ZINARA bosses blow funds on wives, fake firm

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THE Zimbabwe National Roads Administration (ZINARA) finance manager and director were Wednesday arraigned before the courts on allegations of siphoning $300 000 from the parastatal using a fraudulent company. Simon Mudzingwa Taranhika, 53, and Shadreck Mutengabadza, 44, appeared before magistrate Ruramai Chitumbura who released them on $500 bail each.
They will be back in court on August 8.
ZINARA is being represented by its chief executive, Nancy Namatai Musiyiwa.
It is the state’s case that in 2011 ZINARA was advanced a 10 year loan facility of $206 million by the Development Bank of South Africa (DBSA) for the construction of 823km highway from Plumtree to Mutare.
The loan was released through Infralink Pvt Ltd, a subsidiary company jointly owned by ZINARA and Group Five Pvt Ltd.
NMB bank was nominated by DBSA to facilitate the loan repayment on quarterly basis. As such, all revenue in hard currency realised from ZINARA’s operations is channelled to NMB to remit DBSA.
But, due to foreign currency challenges in the country, remittances to NMB are mostly in bond notes leaving the bank with the task to source hard currency on behalf of ZINARA.
On May 3 this year, the two accused, without authority from ZINARA and in connivance with Grayriver Pvt Ltd directors Munyaradzi Paraiwa and Magaisa Sobuzibani, made a transfer of $300 000 to Grayriver Pvt Ltd under the pretext that the payment was reimbursement to Grayriver South Africa sister company Solarwatts Pvt Ltd.
They claimed that the company had made a payment of $250 000 to DBSA as part payment of ZINARA loan obligations with DBSA.
They made bank transfers to a number of beneficiaries.
The security department, however, received information to the effect that Grayriver Pvt Ltd was a fraudulent company and the case was reported to the police.
Investigations unearthed that Sobuzobani, the alleged principal director, had died in 2016. It was also established that the company’s address didn’t exist.
It was also unearthed that Mutengabadza’s wife Chemusaziva had received $1 500 from the $300 000 among other things.
This led to the duo’s arrest.
The two accused were signatories to Grayriver Pvt Ltd and Paraiwa never existed.
Linda Gadzikwa appeared for the state.