Ndamu Sandu
4 July 2009
TAP Zambia, a subsidiary of Africa Resources Limited, has written to Finance Minister Tendai Biti seeking assistance to recover US$700 000 extracted from the company when it was under the stewardship of SMM administrator, Arafas Gwaradzimba.
The letter seen by this paper last week, claimed that Gwaradzimba obtained US$698 688.75 from TAP between 2006 and August last year, which adversely affected the operations of the Zambia firm.
"We humbly seek your assistance and advice in the recovery of the above funds, given that Mr. A M Gwaradzimba was acting as an agent of Zimbabwe government," reads part of the letter signed by TAP chairman, Robinson Zulu.
Gwaradzimba assumed control of TAP in 2006 after the Zambian High Court had ruled that by virtue of the expropriation decrees promulgated by President Robert Mugabe in September 2004 targeting SMM holdings, TAP was deemed to under the administrator's control.
Gwaradzimba had been appointed SMM Holdings administrator pursuant to the operation of the controversial legislation that permitted the government to take over the control and management of Mutumwa Mawere's companies without the involvement of the judiciary.
But the Supreme Court ruled in August that reconstruction laws cannot be applied across the Zambezi as Zambia was a sovereign state with its own laws.
This left Gwaradzimba with a mountain to climb on how the funds could be returned.
The amount exhausted under Gwaradzimba's administration covered administration, legal, statutory and audit fees, air tickets and accommodation expenses for board members.
Gwaradzimba's firm, AMG Global raked in US$345 830 in administration fees and Mulenga Mundashi & Co received US$127 346.10 in legal fees.
Board fees paid to members, that included four Zimbabweans on the six-member board namely Oliver Mtasa, Edwin Manikai, Peter Moyo and Chirandu Dhlembeu totalled US$111 679.11.
The other expenses incurred by TAP were for the Zimbabwean delegation to attend meetings.
The Zambian firm covered the accommodation and flight expenses for the Zimbabwean quartet which totalled US$25 639.27.
The claim by TAP, if not handled properly, will spark a diplomatic row between Zimbabwe and Zambia and the Reserve Bank had advised President Robert Mugabe on the matter, sources said.
Sources said RBZ was not aware of the Zambian transactions and will investigate whether the receipt of the funds were declared by the administrator for exchange control purposes, a development that might put Gwaradzimba on the spot.
Since Gwaradzimba is an agent of the government, sources say TAP cannot recover the money as the administrator is protected by the Reconstruction Act.
Curiously, Gwaradzimba omitted the Zambian debacle in his May 19 letter to Justice Minister Patrick Chinamasa updating him on SMM operations.
On Thursday he said he had not received the letter and a day later said he could not comment because he was attending a meeting.
Gwaradzimba said it would be improper for him to comment saying there "are many things being discussed by various parties".
He said: "The relevant authorities will make the announcements and pronouncements as and when they are due."
Deputy Prime Minister Arthur Mutambara on Wednesday said the new dispensation should repeal and remove from statutes vindictive laws targeted at individuals.
"We don't want any laws that are a creation of vindictiveness," he said.
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