South African authorities have started auctioning the property of Marry Mubaiwa, the ex-wife of Vice President Constantino Chiwenga to compensate victims of financial crimes she allegedly committed years ago, an official has announced.
The property in Pretoria is suspected to be linked to illicit activities.
The National Prosecuting Authority of Zimbabwe announced the development in a statement on Monday.
In a gesture against transactional financial crime, the South African High Court had declared Mubaiwa’s luxury immovable property located at ERF 191 Sterrewag, Extension 3, and two Land Rovers as assets that should be forfeited to the South African state in December 2022.
These assets had been placed under a preservation order since February 9 2022, due to their alleged connection to proceeds from crimes such as money laundering and illicit financial flows.
“The High Court ordered that the said properties be placed under the custody of an auctioneer, with proceeds of the public sale to be directed towards compensating the victim(s) of the offence.
“One of the forfeited vehicles was recently auctioned with the proceeds set to be transferred to the victim,” announced the NPA.
The NPA also said this case is a landmark demonstration of the strength and efficacy of cross-border legal cooperation within the Southern African Development Community (SADC).
“The outcome reflects the enduring partnership between the NPA of South Africa and its Zimbabwean counterpart in addressing transnational financial crimes and the recovery of proceeds of crime,” reads the statement.
Documents show that South Africa’s NPA on October 14 2021, received a request for Mutual Legal Assistance (MLA) for Zimbabwe against Mubaiwa.
ZACC Commissioner Frank Muchengwa told South African authorities the anti-graft body had received information from a whistleblower that Mubaiwa had fraudulently exported funds to South Africa to buy some properties.
It is alleged that Mubaiwa instructed Memory Chakulinga, her relative and Managing Director of her two companies in SA, Falcon Project Pty and Bonnets Electrical Pty in Pretoria, to raise proforma invoices for the purchase of event tents and chairs and prepaid meters.
Muchengwa said the invoices would then be referred to the Commercial Bank of Zimbabwe (CBZ) as if they specifically intended to purchase the goods, but the funds were allegedly diverted to purchase her personal properties.
“Chakulinga states further that Mubaiwa is her aunt and she recalls Mubaiwa approaching her to assist in setting up a business in South Africa, as she indicated that she had won a tender in Zimbabwe. Chakulinga also allegedly said Mubaiwa had told her that she had the facility to get money from the Reserve Bank of Zimbabwe for funding the business,” Muchengwa said.
Chakulinga allegedly offered assistance with a place to open a business at her premises.
She was then asked to do proforma invoices in the name of Tanor Investment for the supply of event hosting accessories, tents for R203 308 and the invoices had Mubaiwa’s Falcon Suppliers FNB bank accounts.
Court papers show that in December 2018, R203,308 was deposited into the account from CBZ and according to the narration, it was intended for the purchase of tents.
“According to Chakulinga, upon receipt in her account the funds, Mubaiwa instructed her to divert the funds towards purchase of Range Rover at Menlyn in Pretoria,” reads court papers.
“Chakulinga states that she paid R4 million to Range Rover Menlyn and she was told by Mubaiwa that the motor vehicle was to be taken to Zimbabwe but to her surprise, it was registered in South Africa under Marry Mubaiwa.”
In May, according to Chakulinga, another R2 million was deposited into Bonnette Electrical FNB account and she was called by the bank to confirm the receipt of the funds.
She did what she had been instructed to do before but this time on the invoices indicated she was to buy electrical prepaid meters.
Chakulinga added that after the release of the funds, Mubaiwa ordered her to transfer R4 96 500 to the Martin Potgieter Trust Account at Standard Bank.
According to Muchengwa, there was a financial flow from CBZ to FNB that was detected on the accounts.
It was established that one of the signatories at Mubaiwa’s East Town Commodities was Jeffery Jenje and he allegedly confirmed this.
Jenje also confirmed payments that were made and also that Mubaiwa indeed purchased two vehicles.
Proof of vehicle purchase was provided by Jacobus Hercules Du Preez.
Du Preez said Mubaiwa bought two vehicles worth R1,6 million and R1,8 million, respectively.
The ongoing investigations also revealed that Mubaiwa bought a house by sourcing cash from individual companies to purchase on her behalf.
