U.S.-sanctioned businessman Kudakwashe Tagwirei could face further controversy after Zimbabwe’s National Treasury announced that its $250-million stake in Kuvimba Mining House Limited was a donation, contrary to an earlier statement.
Two weeks ago, the government stated that the stake was acquired from a company linked to a tycoon and that it had a controlling stake in the firm, Bloomberg Quint reported.
The $250-million stake in Kuvimba was donated to support the government in its efforts to compensate White farmers, whose lands were forcefully seized two decades ago by the previous administration.
Tagwirei, who was recently the subject of an investigative report accusing him of using complex corporate structures and preferential treatment to loot Zimbabwe’s economy, is associated with the Kuvimba Mining House.
Although the government did not say who donated the stake, it was held until late last year by Sotic International Limited, a company linked to Tagwirei.
In January, Zimbabwe announced plans to use profits from a mining venture to help settle a $3.5-billion compensation claim from White farmers who were evicted by former President Robert Mugabe.
The move led to a dispute that ruined Zimbabwe’s bilateral relations with Western countries and global lenders, earning it both U.S. and EU sanctions. Last month, Zimbabwe made its first compensation payment.
The Kuvimba Mining House transferred $1 million to farmers, while the government asked for an extension in the payment of the full $3.5 billion that it agreed to a year ago.
