Masimirembwa is accused of prejudicing Canadile Miners (Pvt) Limited of US$300 000 by ordering the company to pay money to Messrs Farai Mutamangira and Associates for services the law firm did not render.
Canadile director Lovemore Kurotwi has since written to the officer commanding police’s Criminal Investigations Department (CID) Serious Fraud calling for investigation into the matter.
“I hereby register a complaint against Mr Godwills Masimirembwa (the chairperson of ZMDC) for having prejudiced the company of US$300 000 by ordering the company to pay that amount to Messrs Farai Mutamangira and Associates,” reads part of the letter dated 8 January 2011.
“I request that this matter be thoroughly investigated.”
The letter was also copied to police commissioner-general Augustine Chihuri, deputy commissioner general (crime) and the Anti-Corruption Commission.
CID spokesperson Augustine Zimbili could not confirm or deny that police had received the letter.
“If you had phoned me earlier I would have been able to verify it for you,” said Zimbili on Saturday. “I am not in the office today.”
Mutamangira’s legal fees statement, which is in our possession, also states that the law firm did not do any legal work for Canadile.
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Kurotwi and five ZMDC executives are currently facing charges of fraudulently acquiring diamond mining claims in Chiadzwa.
Canadile’s licence to mine diamonds in Marange was withdrawn by government last year when the charges surfaced.
In a letter dated August 30, Mpofu wrote to the chairpersons of ZMDC, the Minerals Marketing Corporation of Zimbabwe (MMCZ) and Marange Resources ordering them to promptly pay the legal fees to Mutamangira.
Mutamangira and Associates are Mpofu’s personal lawyers.
“Please note that the ACR and KPCs issues are affecting all your institutions, without the services of the attorneys, the process registered to date would have been difficult to achieve,” wrote Mpofu.
“Your institution shall bear your one third (1/3) share of the bill presented and payment of the same be forwarded to the account details furnished.”
But in hand written instructions Masimirembwa, who was de-registered as a lawyer after helping himself to money entrusted to him by clients, ordered ZMDC and MMCZ to pay US$150 000 each while Canadile was told to fork out US$300 000.
The money was deposited into Mutamangira and Associates’ Standard Chartered Bank Avondale Branch, account number 8700209467001.
On January 5 2011, Canadile’s lawyers Chikumbirike and Associates legal practitioners wrote to Masimirembwa threatening to take legal action against the disgraced lawyer.
“However please note that you, in your personal capacity are responsible for the misdirection of the amount due to Canadile Miners (Pvt) Ltd, and therefore liable for any consequences that follow,” said the letter.
The letter said Masimirembwa disbursed the money from the mining firm and yet Canadile did not feature in Mpofu’s instructions.
“In our view, you were on a frolic of your own. The fact of the mention of the instruction to Marange Resources (Pvt) Ltd does not distract from this position,” said the lawyers. “Marange Resources (Pvt), is a shareholder of Canadile Miners (Pvt) Ltd, (50%).”
They argued that Marange cannot give authority for the disbursement of such an amount, which it is a mere 50% equity holder.
They added that company transactions are not conducted through shareholders of a company but through its board of directors.
Canadile had a board comprising of five directors appointed by Core Mining and Mineral Resources (Pvt), on one hand, and another five from Marange Resources (Pvt) Limited.
Efforts to get a comment from Masimirembwa and Mpofu were fruitless yesterday.
The High Court has since barred Mutamangira from representing the ZMDC and Marange Resources because of the firm’s alleged interests in the two mining companies.
Justice Susan Mavangira last week also said Mutamangira and Associates should not be allowed to present the two companies in the matter after the same law firm prepared and commissioned affidavits of their clients.
