ZC: summary of charges


Independent SportView

BELOW is an outline of charges levelled against ZC following an investigation by the Reserve Bank of Zimbabwe’s Financial Intelligence Inspectorate Evaluation and Security u

nit into the affairs of local cricket;


* Activity: Failure to repatriate US$6 293 917 proceeds from sale of TV rights.


Offence: Violation of Section 5(i) of the Exchange Control Act Chapter 22.05 (as read with) Section 5 (1), (2) of the Ex/Control Regulations SI 109 of 1996.


Supporting facts/evidence: Octagon CSI collected revenue on behalf of ZC and deposited into the latter’s Barclays London Acc No 58255922, Knightsbridge Business Centre, UK;


* Activity: Purchase of Outdoor Broadcasting (OB) van for £1 million.


Offence: Violation of Section 5 (1) of the Exchange Control Act Chapter 22.05 arw Section 5 (1), (2) of the Ex/Control Regulations SI 109 of 1996.

Supporting facts/evidence: Octagon CSI and Ten Sports purchased an OB van on behalf of ZC and subsequently ZC ceded its rights of export proceeds from the sale of boundary boards and TV signals respectively to settle the debt;


* Activity: Outstanding debt on assembly of OB van.


Offence: Violation of Section 5 (1) of the Exchange Control Act Chapter 22.05 arw Section 5 (1), (2) of the Ex/Control Regulations SI 109 of 1996.

Supporting facts/evidence: The revenue collected from the cession was insufficient to settle, and left a balance of £23 000 in respect of services for assembling the OB van in August;


* Activity: Purchase of vehicles using funds from the off-shore accounts which were subsequently sold to Croco Motors -US$771 111,28.


Offence: Failure to repatriate earned foreign currency, thereby contravening section 5 (1) of Ex/Act 22.05 arw section 11 (1) of the Ex/Control regulations SI 109 of 1996.


Supporting facts/evidence: Agreements between Croco Motors and ZC, and documents specifying amounts paid to offshore car suppliers;


* Activity: Deducting of commission from sale of TV rights by Octagon without Ex Control authority – US$1 258 783,40.


Offence: Violation of Section 5 (1) of the Ex/Control Act Chap 22.05 arw Section 5 (1) of the Ex/Control Regulations SI 109 of 1996.


Supporting facts/evidence: Copies of distribution statements sent to ZC by Octagon, indicating 20% commission deducted from gross sales of TV rights;


* Activity: Diversion of US$75 000 to South Africa, which was paid by Ten sports for the use of boundary boards.


Offence: Failure to fully repatriate export proceeds. Violation of Section 5 (1) of the Ex/Control Act Chap 22.05 arw Section 5 (1) of the Ex/Control Regulations SI 109 of 1996.


Supporting facts/evidence: A statement by Lydia Imbayago, a former ZC employee;


* Activity: Depositing of players’ allowances into offshore bank accounts – US$544 018.


Offence: Violation of Section 5 (1) of the Ex/Control Act Chap 22.05 arw Section 5 (1) of the Ex/Control Regulation SI 109 of 1996. Violation done by players and ZC board.


Supporting facts/evidence: Letters written by ZC to advise of relevant account numbers where allowances were supposed to be paid;


* Activity: Peter Chingoka was paid £50 000 after a resolution was passed by the board to make that payment in forex. Offence: The deal to pay Chingoka was a violation of Section 5 (1) of the Ex/Control Act Chap 22.05 arw Section 4 of the Ex/Control Regulation SI 109 of 1996.


Supporting facts/evidence: Attached copy of board minutes dated August 6 2004 where the decision to pay was made;


* Activity: ZC paid school fees for Masakadza for US$4 044,15, .. Mbwembwe for US$3 769,52, … Mkhosana US$15 117,34 and … Mukondiwa US$20 000.


Offence: Payments were done without Ex/Control approval, violating Section 5 (1) of the Ex/Control Act Chap 22.05 arw Section 4 of the Ex/Control Regulations SI 109 of 1996.


Supporting facts/evidence: bank reconciliations;


* Activity: ZC paid £5 000 for a Mazda 626 to RC Barnes. The purchase was a local purchase which should have been paid in local currency.


Offence: Violated Section 5 (1) of the Ex/Control Act Chap 22.05 arw Section 4 of the Ex/Control Regulations SI 109 of 1996.


Supporting facts/evidence: (Ma-naging director Ozias) Bvute’s comment on how ZC paid for the Mazda 626;


* Activity: ZC received foreign currency amounting to US$3 million, diverted the funds and invested them with CFX/Phoenix.


Offence: Violation of Section 5 (1) of the Ex/Control Act Chap 22.05 arw Section 5 (1), (2) of the Ex/Control Regulations SI 109 of 1996.

Supporting facts/evidence: CFX letters; and


* Activity: Chingoka wrote a £12 000 cheque to settle a debt he had incurred during a visit to the UK.


Offence: making payment outside Zimbabwe without Exchange Control authority. Violating Section 5 (1) of the Exchange Control Act Chapter 22.05 arw with Section 4 of the Exchange Control Regulation SI 109 of 1996.


Supporting facts/evidence: Attached copies of cheques.