By A Correspondent | ZimEye | Harare, Zimbabwe – Prominent lawyer, academic, and CCC factionist, Professor Welshman Ncube, has been thrust into the spotlight amid allegations of serious financial misconduct.
The accusations involve several illegal actions connected to the Mphoko family’s business transactions, putting Ncube at the center of a significant legal controversy.
Illegal Actions Involving the Mphokos’ Lawyer, Prof. Welshman Ncube
Issuing or Transferring Shares Without Exchange Control Authority
Professor Welshman Ncube, taking advantage of his solicitor powers and the powers of attorney granted him by former Vice President Mr. Phelekezela Mphoko and his son Mr. Siqokoqela Mphoko, is accused of facilitating the issuance of shares to a foreign resident or nominee without obtaining the necessary Exchange Control authority. This action violates Section 12 of Statutory Instrument 109 of 1996, which mandates prior approval for such transactions.
Absence of Exchange Control Authority for Share Disposal
Further allegations indicate that Prof. Ncube did not secure the required Exchange Control authority when Mr. Phelekezela Mphoko and Mr. Siqokoqela Mphoko sold their 51% shareholding in Nanavac Investments to Choppies Investments, a company based in Botswana. This oversight constitutes a breach of Zimbabwe’s stringent financial regulations.
Acquisition of Shares by Foreign Entity Using Local Currency Without Approval
Prof. Ncube is also implicated in overseeing the purchase of shares by Choppies Investments using local currency funds without obtaining prior approval from Exchange Control. This unauthorized use of local funds for share acquisition raises serious concerns about the legality and transparency of these transactions.
Payment for Shares from Non-approved Channels
The accusations extend to the payment for shares using funds that were not transmitted through normal banking channels, again without the necessary Exchange Control approval. This method of payment under Prof. Ncube’s guidance adds to the list of alleged financial infractions.
Issuance or Transfer of Shares Without Reserve Bank Permission
The Reserve Bank of Zimbabwe has highlighted that Prof. Ncube facilitated the issuance or transfer of shares without securing the required permission from the bank. This breach of regulatory frameworks is seen as a significant violation of Zimbabwe’s financial laws.
Purchase of Foreign Currency on the Parallel Market
One of the most severe allegations against Prof. Ncube involves the purchase of foreign currency on the parallel market, a practice prohibited under Section 5 (1) (a) (ii) of the Exchange Control Act Chapter 22:05. This illegal activity undermines the formal financial system and contributes to economic instability.
Official Statement from the Reserve Bank of Zimbabwe
In response to these serious allegations, the Reserve Bank of Zimbabwe has issued a formal communication to the C.I.D Bulawayl Anti-Corruption Unit. The letter, signed by Director F. Masendu, details the multiple breaches of financial regulations and underscores the necessity for proper Exchange Control approval in all such transactions.
The bank’s statement provides a comprehensive outline of the general guidelines for transactions involving foreign entities, emphasizing the mandatory requirements for Exchange Control approval and the use of proper banking channels. The communication also reiterates the illegality of purchasing foreign currency on the parallel market.
Impact and Next Steps
These revelations have sent shockwaves through Zimbabwe’s legal and business communities. The allegations against Prof. Ncube not only damage his reputation but also raise significant questions about the integrity of the financial operations involving Choppies Enterprises.
Authorities are expected to launch a thorough investigation into these allegations. Legal experts predict substantial ramifications for all parties involved as the case progresses.
For now, Prof. Welshman Ncube and Choppies Enterprises remain under intense scrutiny, with the potential for significant legal and financial consequences looming large.
Meanwhile, the following questions remain:
- Who authorized Choppies Enterprises to operate in Zimbabwe without the necessary permissions?
- How are they addressing the allegations of violating Zimbabwean laws?
- What measures are in place to prevent money laundering within their operations?
- How are they managing to operate 100% as a foreign entity in a sector reserved for local businesses without prior clearance?
- What actions will be taken to ensure compliance with Zimbabwe’s regulations moving forward?
Stay tuned for further updates on this developing story.