Old Mutual gets Vic Falls

FINALLY, Al Jazeera aired the first of the four-part series documentary Gold Mafia. Social media went into overdrive, with many people condemning the attitude and character of some of those implicated.

However, the gold mafia is only but one of those things happening as privatisation of public land is also on the increase.

The frightening thing about the gold mafia is how its activities are abetted by the State in the name of sanctions busting.

Secondly, the big players in gold smuggling or money-laundering are Anglo-Saxons or Indians.

Indigenous players do not have the international exposure and connections with the humongous amounts of money needed.

Uebert Angel, the Zimbabwe ambassador-at-large to Europe and Americas, at some point in the documentary admitted that he and his syndicate had never washed US$1,2 billion because most of their deals rarely topped US$300 million.

This is a big boys’ league and the players show it. Flying first or business class on the Fly Emirates everyday pushing gold is no joke.

In the meantime, let us get back to the continued privatisation of land under the Emmerson Mnangagwa administration.

The ink has not dried on the US$60 billion new Mount Hampden City that is being privately developed and will be run by a company for 15 years.

In Cabinet briefing number 2 of 2023, government was clear that the new city plan will be replicated.

Less than a month later, we are now aware that another private city is being developed in Victoria Falls as a joint venture between financial behemoth Old Mutual and the government of Zimbabwe.

The Zimbabwean government in 2013 created the Mosi-oa-Tunya Development Company for the hosting of the United Nations World Tourism Organisation conference.

The company’s mandate has since been broadened to spearhead the development of the Masuwe Special Economic Zone on a 1 200-hectare (ha) piece of land.

In a post-Cabinet statement, government said: “In August 2020, Cabinet broadened the mandate of the company to cover tourism infrastructure development in Victoria Falls. The company subsequently entered into a joint venture partnership with Old Mutual Life Assurance Company for financing a feasibility study for the development of backbone infrastructure for the Masuwe Special Economic Zone, measuring 1 200 hectares.”

Old Mutual has lots of properties in all urban areas. It has shopping malls and high rise buildings across the country.

However, the Victoria Falls gig will become one of the biggest single investments in Zimbabwe and more importantly creating an offshore financial hub.

In the signed agreements, Old Mutual will develop the project in two phases. The first phase entails construction of bulk water supply systems for the entire Masuwe and development of internal water, sanitation, roads and storm water drains at an estimated total cost of US$120 million.

Phase 2 of the project will witness the development of the remaining 930ha at an expected cost of US$85 million. The project is expected to be complete in 24 months.

It is easy to understand why Old Mutual jumped at the project. The project is a simple money spinner and will churn out good profits.

Cabinet said: “The feasibility study appraisal indicated that the development project is viable, with an acceptable profit margin of US$57 696 447, which is 15,5% and 18,2% of gross development value and development cost, respectively.”

The financial group will have a free pass to construct a four-star hotel with a 5 000-seater conference facility, medical tourism facilities, a golf estate and a shopping mall on land which government will allocate. The project will also use green energy in the form of solar.

Government has further sweetened the deal by declaring Masuwe a special economic zone. This means it is exempt from many of the labour and tax laws that affect any other investor operating in Zimbabwe.

It should be restated that since Mthuli Ncube became Finance minister, he has been working hard to make Victoria Falls an offshore location or a tax haven like Monaco and Jersey Islands.

This will make it a playground for the rich and famous who want to make super profits, pay the least in taxation and easily transfer their money to other destinations without cumbersome paperwork: The exact conditions that capital wants to feed its insatiable appetite without regard for the communities surrounding them.

The modus operandi of developing the New City in Harare is being replicated in Victoria Falls.

Cabinet says the status of a special economic zone would ensure that the project raises funds for self-financing. This will be another city run by a private company with zero accountability to anyone.

On a serious note, Zimbabwe is speeding into the territory of charter cities.

As a means to contain a fallout with citizens, Cabinet said the government will have “a shareholding on every portion of the land earmarked for development projects in Victoria Falls”.

The fact remains that the plan is opaque and has not been subjected to scrutiny by citizens’ representatives in Parliament. The tax incentives for the special economic zone should be debated and passed by Parliament. It should not be merely an Executive decision.

I cannot help but conclude by paraphrasing Naomi Klein in her book, The Shock Doctrine: The Rise of Disaster Capitalism.

Klein compellingly argues that in times of disaster when people are shocked, capitalists and governments introduce a crude dosage of capitalism.

In the last three years post the COVID-19 outbreak, Zimbabwe has privatised health, education and now even cities, while the people are still in shock.

Parliament should for once have a spine and scrutinise these deals where public land is being put into private hands for development of charter cities in an arbitrary manner.

The deals should be tabled in Parliament for debate, nothing short. Otherwise, we will wake up back in 1890 with a new version of the British South Africa Company running Zimbabwe.

Source: Old Mutual gets Vic Falls (25/03/2023)

See Also:

Victoria Falls Bits and Blogs (15th September 2019) Old Mutual to construct ‘massive’ hotel in Vic Falls.

Victoria Falls Bits and Blogs (2nd June 2021) Old Mutual, Govt strike Vic Falls land deal for new hotel project.

Victoria Falls Bits and Blogs (24th March 2023a) How a ‘Gold Mafia’ is looting Southern Africa, washing dirty cash.

Victoria Falls Bits and Blogs (24th March 2023b) Govt okays Victoria Falls SEZ.

 

Govt okays Victoria Falls’ SEZ

THE Government has okayed the development of the Masuwe Special Economic Zone in the resort city of Victoria Falls by the Mosi-oa-Tunya Development Company, which is expected to accelerate project implementation and promote tourism development in the greater Victoria Falls area.

Cabinet on Tuesday received and noted the update report on the Mosi-oa-Tunya Development Company Feasibility Study on the Development of the Masuwe Special Economic Zone the Minister of Environment, Climate, Tourism and Hospitality Industry, Honourable Nqobizitha Ndlovu.

Mosi-oa-Tunya Development Company (MOTDC) is a special-purpose vehicle that was mandated to spearhead the construction of a conference facility that hosted the United Nations World Tourism Organisation General Assembly in 2013.

In August 2020, Cabinet broadened the mandate of the company to cover tourism infrastructure development in Victoria Falls.

“The company subsequently entered into a Joint Venture Partnership with Old Mutual Life Assurance Company for financing a Feasibility Study for the development of backbone infrastructure for the Masuwe Special Economic Zone, measuring 1 200 hectares. The feasibility study appraisal indicated that the development project is viable, with an acceptable profit margin of US$57 696 447.00 which is 15.5 percent and 18.2 percent of gross development value and development cost, respectively,” reads the latest Cabinet report.

The project implementation shall be rolled out in two phases.

“Phase One entails construction of bulk water supply systems for the entire Masuwe Special Economic Zone and development of internal water, sanitation, roads and storm water drains at an estimated total cost of US$120 million. Phase Two will witness the development of the remaining 930 hectares at approximately US$85 million. The overall estimated project implementation period is 24 months,” read the report.

Cabinet was also informed that Old Mutual Life Assurance Company will construct a four-star hotel with a 5 000-seater conference facility; medical tourism facilities; a golf estate and a shopping mall on land which Government will allocate. The project will comply with all relevant environmental statutes, including the use of solar to provide clean energy.

The Masuwe area has been declared a Special Economic Zone in order to ensure that the project raises funds for self-financing. A Master Plan will be developed in order to guide the implementation of the project. The Government will maintain a shareholding on every portion of the land earmarked for development projects in Victoria Falls.

@NyembeziMu

Source: Govt okays Victoria Falls’ SEZ (22/03/23)

See Also:

Victoria Falls Bits and Blogs (15th September 2019) Old Mutual to construct ‘massive’ hotel in Vic Falls.

Victoria Falls Bits and Blogs (2nd June 2021) Old Mutual, Govt strike Vic Falls land deal for new hotel project.

Victoria Falls Bits and Blogs (26th March 2023) Old Mutual gets Vic Falls.

How a ‘Gold Mafia’ is looting Southern Africa, washing dirty cash

 Al Jazeera infiltrates large gold-smuggling rings and reveals a giant money laundering scheme.

An investigation by Al Jazeera has revealed some of Southern Africa’s largest gold-smuggling operations, exposing how these gangs help criminals around the world launder billions of dollars while aiding governments in circumventing international sanctions.

Gold Mafia, a four-part series by Al Jazeera’s Investigative Unit (I-Unit) based on dozens of undercover operations spanning three continents, and thousands of documents, also shows how government officials and businesspeople are profiting off the illegal movement of gold across borders.

The investigation reveals how billions of dollars’ worth of gold is smuggled every month from Zimbabwe to Dubai, allowing criminals to whitewash dirty money through a web of shell companies, fake invoices and paid-off officials.

The investigation also shows how Zimbabwean President Emmerson Mnangagwa’s government is systematically using gold smugglers to get around the chokehold of Western sanctions imposed on the country. The money laundering and gold-smuggling schemes involve one of Zimbabwe’s most influential diplomats, and go all the way up to the president and his circle.

The smugglers include millionaires, one of whom was accused of almost bankrupting Kenya through a similar, corrupt scheme also involving gold.

Gold smuggling, money laundering

Posing as criminals from China looking to launder over $100m, Al Jazeera’s undercover reporters managed to gain access to these smugglers and gangs.

Zimbabwe is a key player in these operations. Gold accounts for almost half — over $2bn — of the country’s exports. But the nation faces a strict international sanctions regime, and even though its gold trade is not in itself banned by the West, the broader strictures against Zimbabwe make it harder to export the precious metal through official channels.

However, using a web of companies and patronage from some of Zimbabwe’s most powerful individuals, smugglers have turned those constraints on trade into an opportunity to launder billions of dollars and help the government in Harare get around some of the consequences of sanctions.

The process is as simple as it is cunning: Criminals from around the world with large volumes of unaccounted cash can give that money to the Zimbabwean government, directly or through smugglers. The Zimbabwean government desperately needs US dollars since the county’s own currency has little international value following years of hyperinflation.

In exchange, launderers get clean, legitimate cash — from the sale of Zimbabwean gold — transferred to their bank accounts.

‘Good washing machine’

One of the smuggling operations the I-Unit encountered was led by Uebert Angel, Zimbabwe’s ambassador-at-large to Europe and the Americas. Angel was appointed personally by Mnangagwa with the responsibility of securing global investments for Zimbabwe, and is one of the country’s most influential diplomats.

Angel, who is also a prominent pastor, works with his deputy, Rikki Doolan. The duo made an offer to Al Jazeera’s undercover reporters that Angel could use his diplomatic cover to smuggle dirty money into Zimbabwe. That cash would then be used to purchase Zimbabwean gold with the help of Henrietta Rushwaya, president of the country’s mining association and a niece of Mnangagwa.

“It’s a good washing machine, right?” Doolan said, a smile on his face, while speaking with Al Jazeera reporters.

Angel and Doolan repeatedly claimed that the country’s president was on board with their plans. Angel had another laundering idea too: He proposed using the unaccounted money to build a hotel near Victoria Falls, a popular tourist attraction in Zimbabwe.

‘It’s very clean that way’

If access to power is the currency that Angel and Doolan peddled, gold is the calling card of a string of — at times rival — smuggling operations.

One of the gangs is run by Kamlesh Pattni, a businessman who in the 1990s was accused of pocketing hundreds of millions of dollars belonging to the Kenyan exchequer through a gold smuggling scheme. He was charged but never convicted. Al Jazeera’s undercover operation shows that Pattni is now involved in a similar scam in Zimbabwe, exporting gold to Dubai and then laundering both the money and the precious metal.

Pattni’s biggest competitor, a gold smuggler named Ewan Macmillan, also offered to help launder money for Al Jazeera’s reporters. Like Pattni, Macmillan, uses a group of couriers to transport hundreds of kilos of gold per week from Zimbabwe to Dubai, where it is then laundered through a web of companies and false invoices. Central to Macmillan’s operations is his business partner Alistair Mathias, who advises clients on how to cleanse their dirty cash.

Finally, Al Jazeera obtained details of how Simon Rudland, one of Zimbabwe’s richest men, launders money through both Zimbabwean and South African companies. Rudland is the owner of Gold Leaf Tobacco, one of southern Africa’s biggest cigarette brands, especially on South Africa’s black market.

These smuggling gangs have official licenses from Zimbabwe’s central bank that allow them to sell the country’s gold in Dubai, documents accessed by Al Jazeera show. They are expected to return the proceeds from those sales back to the central bank.

Instead, Pattni, Macmillan and Matthias have a well-oiled money laundering mechanism in place. They told Al Jazeera’s undercover reporters to set up shell companies in Dubai that would serve as a front for gold trade. The legitimate money earned from the sale of Zimbabwean gold in the emirate would be transferred to the bank accounts of these shell firms. And the smugglers would instead carry the dirty cash back with them to Harare, where they would deposit it with the central bank.

“So, it’s very clean that way,” said Mathias, Macmillan’s partner.

When asked about the findings of Al Jazeera’s investigations, Pattni said no allegation of criminal wrongdoing had been upheld against him in Kenya. He denied involvement in any kind of money laundering, as well as employing anyone to smuggle cash or offering to deal with funds he knew originated from illegal sources. He said that when he met with our undercover team, he thought he was meeting with an investor who wanted to sell a stake in hotel businesses and “to divest of a portfolio in China into gold buying and mining in Zimbabwe”.

Alistair Mathias denied that he designed mechanisms to launder money and said that he had never laundered money or traded illegal gold. He told us he had never had any working relationship with Ewan Macmillan.

Rudland told Al Jazeera that all allegations against him were false and formed part of a smear campaign by an unidentified third party. He described himself as “a strong businessman … competing against the greedy and the envious”. He denied any involvement in the sale of illicit cigarettes, in gold or other smuggling and in sanctions busting.

Gold Leaf Tobacco, Rudland’s company, said that it emphatically denied any involvement, past or present, in money laundering, the trade in illegal gold or related matters.

The Reserve Bank of Zimbabwe told Al Jazeera that it takes the issues of money laundering and illicit trade very seriously and will not participate, directly or indirectly, in such activities.

Mnangagwa, Macmillan, Angel, Doolan, Rushwaya and other parties featured in this article did not respond to Al Jazeera’s inquiries.

Over the course of the coming weeks, the Gold Mafia series will reveal more on these characters, how they work and how they are using one of the world’s most-wanted commodities – gold – to enrich themselves, while impoverishing a nation.

Source: How a ‘Gold Mafia’ is looting Southern Africa, washing dirty cash (23/03/2023)

See also:

Victoria Falls Bits and Blogs (6th February 2023) Victoria Falls City Council in ultimatum tiff with Wild Horizons.

Victoria Falls Bits and Blogs (24th March 2023) How a ‘Gold Mafia’ is looting Southern Africa, washing dirty cash.

Victoria Falls Bits and Blogs (6th April 2023) Zanu PF-linked gold baron loses land tussle.

Victoria Falls Bits and Blogs (30th April 2023) Mnangagwa ally suffers another Victoria Falls blow.

Victoria Falls Bits and Blogs (16th May 2023) FIU unfreezes accounts of ‘Gold Mafia’ suspects.

Cabinet okays Falls four-star hotel, conference centre. . . Golf estate, shopping mall also earmarked

 A multi-million dollar four-star hotel and a 5 000-seater conference centre is set to be constructed in Victoria Falls after Cabinet approved the implementation of the Masuwe Special Economic Zone project following a feasibility study that found the scheme to be highly profitable.

Under the same project, medical tourism facilities, a golf estate and a shopping mall will be constructed in the area.

Victoria Falls is one of the country’s top tourism destinations due the water falls, one of the world’s seven wonders and the proximity to Hwange National Park.

Environment, Climate, Tourism and Hospitality Industry Minister Nqobizitha Mangaliso Ndlovu yesterday briefed Cabinet on feasibility study progress that was made in the development of Masuwe Special Economic Zone by the Mosi-oa-Tunya Development Company.

Briefing the media after the Cabinet meeting yesterday, Information, Publicity and Broadcasting Service Minister Monica Mutsvangwa said findings from the feasibility study have proven that the project is viable.

She said the Mosi-oa-Tunya Development Company (MOTDC) is a special purpose vehicle which was mandated to spearhead the construction of a conference facility which hosted the United Nations World Tourism Organisation General Assembly in 2013.

Minister Mutsvangwa said in August 2020, Cabinet broadened the mandate of the company to cover tourism infrastructure development in Victoria Falls.

She sida a feasibility study was conducted and it has been proven that it can generate over US$50 million in profits.

“The company subsequently entered into a Joint Venture Partnership with Old Mutual Life Assurance Company for financing a Feasibility Study for the development of backbone infrastructure for the Masuwe Special Economic Zone, measuring 1 200 hectares,” she said.

“The feasibility study appraisal indicated that the development project is viable, with an acceptable profit margin of US$57 696 447 which is 15,5 percent and 18,2 percent of gross development value and development cost, respectively.”

Minister Mutsvangwa said Government will implement the project in two phases.

“Phase One entails construction of bulk water supply systems for the entire Masuwe Special Economic Zone and development of internal water, sanitation, roads and storm water drains at an estimated total cost of US$120 million,” said Minister Mutsvangwa.

“Phase Two will witness the development of the remaining 930 hectares at approximately US$85 million. The overall estimated project implementation period is 24 months. Mosi-oa-Tunya Development Company moved to Victoria Falls in April 2022, and this is expected to accelerate project implementation and to promote tourism development in the greater Victoria Falls area.”

She said according to the plan, Old Mutual Life Assurance Company will construct a four-star hotel with a 5 000-seater conference facility; medical tourism facilities; a golf estate and a shopping mall on land which Government will allocate.

“The project will comply with all relevant environmental statutes, including the use of solar to provide clean energy,” she said.
Minister Mutsvangwa said Government will be the majority shareholder in the project.

“The Masuwe area has been declared a Special Economic Zone in order to ensure that the project raises funds for self-financing. A Master Plan will be developed in order to guide implementation of the project. Government will maintain a shareholding on every portion of the land earmarked for development projects in Victoria Falls,” said Minister Mutsvangwa. 

Source: Cabinet okays Falls four-star hotel, conference centre. . . Golf estate, shopping mall also earmarked (22/03/2023)

US$200 million Vic Falls tourism project comes alive

THE implementation of Masuwe special economic zone in Victoria Falls is well on course following the completion of a feasibility study by Mosi-Oa-Tunya Development Company, a Cabinet Minister has said.

In a post-Cabinet media briefing yesterday, Information, Publicity and Broadcasting Services Minister, Senator Monica Mutsvangwa, said the project will be implemented in two phases.

“Phase One entails the construction of bulk water supply systems for the entire Masuwe Special Economic Zone and the development of internal water, sanitation, roads and storm-water drains at an estimated cost of US$120 million,” she said.

“Phase Two will witness the development of the remaining 930 hectares at approximately US$85 million.”

Minister Mutsvangwa said the project, which is expected to be completed within two years, is meant to boost tourism activities in the area.

Meanwhile, Old Mutual Life Assurance is set to construct a 4-star hotel in the same zone.

“The nation is further being informed that Old Mutual Life Assurance Company will construct a 4-star hotel with a 5 000-seater conference facility, medical tourism facilities, a golf estate and a shopping mall on land which Government will allocate,” said Minister Mutsvangwa.

“The project will comply with all relevant environmental statutes, including the use of solar to provide clean energy.”

Source: US$200 million tourism project comes alive (22/03/2023)

See Also:

Victoria Falls Bits and Blogs (15th September 2019) Old Mutual to construct ‘massive’ hotel in Vic Falls.

Victoria Falls Bits and Blogs (2nd June 2021) Old Mutual, Govt strike Vic Falls land deal for new hotel project.

Victoria Falls Bits and Blogs (24th March 2023a) How a ‘Gold Mafia’ is looting Southern Africa, washing dirty cash.

Victoria Falls Bits and Blogs (24th March 2023b) Govt okays Victoria Falls SEZ.

Victoria Falls Bits and Blogs (26th March 2023) Old Mutual gets Vic Falls.