HARARE – Ex-Hwange Colliery Company (HCC) managing director Fred Moyo has been arrested over an alleged $2 million fraud at Oryx Mine (Private) Limited (Oryx), businessdaily can reveal.
Sharon Musendo, the police’s Criminal Investigations Department (CID) press officer, yesterday confirmed the development.
“He was arrested on fraud charges,” she said, adding Moyo was still in custody, while investigations were still underway.
With the former HCC boss detained at Rhodesville Police Station on Monday night, he was also taken to the CID’s Harare headquarters for questioning yesterday.
According to sources, Moyo’s woes arise from a botched Oryx equity deal and in which his consortium allegedly used the Kadoma-based gold miner’s assets to borrow from ZB Bank Limited without fulfilling requisite procedures.
Under the envisaged transaction, Moyo’s group – including three other investors – had undertaken to inject a significant amount of money into Oryx in return for shareholding, but the deal fell through due to delays by the consortium.
However, it is believed that they proceeded to use the medium-sized mine’s assets as security for loans from the bank, which has now given rise to the current dispute.
Moyo, a majority shareholder in Lennox Mine, also faced a possible rap from environmental authorities over an alleged chemical leak at his Zvishavane-based gold miner.
However, the former HCC boss has strongly denied the charges, saying the alleged cyanide leak was “nothing more than water washing off a trial mining exercise” and which was reaily dealt with by his South African consultants.
A veteran miner and ex-board member of the Zimbabwe Iron and Steel Company, now New Zimsteel as well as the Zimbabwe Mining Development Corporation, Moyo left the coal giant HCC in September 2012 at the expiry of his contract.
He had been appointed MD of the multi-listed HCC in July 2007 and was with the company for close to 30 years.
A former Anglo Coal South Africa senior staffer, Moyo has also worked for such companies as London-listed Bindura Nickel Corporation.
In his elaborate career, he has also served Shabanie and Mashaba Mine Holdings.
And after leaving HCC, he has concentrated on private business, with his company Lennox being declared compliant with the country’s indigenisation law last week. – Eric Chiriga, Business Editor