Businessman in US$663k ‘Independence Day fund’ Scam

By Tinomudaishe Muzanenhamo

A Harare businessman has appeared in court accused of extortion, fraud and money laundering after allegedly convincing a pharmaceutical company director to transfer more than US$663 000 for what he claimed were Independence Day celebrations.

Joseph Kanyekanye (58) appeared before the Harare Magistrates’ Court where he applied for bail before magistrate Ruth Moyo.

According to court papers, the complainant is the director of a Harare-based pharmaceutical company while Kanyekanye is identified as the director of Alliance Holdings.

Prosecutors allege that Kanyekanye told the complainant the money was urgently needed by senior officials of the ruling Zanu-PF party to prepare for Independence Day celebrations held in Maphisa.

He allegedly claimed that President Emmerson Mnangagwa had approved the release of the funds.

The court heard that Kanyekanye allegedly pressured the complainant into transferring US$663 480.75 insisting the payment was urgent.

State papers further allege that the complainant was threatened with unspecified consequences if he failed to comply or reported the matter to authorities.

Prosecutors say Kanyekanye allegedly convinced the complainant that making the payment would improve the company’s chances of securing favourable consideration in future pharmaceutical supply deals.

The money was allegedly transferred from the company’s trust account into a CBZ Bank account belonging to a firm identified in court as Jemina Capital.

However, investigators later established that the claims were false and that no government ministry or department had authorised the collection of money for Independence Day preparations, according to the State.

Prosecutors also allege that part of the money was later withdrawn and shared among the accused and associates in an attempt to conceal its origin, forming the basis of the money laundering charge.

Evidence expected to be presented in court includes bank transaction records, WhatsApp exchanges between the complainant and the accused, as well as video footage said to link Kanyekanye to the transactions.

Kanyekanye was remanded in custody pending the determination of his bail application.