Goat tender fraud trial resumes

Published: 6 hours ago

The trial of businessmen Moses Mpofu and Mike Chimombe, accused of defrauding the Government of US$7 million under the Presidential Goat Pass-On Scheme, resumed yesterday with Mpofu outlining the financial and operational setbacks that crippled their company's ability to deliver on the multi-million-dollar contract.

Mpofu, testifying in court, said their company, Blackdeck Pvt Ltd - also trading as Colenso Farm or Blackdeck Livestock and Poultry Farming - had been contracted to supply over 600,000 goats to the State under the scheme.

He explained that the Ministry of Agriculture, Lands, Water, Fisheries, and Rural Development advanced ZWL$901 million to the company, backed by a MetBank guarantee worth US$26 million, representing 30% of the total contract value.

However, Mpofu said the arrangement collapsed when MetBank cancelled the guarantee, accusing the Ministry of breaching the terms of the agreement.

Reading from a letter sent to the Ministry, Mpofu said MetBank declared the guarantee "null and void" and demanded its return, stressing it would remain invalid even if it was not physically handed back.

Efforts to salvage the arrangement with MetBank failed, forcing Blackdeck to seek new financial backing. Mpofu said First Capital Bank eventually issued a replacement guarantee after conducting due diligence, but by then, significant damage had been done.

"The collapse of the MetBank guarantee meant we could not access the ZWL$901 million previously deposited, as it had been eroded by bank charges and a 5% penalty," Mpofu told the court.

He said the Ministry later indicated that it had secured fresh funds and was willing to pay the outstanding balance, but this was blocked due to the cancelled guarantee.

According to Mpofu, Blackdeck informed the Ministry of its new arrangement with First Capital Bank, but the State only deposited ZWL$598 million into the company's account - far below the amount required to launch the project.

"The amount was insufficient to kick-start the project. We acknowledged receipt of the funds but told the Ministry it was inadequate for the agreed scope," Mpofu testified.

Despite the funding shortfall, Mpofu said Blackdeck remained committed to the scheme, transferring portions of the funds to three contracted agents - Cedar Farming, Nomilster Enterprise, and Milytek Enterprise - to begin operations.

But before substantial progress could be made, the Reserve Bank of Zimbabwe's Financial Intelligence Unit froze the accounts of Blackdeck and its agents over suspicions of sourcing foreign currency on the black market.

Mpofu revealed that Cedar Farming, which had received ZWL$160 million, delivered only 750 goats before the freeze.

The State alleges that Mpofu and Chimombe fraudulently obtained the tender to supply 632,001 goats by submitting forged ZIMRA tax clearance and NSSA compliance certificates.

The trial continues today.
- The Herald

Tags: Fraud,