The Herald (Harare)

28 February 2013

Zimbabwe: Former Hwange Colliery Managing Director Arrested for Fraud

Former Hwange Colliery Company managing director Fred Moyo allegedly swindled a local gold mining firm of US$2, 7 million in a business deal.

Moyo's firm, Gold Recovery Pvt Limited allegedly entered into an agreement with shareholders of Ox-mining Pvt Ltd to take over the mine after making part payment of the agreed figure.

Moyo (56) and his alleged accomplice Paul Diamond, who is still at large, allegedly misrepresented to ZB Bank officials that they had been authorised by Ox-mining to apply for a US$2 million loan which was approved.

They also reportedly secured a US$700 000 loan from Stanbic Bank after misrepresenting themselves as Ox-mining directors.

Moyo yesterday appeared before Harare magistrate Mr Donald Ndirowei facing fraud charges.

He was remanded to March 13 on US$1 000 bail coupled with stringent conditions.

As part of the bail conditions, Moyo was ordered to surrender his passport and to report once a week at CID serious frauds.

He is also required to continue residing at his given address and not to interfere with witnesses until the matter is finalised.

Prosecutor Mr Tungamirai Chakurira alleges that Gold Recovery Group paid US$850 000 before the signing of the agreement to secure the option.

Moyo's company allegedly promised to pay an outstanding balance of US$1 693 905 before the expiry of June 20 2011 deadline in terms of the agreement but failed.

It is the State's case that on July 1, Gold Recovery Group failed to close the sale.

While Sidney Aubrey Steyn, Gary Denavana O'Neil and Robert Geldenhuys were still the directors of Ox-mining, it is alleged Moyo and Diamond misrepresented to ZB bank that they had been authorised by Ox-mining to apply for US$2 000 000 on their behalf.

The application was approved and they received the money without the knowledge of Ox-mining directors.

In November the same year, Moyo paid part of the outstanding balance of purchase to Ox-mining and was left with US$348 000 balance.

Moyo allegedly used the share sale and purchase agreement which had not been fulfilled to effect the change of directorship from the complainants into Diamond and Moyo's names.

On August 30 last year Moyo and Diamond are alleged to have gone to Stanbic Bank and purported to be directors of Ox-mining and borrowed US$700 000 using the same assets which they used to secure a loan from ZB Bank.

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