Gono Testifies in ZWL$172 Million Hotel Heist

By Takudzwa Tondoya

Former Reserve Bank of Zimbabwe (RBZ) Governor Dr. Gideon Gono took the witness stand in a high-profile fraud case involving ZWL$172 million and a Mutare-based hotel Valley Lodge leading to a postponement of the matter to July 11.

Testifying before the Harare Magistrates’ Court, Dr. Gono detailed how he fell victim to an alleged property scam orchestrated by Clark and Beverly Makoni, a couple he once trusted to manage his real estate portfolio.

“I met the Makoni’s in 2016 through my children who had recommended them to manage our family’s properties. They were entrusted with more than 15 properties in Chivhu and by 2017, I expanded their mandate to include the Mutare properties, including Valley Lodge,” Gono told the court.

The former central bank chief accused the Makoni’s of manipulating law enforcement and abusing the courts to wrongfully seize control of the property.

“We later discovered that the police and the local community had been misled by the Makonis, who used a fraudulently obtained court order,” Gono said recounting how his staff had been arrested at the instigation of the accused.

Dr. Gono clarified that Valley Lodge was held under Galwex Investments a company he owns which also holds all shares in Lizack Holdings.

While full transfer of the hotel’s ownership was still pending due to incomplete payments, the Makoni’s were tasked with collecting rentals, deducting a commission and forwarding the balance monthly.

Instead, Gono claims they pocketed the proceeds and blocked him from the premises.

He estimated his personal financial loss at around US$100,000.

“This is deeply distressing. I rely on these investments for income,” he said adding that nothing has been recovered to date apart from verbal apologies.

The Makoni’s had approached him to propose a partial repayment of US$50,000.

Also taking the stand was Mr. Ayoob Omar the previous owner of Valley Lodge who confirmed that the property had been sold directly to Dr. Gono not the Makonis.

Presiding Magistrate Stanford Mambanje postponed the matter to July 11 when Zimbabwe Anti-Corruption Commission (ZACC) Investigating Officer Eric Chacha is expected to testify.