Businessman convicted of US$2,8m fraud

Fidelis Munyoro

Chief Court Reporter

HARARE businessman Tinashe Sibanda has been convicted of orchestrating a fraudulent scheme that saw over 4,470,000 litres of diesel, valued at US$2 805 900, being illegally imported into Zimbabwe using forged rebate letters.

Sibanda, along with his company, Centenary Tobacco Company, masterminded this elaborate operation by employing a forged rebate letter, reaping immense financial gains while bypassing the nation’s revenue systems.

The scam unravelled when sharp-eyed authorities detected anomalies linked to the 17th bill of entry, leading to a full investigation. After a full trial before Justice Benjamin Chikowero in the High Court, Sibanda and his company were, last week, found guilty of fraud.

The sentencing judgment, eagerly awaited, will be handed down shortly by the same judge following the new sentencing guidelines adjusted for aggravating and any mitigating circumstances.

Despite vehemently denying the charges, Sibanda’s defence crumbled under the weight of accurately presented evidence. Justice Chikowero’s judgment methodically traced the chain of events triggered by Sibanda’s actions, leaving no doubt as to his culpability.

The court heard how Sibanda, with calculated intention, approached CMED fuels manager Mr Billy Maswaure to gather crucial information required for Centenary Tobacco Company’s purported duty-free diesel imports.

Armed with this information, Sibanda returned to Mr Maswaure’s office a week later, wielding a forged rebate letter, a move that set the fraudulent machinery in motion.

Ms Emily Bvumbi, a ZIMRA revenue supervisor, delivered damning testimony, unequivocally declaring the rebate letter a forgery. She explained that the document was neither issued by ZIMRA nor uploaded into their system, highlighting its fraudulent origins.

Further testimony from then Permanent Secretary of the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development Mr John Basera solidified the prosecution’s case. Mr Basera categorically denied signing the document, which falsely portrayed him as one of its signatories.

Justice Chikowero left no room for ambiguity, stating that Sibanda’s involvement was central to every facet of the fraudulent scheme. The judge detailed how Sibanda knowingly presented the forged documents, demonstrating a clear understanding of their illegitimacy.

Even more damning was Sibanda’s use of a genuine rebate letter, originally issued for the import of steel sheets, to lend false credibility to his forged documents.

This blatant manipulation exposed Sibanda’s calculated intent and deep knowledge of the fraudulent nature of his actions. The court also dismantled Sibanda’s attempt to deflect blame onto two shadowy figures, Hamunyari Magura and Bongani Dube, whom he claimed to have engaged as “tax experts”.

Sibanda alleged he paid the duo US$1,500 for their services, but failed to produce any evidence of their existence. No receipts, no qualifications, no addresses, and no testimonies from these alleged individuals were presented. Justice Chikowero dismissed this defence as a desperate fabrication, remarking that it was inconceivable for a managing director of a registered company to operate under such dubious circumstances.

Sibanda’s evasiveness and arrogance on the witness stand further sealed his fate. He provided long-winded, rehearsed responses and grew visibly irritated when pressed on critical details, such as the use of the vast quantities of duty-free diesel.

His claim that the diesel was used to clear land for a tobacco auction floor in Mashonaland Central Province was riddled with contradictions and lacked credibility. Justice Chikowero described his testimony as “feeble, half-hearted, and hazy,” ultimately exposing it as a poorly constructed falsehood.

The court concluded that Sibanda and Centenary Tobacco Company had reaped massive financial rewards through their fraudulent actions, exploiting loopholes and forging documents with brazen confidence. The defence’s narrative failed to provide a single plausible explanation for the anomalies unearthed during the investigation.

Justice Chikowero emphatically ruled that the state had proven its case beyond a reasonable doubt, branding the defence’s story as “beyond reasonable doubt false.”