Zvimba East Veterans Investment Company (ZEVIC), a company wholly owned by veterans of the liberation struggle, is in turmoil amid revelations that its bank account was frozen due to unlawful activities, including document tampering and fraudulent transactions involving thousands of dollars.
The company, which is involved in property development and agriculture, is teetering on the brink of folding, after fallout among the directors and shareholders.
Insiders told Standard People that the chaos at ZEVIC was being caused by divisions within associations representing veterans of the liberation struggle.
They said the arrest of seven directors last week were orchestrated by a faction of the directors and shareholders and was meant to sideline others to pave the way for looting of public funds.
Several thousands of dollars were withdrawn illegally between June 2023 and January 2024, insiders told Standard People.
Three directors and shareholders namely Douglas Mandaza, Clifford Rutsate and Jowel Samuel Muzhamba as well as an employee Michael Changadzo were arrested on January 31 this year and appeared in court for fraud.
According to court papers in possession of this publication, the quartet during the period extending from December 27, 2023 to January 2, 2024 at FBC Building Society, Leopold Takawira Branch, Harare allegedly forged CR6 documents for ZIVEC, which has nine directors instead of 19.
ZIVEC lost US$13 000 through the illegal activity.
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The four are out on bail after paying US$50 each and will be back at the High Court on October 8 for continuation of trial.
An internal audit also exposed unprecedented grand scale looting of public funds by the directors and employees, including misappropriation of US$100 000 between June and August 2023 where they allegedly stashed the money in a fridge belonging to Changadzo.
“At that time, Changadzo was the general manager while Mandaza and Peter Razemba were the finance director and security and loss control director, respectively,” the insider said.
“That is the period Mandaza was finance director and he misappropriated more than $100 000.
“At the end of September they orchestrated the theft of about $40 000, according to the internal audit.
“The rest of the amounts between December 12, 2023 and January 3, 2024 were unauthorised withdrawals.”
Insiders said following the expose, ZIVEC had to restructure that saw Retired Major Joe Chimonyo taking over as the CEO in a new set up that had Mashonaland West war veterans chairperson Cornelius Muoni retain his post as patron of the war veterans company.
“The comrades that were booted out are trying to come up with a splinter group and access to the company purse,” said the source.
“They are allegedly destabilising ZIVEC and causing pandemonium within the company.
“They have allegedly tried to tamper with company documents, including changing the original CR6 that had 14 directors with a fraudulent one of 19 directors and another one of nine directors.”
The sources also said the arrest was allegedly a ploy to manoeuvre the splinter group’s way to the bank.
“When they got the other directors arrested last week on Thursday, the splinter group members were orchestrating that they would not appear in court the following day at civil court where they are plaintiffs claiming rights of the fake documents,” said the source.
“They managed to obtain a default order despite their bail restrictions from the High Court.
“The order was compelling them to be the actual signatories.
“This is why they are at the bank trying to access stakeholder funds as they did before since this project started.”
Insiders said the ZEVIC fate could only be determined by the High Court ruling on October 9.
ZEVIC CEO Chimonyo could not be reached for comment yesterday.
