. This turn of event begs us to question the real motive behind the vilification and subsequent specification of ENG directors.

ENG Capital has proven that its assets far exceeded its liabilities and was liquid, solvent and solid and met all its creditors and liability obligations. The record laid at the High Court in HARARE in October 2009 and passed without any objections or counterclaims from any creditors. The relevant Government Gazette was published in October 2009 to confirm this.

The ruling on 15 July 2010 under case number HC 6086/09 states that -"ENG companies and Directors satisfactorily liquidated all debts past, present and future accumulated by the company"

The Master of the High Court together with the Liquidator confirmed to the court that all excess assets were return to ENG and its directors. Several of ENG Companies including Allied Conveyors PVT LTD was returned to ENG Capital shareholders and contributories. Amongst other assets returned are vehicles, kept gathering dust for 6 years at Chikurubi:

1- BMW – Z3
2- Mercedes Benz – C320
3- Mercedes Benz – C180
4- Mitsubishi RVR –SUV

Exiled former ENG Director Gilbert Muponda “I am not bitter but feel exonerated by the ruling which should now pave way for my despecification by the Zimbabwean Authorities and allow my family and I to resume a normal life. I look forward to the resumption of our business and I am naturally pleased to see that all claims have been settled with excess assets to spare. This gives us a chance to re-launch the brand and take off from where we left off"

I feel Vindicated and undefeated - ENG pays off all claims and excess assets Returned

Its rare that you feel vindicated in life. Well for me its one of those rare moments relating to the ENG Capital matter. ENG Capital has proven it was liquid, solvent and solid by fully paying off all claims, creditors and liabilities. The record laid at the high court in HARARE in October 2009 and passed without any objections and no-one claimed any outstanding balance. The relevant Government Gazzette was published to confirm this. HC 6086/09 -"ENG companies and Directors satisfactorily liquidated all debts past, present and future accumulated by the company"

After that conformation all excess assets were return to ENG Contributories. Several of our Companies including Allied Conveyors PVT LTD was returned to us. I am still struggling to get Police return my daughter’s Kindergatten graduation pictures and my Graduation pictures which they seized. In addition 4 cars are being returned

1- BMW – Z3
2- Mercedes Benz – C320
3- Mercedes Benz – C180
4- Mitsubishi RVR –SUV

I am naturally pleased to see that all claims have been settled with excess assets to spare this proves all allegations were malicious and meant to defame me. This proves what we have always said that ENG Capital and my self were persecuted out of greed and malice.

I would like to thank God who made this day possible. In addition I would like to thank those who stood by me all the way and believed in my explanation. Team ENG I miss you guys ,you were too strong keep your heads up!!Young CM thanks for being by my side until the very last moment, you are loyal and too kind. Thanks.

Rwodzi, Mujuru-Interfin Bank axis of looting, and money laundering

Interfin Bank Chairman Farai Rwodzi and his business associates Vice President Mujuru and her husband Retired General Solomon Mujuru have various interests in just about every sector of the Zimbabwe economy. In June 2005 a consortium representing the Mujurus headed by Farai Rwodzi and Adam Molai, respectively founder of the Interfin Merchant Bank and managing director of Savanna Tobacco Company took over Zimbabwe Alloys from Anglo American. It was the first mining investment fronted by Rwodzi which glossed over the mafia tactics used by Farai Rwodzi and Benscore Investments team to arm twist the Zim alloys workers who had been promised the Company by Anglo American.

The Mujuru family using various schemes ,tactics and individuals co-ordinated and fronted by Farai Rwodzi has been on an asset buying spree to launder and clean up their ill-gotten wealth. River Ranch is known colloquially as “Mujuru’s mine”. There But while Mujuru’s ownership may be common knowledge, many other things about River Ranch remain in the shadows. The mine goes to the very heart of Mujuru’s struggle for control of Zanu (PF) and allegations it is being used to launder some of the plunder he and his allies secured in DRC.

In April 2004 Mujuru controversially grabbed the mine with the help of Adel Abdul Rahman al Aujan, a millionaire Saudi real estate developer who also owns luxury beach resorts and safari camps in eastern and Southern Africa that operate under the name Rani Resorts. There are also persistent questions surrounding the company’s ‘official’ production numbers. Although there is no definitive proof Mujuru is laundering Congolese diamonds, RRL’s numbers don’t tally.These tactics are well planned by the Mujurus to take mines and then launder proceeds from other controversial mines like DRC and Chiadzwa

The Zim alloys workers were not happy about the new take over they had been promised a workers buy out. But those vultures got information from Tongai Muzenda that Zimbabwe alloys was up for grabs and had been promised to the wormers and management through a Management Buyout.The management and workers were cowed using various mafia intimidatory tactics of arrests, physical violence and false imprisonment.Farai Rwodzi, Interfin Bank and the Mujurus have refined the art of illegal asset takeovers and laundering the proceeds through Interfin Bank.This is the same tactic Mujuru used to take over River Ranch Mine and now his protégé and business front and partner Farai Rwodzi is reefing the art with additional help from Interfin Bank to make it look professional and above board.

In 2001 Mujuru became the subject of the first legal action against any member of Mr Mugabe's inner circle implicated in the illegal seizure of land and assets. His seizure of Alamein Farm was ruled illegal by the Zimbabwean Supreme Court.

Popular speculation is that he owns anywhere between six and sixteen farms, including Alamein farm, a productive and high-value operation illegally requisitioned as part of a "landgrab" from Guy Watson-Smith in 2001, as found by the Zimbabwe High Court and international courts.

Farai Rwodzi also got 5 workers arrested at Zimbabwe alloys in Gweru on false and fabricated charges in an attempt to silence them from opposing his bid for Zimabwe Alloys. Other employees were beaten up by ZANU PF youths hired by Farai Rwodzi when they resisted his take over of Zimbabwe alloys.

Workers committee members then organised fellow workers to resist farai Rwodzi and Interfin’s team. Farai Rwodzi personally went to Zimbabwe alloys with Tongai Muzenda and the next the 4 workers were arrested for various fabricated allegations. Others “vaingo robhwa vachiudzwa kuti muri Ve MDC munorambidza mwana wevhu kutenga company sei”

Vice President Mujuru’s back ground is very relevant to the current looting spree spearheaded by Farai Rwodzi on her behalf.Before becoming vice-president, she was best known for blocking a bid to set up Zimbabwe's first mobile phone network in the early 1990s.This was seen as not only a money-earner but a threat to the government's control of information. As information minister, she managed to thwart Econet long enough for Telecel, rumoured to be part-owned by her husband, to set up.

She was also one of the biggest beneficiaries of a scheme set up to pay compensation to those injured during the war of independence. The scheme paid out huge amounts of public money - one of the sparks for Zimbabwe's subsequent economic collapse.

The Mujurus are accused of taking over at least one of the farms seized from their white owners in recent years. Guy Watson-Smith has taken Mr Mujuru to court to seek compensation after his farm was invaded by ruling party supporters. He says the famous couple are living on the 3,500-acre Alamein farm, 45 miles south of Harare. Mr Watson-Smith says the infrastructure alone was worth some $2.5m.He won a court order in December 2001 but is still trying to get either the money or the farm. The proceeds from such asset grabs are routinely sent to Interfin Bank for laundering purposes to hide any tracks of the preceeding illegal activities

Mr Mujuru is also a director of the River Ranch mine as described above, which has denied reports of it was trading in illegal "blood diamonds" from DR Congo. River Ranch affords Mujuru unfettered access to his own diamond resource – one that he has protected with ruthlessness.

Those who have borne the brunt of Mujuru’s persecution are the Farquhar’s and their immediate supporters. The couple has repeatedly been singled out for special harassment, including frequent imprisonments, house break-ins and death threats, in an attempt to force them to give up the mine.

The intimidation campaign took a very personal and tragic turn in February 2010, when Adele’s brother, Richard Amyot, and his wife, Tecla, were murdered.

Police ruled it a murder-suicide but forensics done by the family disputed that finding. Tecla was shot four times, including once from close range at the back of her head while she was lying on the floor. Richard was found slumped in a door frame as though running from the room. He, too, was shot in the head, but from medium range. No gunpowder residue was found either on his hands or at the bullet’s entry point.

Mrs Mujuru and her Husband have also been accused of trying to evade international sanctions by using her daughter to sell Congolese gold on her behalf. After their daughter was exposed Farai Rwodzi has taken the lead in trying to evade sanctions on behalf of the Mujurus and hide their ill-gotten gains.

It is clear there is blood dripping money in this Rwodzi/Mujuru/Interfin Bank network which must be exposed at all costs. Interfin does not have any real and meaningful clients or bank business model. Its sole purpose is to launder proceeds of crime as in asset grabs, looted diamonds, corruption this is why Rwodzi was very quick to pay US$ 5.3 million for CFX Bank because it was a real bank with proper network systems and relationship with Money gram which Farai Rwodzi intends to use extensively in his money laundering operations. Moneygram should be aware of the reputational risk that will come with Interfin Bank’s involvement with their brand.