HomePoliticsGwaradzimba’s Response to Gono’s Letter to Mugabe

Gwaradzimba’s Response to Gono’s Letter to Mugabe

1 IN response to the malicious allegations levelled against me as the administrator, and as a private citizen, I respond as follows:

In General:

a) The manner in which the administrator is remunerated is contractual;
b) What the administrator uses his earnings on, whether from his SMM assignment or any other sources, should be the administrator’s business;
c) The places where the administrator’s children go for their education should remain the business of the administrator’s family, not that of Mawere or Dr Gono;
d) If the administrator has committed any misappropriation of funds, due legal process should be instituted;
e) On the defamatory allegation by the Governor, that the Administrator’s “team” is preparing to acquire SMM, I reserve the right to seek legal advice on this; and
f) The Governor questions my professionalism in accepting the SMM Reconstruction appointment, and suggests I should have not accepted the same as I had been auditor of the company. This again is shameful. I was not appointed in 2004 to audit SMM, but to reconstruct that company. Even if it were an audit appointment, I had long left the audit of SMM in 2000 when I left KPMG. It is naive that one would want to pretend to
know the rules of professional conduct for a profession (where) one has no clue as to how that profession conducts its business.
2 I provide below more information about myself, the law as it relates to administration
fees in respect of companies under reconstruction, and the Administrator’s role in any payments by SMM.
Administrator’s background, in brief
a) A member of the Zimbabwe National Liberation Army from 1977 until 1980 at Independence. Demobilised from the Zimbabwe National Army in 1982.
b) Studied for his Ordinary and Advanced Levels examinations from mid 1982, writing the examinations in November 1983.
c)  Studied Accountancy at the University of Zimbabwe from 1984, coming out with a Bachelor of Accountancy (B.Acc) Honours Degree in 1986.
d) Joined articles of clerkship at KPMG in 1987, qualifying as a chartered accountant in 1989.
e) Appointed as a Partner in the KPMG Zimbabwe Partnership after eight years with the firm, in 1995.
f) Left KPMG in 2001 to form AMG Global Chartered Accountants, which is now a registered Swiss Verein for legal purposes, and has offices in  Malawi (2), Mozambique, South Africa, Zambia, and Zimbabwe (3). AMG Global employs over 120 people in Zimbabwe alone.
g) Bought his first farm in 1995, then three more in 1998/9. Two of the farms were surrendered to GOZ for settlement as part of the land redistribution.
h) Is still farming, specialising in tobacco and cattle, which activities should be expected to generate reasonable income.
Administration fees from the SMM reconstruction
a) Administration fees are charged as already explained under A l (iii)
b) It should be noted, that no new way for remunerating those in the administration of companies was created on the enactment of the Reconstruction Act, as existing legislation already provided for the payment of such remuneration. It cannot be said, therefore, that the reconstruction laws were created with the aim of benefiting AM Gwaradzimba and certain politicians, as has been alleged by Mawere. All other administrators of companies in this country (and there have been many of them) are paid in the same manner, namely in accordance with the provisions of Paragraph 3 of the Fifth Table of fees, as contained in the Seventh Schedule of the Companies Act, and no one has complained about it.
c) Also, the reconstruction of SMM was the first ever GOZ assignment that AMG Global were appointed to. It cannot, therefore, be concluded, as has been done by Mawere from time to time, that it is because of my GOZ connections that I was appointed to this assignment. Mawere should appreciate my role as liberator, which gave him the opportunity to be able to pretend to be investing in SMM.
d) Because of the difficulties which SMM finds itself in, for close to two (2) years now, the administrator has postponed invoicing the Company since 2007, neither has AMG Global received any money therefrom since the same time.
Summary and conclusions
The Administrator has raised the issue before, that the SMM Reconstruction cannot be concluded without judgement on culpability having been secured in terms of the Reconstruction Act, as well as without the Supreme Court’s decision on the appeal against the Reconstruction Order having been handed down. The two cases came before the Courts in 2007, and were initially postponed at the behest of  Mawere. Set downs had been secured for 21 May (Culpability) and 1 June 2009 (appeal against the Reconstruction Order). The matters were again postponed at the instigation of the Mawere camp, and using the ABD and the recent intervention of the Governor.
I kindly request your honourable minister to make an appropriate public announcement on the continued/reconstruction of SMM. The form and nature of such announcement would be entirely determined by your honourable minister, but may take the form of a pronouncement in the Government Gazette.

AM Gwaradzimba
Administrator — SMM Holdings (Pvt) Ltd

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