THE purchase of Zuva Petroleum assets by a company owned by John Mushayavanhu has torched off controversy over allegations the banker could be fronting for a British-based commodities firm,
Woble Investments, which is owned by Mushayavanhu, the chief executive officer of banking group
MEM is registered in
After the sale of the assets to
But the announcement camouflaged a raging domestic conflict over ownership, with a National Indigenisation and Economic Empowerment Board (NIEEB) report suggesting
The NIEEB report, a copy of which was seen by the
According to documents seen by this newspaper, Alveir is one of several financing arms of
"The real owners are and will remain Alveir, and now
"The board recommends that for the reasons (mentioned in the report), the Minister rejects the proposals and direct that only a genuine entity be allowed to purchase the 51 percent shareholding," said NIEEB.
Mushayavanhu this week angrily reacted to request for a comment on the issue, saying: "This is a tired story being peddled by one Don Nyamande, an ex-employee of Zuva. He has peddled numerous, versions of the same story... ."
"For the record, my transaction has been approved by NIEEB,
"I have connections with various providers of offshore and structured financial solutions as a result of my many years in the financial sector and was able to secure the funding for the transaction using these contacts," he said.
But Indigenisation Minister,
"I have raised the question with players involved in that transaction so that we can explain to people what happened. I have not approved the deal," he said.
NIEEB said Woble was being financed by a loan from
NIEEB, which was given questions on the issue by the
NIEEB said in
"In the same meeting it was also indicated that messrs Mushayavanhu had an interest in Strauss Zimbabwe of about 10 percent. Mr Mushayavanhu, through FBC (Bank) was also supposed to arrange for financing," NIEEB said.
"At some point it must have been apparent that the indigenisation certificate of Strauss was not forthcoming, hence the decision to have Woble Investments acquire the shares instead," said the report.
It said Alveir had in March approached the Mauritian courts to enforce its right of first refusal after reports emerged about the planned transaction with Strauss.
"However, in this instance it appears to have no problem with Woble acquiring the same lot of shares. The only logical conclusion is that Alveir is not just agreeable to this but is intricately involved in this transaction," said NIEEB.
It said that it was interesting that Ketani Joshi, who has interests in Strauss, also had interest in FBC led by Mushayavanhu.
Ketani is a member of the
They helped start
When asked about the involvement of the Joshis in the transaction, Mushayavanhu said: "The
But he skirted questions on the involvement of
NIEEB said: "
The indigenisation board said in order to more properly assess this proposed transaction, the history of the
NIEEB, which advises the Minister of Indigenisation and Economic Empowerment, said in 2010,
- That Masawara would dispose 10 percent shareholding to an employee share trust;
- That Masawara would dispose 50 percent of its retail sites to its dealers;
-That Masawara would dispose shares to youths, women and the disabled; and
- That Masawara would treat the leases of all dealers fairly.
But the transaction had been opposed by indigenisation players and other stakeholders for being "a sham, a front and not a genuine indigenisation transaction," said the NIEEB report.
"Despite this, approval was granted on the aforesaid conditions as a means of promoting broad-based indigenisation," said the report.
It noted that complaints by dealers and workers that conditions attached to the transaction had not been fulfilled led to investigations by NIEEB which found that
"This position was contrary to the reported position from
It said there was reason to suspect that Alveir held more interest than 49 percent since it had funded more than 75 percent of the finance under terms undisclosed to the ministry.
It said if
"This shows that
It also noted: "Further, despite providing the bulk of the finance for the transaction, Alveir was never mentioned prior to and upon conclusion of the transaction and acquisition of indigenisation approval. The fact is important for the question who is the actual buyer, and therefore owner of the former BP and Shell assets."
The report said it had tried to ascertain the real identity of Alveir Management but had failed.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- U.S. to Relinquish Gov't Control Over Internet
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Some California Cities Seeking Water Independence
- Will Missing Malaysian Jet Prompt Aviation System Change?