Tobacco Industry and Marketing Board (TIMB) chairperson Patrick Devenish and former CEO Meanwell Gudu appeared in Harare magistrates court on Saturday, facing charges of criminal abuse of office.
The charges stem from their involvement in the unauthorized extension of a $397,000 loan to Ultimate Accolade (Private) Limited, a family company owned by Ituya Masuka.
The pair, who were arrested last week, were remanded in custody, with bail hearings scheduled for today, August 26, by Harare regional magistrate Sandra Mupindu.
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Details of the allegations
The Zimbabwe Anti-Corruption Commission (ZACC) arrested Devenish and Gudu following an investigation that uncovered the suspicious transaction.
According to the State, Devenish was responsible for overseeing TIMB’s strategic decisions, including approving contracts worth over $50,000 through board resolutions. Meanwhile, Gudu was tasked with implementing operational strategies and policies to achieve the organisation’s goals.
However, in May 2021, Devenish and Gudu allegedly conspired to defraud TIMB by granting a loan of $397,739 to the Masuka Family’s Ultimate Accolade (Private) Limited without informing the other board members or obtaining a board resolution.
The pair reported misrepresented the loan, making it appear as though it was being granted under the Tobacco Inputs Credit Scheme, funded by the Reserve Bank of Zimbabwe (RBZ).
This, despite being aware that the RBZ had ceased funding the scheme.
Fraudulent Contracts
The State claims that former CEO Gudu, who was on leave at the time, instructed special projects manager Lovemore Chikweya to present two contract agreements to acting Chief Operations Officer Blessing Dhokotera for signing.
When Dhokotera sought confirmation from Gudu via a phone call, he was assured that the contracts were for urgent special projects under the Tobacco Inputs Credit Scheme.
Subsequently, believing the misrepresentation, Dhokotera signed the contracts, facilitating the release of funds for the project. Consequently, the $397,739 loan was granted to Ultimate Accolade.
From the time the loan was granted in 2021 until late 2023, the state claims that no efforts were made to recover it nor did the company attempt to repay it.
The issue only came to light in late 2023 when the current acting CEO, Emmanuel Matsvaire, informed the board during a full board meeting. The board tasked the management to pursue debt recovery.
However, the loan account of Ultimate Accolade which was presented to the board indicated that as of this year, only $16,000 had been recovered from the total debt of $539,650 with interest.
Consequently, legal action was taken against the two executives. The state alleges that the duo acted in contradiction with their duties as public officers when they granted the contentious loan without board approval.
Additional charges against Gudu
Separately, Gudu is also facing another charge of corruptly concealing his personal interest in a transaction involving TIMB.
Court documents show that in 2018, TIMB sought to supply small-scale tobacco farmers with inputs. TIMB contracted several transport companies to ferry tobacco inputs from Harare and distribute them across the country. One of the ferrying companies was Mukanya Jeremiah Logistics.
Gudu allegedly used his wife to broker a deal with Mukanya Jeremiah Logistics, placing his eight trucks under the company’s name and securing a 10% commission on the total amount paid by TIMB for transport services.
Mukanya like the rest of the transporters was contracted for $1 per kilometre travelled. However, Gudu allegedly advised Mukanya Jeremiah Logistics to request an upward review of charges to $1.90, further profiting from the arrangement.
In December 2020, Mukanya wrote a letter asking for the review, which was granted by then-CEO Dr Andrew Matibiri. Notably, only Mukanya Logistics received the higher $1.90 rate.
Other arrests and charges
Besides Devenish and Gudu TIMB company secretary Tariro Chitsunge has also been arrested and charged with criminal abuse of office.
The State alleges that Chitsunge and Devenish manipulated the procurement process for cellphones and laptops, favouring a more expensive supplier, Solution Centre, over others.
Their actions allegedly prejudiced TIMB financially, violating procurement procedures.
Another accomplice, Chief Finance Officer Willard Zidyambanje, remains at large.
