A legislator and top Harare businessman was on Thursday hauled before the Harare Magistrate’s Court to explain his role in a multi-million dollar scandal that has hit Zimbabwe’s financial sector.
Phillip Chiyangwa becomes the first politician suspected of involvement in the financial sector crisis that has seen a run on deposits by panicking depositors.
He denied in court any part in the scam involving 61-billion Zimbabwean dollars (US$77-million at the official rate, US$13,5-million on the parallel market) that saw two directors of an asset management company arrested last week.
Chiyangwa, who is also the chairman of the ruling Zanu-PF party in Mashonaland West province and member of parliament for the provincial capital of Chinhoyi, told the court he had no personal interest in the alleged activities of the troubled asset management firm.
He also denied allegations of interfering with police investigations, saying he only wanted to assist the two directors in his capacity as a proponent of black business empowerment.
The two directors — Nyasha Watyoka and Gilbert Muponda of ENG Asset Management — had before their arrest on New Year’s Day reportedly called on Chiyangwa seeking protection.
Police picked up the ENG’s bosses after the central bank, in a crackdown on errant financial institutions, forcibly shut down Century Discount House, which was run by ENG.
On their arrest, the two directors moved two of their luxury cars to Chiyangwa’s upmarket Borrowdale suburb home.
But Chiyangwa said he took in the two cars in a bid to protect the company’s assets from being grabbed by panicky creditors and investors.
Police say they have impounded 18 high-priced late-model vehicles during their investigations into the scandal.
The state alleges that the two directors diverted clients’ money, which was intended for investment in the money market, to buy properties in Zimbabwe and overseas as well as to import luxury vehicles.
Chiyangwa was summoned to explain his role in the affair, but was not charged with any offence. – Sapa-AFP