By A Correspondent| A fresh financial scandal involving an illegal payment of almost US$100 million owed for gold supplies to the state-owned Fidelity Printers and Refiners by an obscure entity linked to a top Zanu PF gold baron has exploded in the government Treasury, exposing a venal transaction reeking of fraud and corruption.
The latest revelations are contained in confidential official documents circulating online, further showing how government, through the Finance Ministry permanent secretary George Guvamatanga – Treasury’s chief accounting officer – is badly mismanaging public funds, creating a chaotic monetary mess and exacerbating the mass suffering of the already impoverished people amid a chronic economic crisis.
The deal arose after the government and Reserve Bank of Zimbabwe (RBZ) contracted an obscure company, Gaingrid Investments (Private) Limited, to buy and sell gold to help boost the county’s bullion reserves.
War veterans leader Blessed Geza says Gaingrid is linked to prominent Zanu PF MP and gold dealer Pedzisayi “Scott” Sakupwanya, who is closely connected to Mr Emmerson Mnangagwa.
Company searches did not yield positive results on who actually its directors are, but evidence of payment is well-documented and undeniable.
Through this scheme, Gaingrid, which has no credible public profile and record, was given a massive deal to buy and sell gold from small, medium to large-scale miners across the country.
Gaingrid was entitied to a 5% incentive from the Ministry of Finance, Economic
Development and Investment Promotion (MOFEDIP) for gold delivered to Fidelity Printers and Refineries.
As a result, Guvamatanga claims government owed the briefcase company US$60 million which needed to be urgently paid without fail.
However, a messy repayment arrangement agreed in September last year says government would pay the entity at least US$8 million monthly instalments for 12 months, meaning Gaingrid would get US$96 million, just about US$100 million, which is way above what is purportedly owed in the first place.
This suggests that financial room of about US$40 million – US$36 million to be specific – was created for unexplained reasons, presumably as a transaction cost, commission or simply “money for the boys”, which bluntly put suggests money for bribes and kickbacks.
Latest information shows government has been paying Gaingrid the US$100 million as it now owed only US$36 million as at 7 April 2025.
About US$6 million of that amount was due to be paid within seven days from 7 April 2025; by 14 April.
This information is contained in a letter dated 7 April 2025 written by Finance ministry senior economist Itai Munaki to Ecobank Managing Director Moses Kurenjekwa.
This US$36 million venal transaction is fuelled by corruption and bribery as it appears to have been engineered and loaded onto the original US$60 million owed to Gaingrid, which the ministry purports to have discounted to US$20 million through Treasury Bills.
Ecobank is at the centre of the deal as the conduit for the movement of funds and buyer of Treasury Bills held by Gaingrid at a heavy discount of US$20 million, a third of the face value.
The bank agreed to discount the 5% incentive – US$60 million – owed to Gaingrid to US$20 million, although the repayment amounted to US$100 million, according to official documents.
This confusion seems to be designed and calculated to aid and abett fraud on public funds.
A source told The NewsHawks that “there is method in the madness”.
In a letter to Kurenjekwa, the Ecobank boss, Guvamatanga says he had clinched a US$20 million discount deal to settle the US$60 million debt to Gaingrid.
Yet in the same letter – in the subsequent paragraph – the permanent secretary also says his ministry undertakes to “irrevocably pay” Gaingrid at least US$8 million monthly for 12 months on or before the 10th of every applicable month, which means US$96 million in total.
In terms of the Public Finance Management Act [Chapter 22:19], the state has the authority to raise or borrow money from the market for its operations, including through Treasury Bills, but only through the minister, not the permanent secretary as done by Guvamatanga, worse still not by a junior official.
Apart from the dodgy figures and murky repayment arrangements, as well as the cronysim and a stench of corruption, the transaction is blatantly unconstitutional and illegal, lawyers say.
In the letter to Kurenjekwa, dated 4 September 2024, Guvamatanga writes:
“The Managing Director
Ecobank Zimbabwe Limited
Block A, Sam Levy Offce Park, 2 Piers, Road, Borrowdale, HARARE.
Attention: Mr. M. Kurenjekwa
Dear Sir,
RE: USD20,000 ,000.00 (TWENTY MILLION UNITED STATES DOLLARS) CASH PLEDGE AND COLLATERISED FACILITY AND SUPPORT LETTER FOR GAINGRID
INVESTMENTS (PRIVATE) LIMITED LOAN REPAYMENTS
The Reserve Bank of Zimbabwe and the Govemnment of Zimbabwe has contracled Gaingrid Investments (Private) Limited (“Gaingrid”) to assist in boosting the County’s gold reserves.
Through this scheme, Gaingrid willbe purchasing gold from small, medium to large-scale miners across the
Country. Graingrid willbe entitied to 5% incentives from the Ministry of Finance, Economic Development and Investment Promotion (MOFEDIP) for gold delivered to Fidelity Printers and Refineries.
As such Ecobank has agreed to discount the 5% incentives owed to Gaingrid currently of USS60 million by MOFEDIP.
Ecobank has agreed to discount these receivables up to a limit of USS20,000,000.00 (Twenty United States Dolars) (“The Facility).
MOF undertakes to irrevocably pay Gaingrid monthly instalments of at least USD8 million or their incentive claim for the next 12 months using the Ministy’s funds held with Ecobank or any other
bank thereof.
The ministry wil pay these incentives to Gaingrid account held with Ecobank.
These payments willbe made on or before the 10% of every month. All facility fees will be by Galingrid.
MOFECIP has authorised George T. Guvamatanga whose signature is appended below, to represent the Ministry and sign this document and give elfect to the above said arrangement until the facility has been paid in full.
Yours faithfully
For and behalf of the Minister of Finance
SECRETARY.04 SEP 2024
Geòge T_Guvamatanga
SECRETARY FOR THE FINANCE, ECONOMIC DEVELOPMENT AND INVESTMENT PROMOTION.”
In the 7 April 2025 letter’ Munaki writes to Kurenjekwa on behalf of Guvamatanga.
“07 April 2025
The Managing Director
Ecobank Zimbabwe Limited
Block A, Sam Levy Offce Park
2 Piers Road
Borrowdale
HARARE
Ref: Secretary for Finance & Economic Development Mgandane Dodlo Bullding
Corner Samora Machel Avenue/Simon V. Muzenda, Harare
ZIMBABWE
Attention: Mr. M. Kurenjekwa
Dear Sir,
RE: CONFIRMATION OF OUTSTANDING GOLD INCENTIVES FOR GAINGRID INVESTMENTS (PRIVATE) LIMITED
The Ministry of Finance, Economic Development and Investment Promotion (“MoFEDIP”) wishes to confim it is owing US$36 million which relates to 5% gold incentives.
In the next 7 Days we shall be making a payment of USD6 milion in respect to the above.
We hope you find the above to be in order.
Yours faithfully
For and behalf of the Minister of Finance
I. Munaki
FOR SECRETARY OF FINANCE, ECONOMIC DEVELOPMENT & INVESTMENT PROMOTION.”
Government has been significantly replying on treasury bills, a short-term state debt instrument backed by Treasury, to pay its obligations.
The treasury bills are usually heavily discounted mainly through banks.
Discounting treasury bills can be considered corrupt if it involves unfair allocation too certain favoured individuals or entities without following a transparent and fair process.
Under such circumstances, officials receive bribes or kickbacks in exchange for favourable treatment in the allocation or pricing of treasury bills.
Officials or individuals with access to confidential information use that to profit from the purchase or sale of treasury bills.
The auction process for treasury bills is manipulated to benefit certain individuals or entities.
These practices can undermine the integrity of the financial system and create unfair advantages for those involved.
The main characteristics of TBs are:
a) they are issued by the national treasury;
b) they are short-term in nature, and
c) they are transferrable, hence the discounting in this case.
According to the Public Finance Management Act, the State has the authority to borrow money.
In terms of section 54 of the Public Finance Management Act, the Minister of Finance is empowered to borrow by way of:
a) the issue of bonds or stock; or
b) the issue of Treasury bills; Or
c) an advance or bank overdraft.
Section 53 of the Act states the purposes for which the minister may borrow money as:
d) to refinance a maturing debt or a loan paid before the redemption date; or
e) to finance national budget deficits; or
f) to obtain foreign currency for any Government undertaking; or
g) to maintain credit balances on a bank account of the Consolidated Revenue Fund; or
h) to regulate internal monetary conditions should the necessity arise; or
i) any other purpose approved by the House of Assembly by special resolution.
In this case, Guvamatanga was the main executor – not the minister as required by the law.
The gold deal scandal comss hot kn the heels of another murky transaction in which Guvamatanga was accused of providing an “illegal and unconstitutional” bank guarantee for a US$20 million loan to a seed company linked to command agriculture corruption.
Guvamatanga, in a letter to Ecobank, said Zimbabwe owed Valley Seeds US$191 578 835 as of February 2025.
Ecobank, the permanent secretary added, had now agreed to discount this legacy debt “up to a limit of US$20 million” which would be advanced as a loan to Valley Seeds, with treasury paying it back in instalments of US$5 million in a 12-month period, takhhhhhhghhhhing it to US$60 million.
Former Finance minister Tendai Biti has described the transactions as looting on a grand scale.