HARARE – In a dramatic turn of events, businessmen Mike Chimombe and Moses Mpofu have been convicted of defrauding the government of a staggering US$7 million in a botched Presidential Goats Scheme tender. The pair have been languishing in remand prison for over a year, since their arrest in June of last year. They now face a tense wait until October 31, when they will return to court to learn their fate at a sentencing hearing.
The case, presided over by High Court Judge Pisirayi Kwenda, has captivated public attention due to the sheer scale of the alleged fraud and the high-profile nature of the accused.
In a scathing assessment of Mpofu’s defence, Justice Kwenda stated that the first accused had, in effect, “shot himself in the foot.” The judge highlighted that Mpofu’s own testimony, in which he claimed to have acted solely in his capacity as a director and under instruction, provided sufficient evidence for the State’s case. “He said all he did was in his capacity as a director and that he was directed to do so. So there was no further proof needed by the State,” Kwenda asserted.
Mpofu’s defence hinged on the argument that the charges should have been brought against their company, Blackdeck, rather than against him personally. However, Justice Kwenda dismissed this argument, stating: “A company is just a person in terms of the law. It’s really not a natural person created by God. It being a fiction, you can’t touch it. It does not have a brain of its own, it does not think or act on its own, so it’s very difficult to separate the acts of a company from the acts of the person who represents it.”
The judge further elaborated that while a corporate body might be held liable, the State has the discretion to pursue charges against individuals. “The fact that one is a director gives rise to that liability,” he explained.
Justice Kwenda also criticised Mpofu for failing to call witnesses to support his defence, despite initially indicating that he would do so. “He knew these witnesses were important as he was being charged in his personal capacity. His decision not to call these witnesses was his own, except that one witness had died, which was not verified by production of evidence,” the judge stated.
He added: “Where a litigant threatens to call witnesses to confirm his defence and later abdicates, the usual inference is there was no intention to call that witness, or that the witness, if called, would not confirm that defence.” Kwenda dismissed Mpofu’s explanation that he changed his mind after realising he was being charged personally, describing it as “lame because he knew that from the beginning.”
Turning to the case against Chimombe, Justice Kwenda rejected his claims of minimal involvement in the scheme. “The second accused person strenuously denied he had much involvement in this scheme. We must resolve that factual dispute, and that can be rectified by reference to the testimony of witnesses,” the judge said.
The judge highlighted the testimony of witnesses John Bhasera (agriculture ministry secretary) and Nhundurwa, who stated that they would attend meetings together with Chimombe. “We therefore found that he participated. We did not find his explanation convincing. If he said he attended meetings with Nhundurwa, that would have nothing to do with lobbying for an award for Blackdeck because it had already been awarded,” Kwenda stated.
The judge also dismissed Chimombe’s assertion that he attended meetings merely to resolve disputes as a member of the Economic Empowerment Group (EEG). “There was clearly another reason for this. Why would he be there to attend a business meeting? It shows he had a mandate,” Kwenda queried.
Ultimately, Justice Kwenda concluded that both Mpofu and Chimombe had acted in common purpose and were therefore equally culpable. “We found that the version of the first accused person, that Chimombe was co-opted to represent the company, is binding. To that extent, we found that the second accused was controlling the affairs of the entity. His liability flows from his participation,” the judge stated.
The case revolves around a tender for the supply of 632,001 goats under the Presidential Goat Pass-on Scheme, a government initiative aimed at distributing goats to needy households across the country. The National Prosecuting Authority (NPA) alleges that Mpofu and Chimombe, through Blackdeck Private Limited, responded to a September 2021 call by the ministry of lands and agriculture inviting bids for the supply of the goats under a scheme worth US$87,757,16.
Prosecutors say after winning the tender, it was Blackdeck Livestock and Poultry Farming, an unregistered company, which signed documents with the ministry. Mpofu represented the company and Chimombe acted as a witness.
The NPA alleges that the two men misrepresented that Blackdeck Private Limited was in full compliance with the Zimbabwe Revenue Authority (ZIMRA) and the National Social Security Authority (NSSA) requirements. It is alleged that the company had no valid tax clearance certificate from ZIMRA for 2021, and that a QR code attached to the NSSA compliance certificate belonged to a different company called Skywalk Investments. Both documents were required for one to be eligible to bid for the tender.
Acting on the misrepresentations, prosecutors say the ministry went on to pay 30 percent of the contract in the local currency, an amount of ZWL1.6 billion which was allegedly equivalent to US$7,712,197 in two instalments on April 21, 2022, and June 29, 2022.
Following delays in delivering the goats, the ministry engaged Blackdeck and was informed that the company had mobilised 32,500 goats across the provinces which were ready to be distributed to the final beneficiaries. A verification process by the ministry at various sites, it is alleged, however showed that the company only had 3,713 goats.
“After the ministry of lands realised that they were being deceived by the accused persons they then cancelled the contract on August 29, 2022,” charged the NPA.
To date, the prosecution says 4,208 goats worth US$331,445.25 have been delivered and the ministry was prejudiced of US$7,380,751.85.
It was further established that Blackdeck Private Limited was deregistered from the NSSA system in January 2016. Further investigations established that Blackdeck Private Limited was not issued with a ZIMRA tax clearance certificate for the year 2021.
During the trial, Mpofu maintained that the dispute was a civil matter and that the State had erred in charging him in his personal capacity instead of their company, Blackdeck. Chimombe denied being involved in the deal, claiming that he was only there to assist with deliberations as a member of a black empowerment pressure group.
Their lawyers have previously argued that the two men were targeted in a complex capture of the legal system by their former business partner, Wicknell Chivayo, who blamed them for leaking audios on which he was heard stating that he had bribed several government officials to secure contracts for the supply of election materials, including chief cabinet secretary Martin Rushwaya, former Central Intelligence Organisation boss Isaac Moyo and Zimbabwe Electoral Commission chairperson Justice Priscilla Chigumba, among others.
Chivayo has claimed on social media that the two men will go to jail for 20 years.
In January this year, Kwenda, while turning down a bail application by the two business partners, said they risk being jailed for 20 years if convicted. “Regarding the seriousness of the offence, I have looked at the penalty and the presumptive penalty for fraud is 20 years,” Kwenda said then, adding that if a fraud involves public funds, the sentence will be severe.
Despite the guilty verdict, Mpofu’s lawyer, Ashiel Mugiya, has vowed to appeal the decision at the Supreme Court after sentencing. Speaking to reporters outside the court, Mugiya stated: “We respect the judgement, but we are not happy with it. We will appeal at the Supreme Court after sentencing and we believe we have a number of good grounds for appeal.” Mugiya was instructing Professor Lovemore Madhuku. Tapson Dzvetero represented Mpofu.
Mpofu also argued that the money, paid in a very unstable local currency at the time, depreciated before it could be used for buying goats. At the time of their arrest, the two men said the contract was still running, and the ministry had not declared a breach. In fact, they were seeking to renegotiate it due to currency losses.
The case continues to unfold, and the sentencing hearing on October 31 is expected to be another dramatic chapter in this high-stakes legal battle.
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