Former RBZ Boss Exposes Fraudsters in Valley Lodge Scam

Harare, Zimbabwe – Former Reserve Bank of Zimbabwe (RBZ) Governor Gideon Gono recently testified in court, detailing how suspected fraudsters, Clark and Beverly Makoni, allegedly seized control of his ZWL172 million company, Valley Lodge, in Manicaland. Gono revealed that the couple faces similar allegations concerning his other properties in Chivhu.

Testifying for the first time, Gono informed Magistrate Stanford Mambanje that his children introduced him to the Makonis in 2016. He then employed them to manage his family’s real estate projects.

“I entrusted them to manage a portfolio of over 15 properties in Chivhu, and in 2017, I expanded that trust to include our Mutare portfolio, which comprised Valley Lodge,” Gono stated. He noted a pattern, adding, “The same challenges that occurred in Chivhu are the same challenges we are facing in Mutare, and we are in the process of seeking to rectify the fraudulent activities done by the accused persons.”

Gono explained that the Makonis, through a fraudulent court process, blocked his access to Valley Lodge, leading to the arrest of his workers by police officers acting under the couple’s influence. “We later discovered that the police and the community were deceived by Makoni and they did not know that they have a fraudulently acquired order,” Gono asserted.

Gono clarified that he is the owner of Galwex Investments, the holding company for all issued shares in both Lizack Holdings and Valley Lodge. He acquired these shares from Costick Investments, represented by Ayoob Omar. While the businesses were sold to Galwex, the transfer was pending the completion of the purchase.

The Makonis’ primary mandate was to collect rentals and other occupancy-related income, deduct an agreed commission, and cover agreed expenses, with the remainder to be remitted to Gono monthly.

“The accused persons went for several months without remitting any income to me, and this prompted me to carry out some investigations in a bid to find out what was happening to my property, Valley Lodge (Pvt) Ltd,” Gono explained.

His investigation, conducted through his staff members George Mashonganyika, Lindiwe Sabeka, and Michelle Nongogo, uncovered significant irregularities. “I learned that the CR.14 of Valley Lodge (Pvt) Ltd and the signatories to ZB Bank had been corruptly changed by the accused persons without my knowledge as the sole shareholder of the company or that of the directors namely, Ayoob Omar and Mohamed Hussein Omar,” Gono testified.

He further emphasized, “The Boards of Lizack and Valley Lodge have not sat or resolved that there be a change to the directorship of the companies since 10 December 2008 as appears on the current and legit Valley Lodge CR14.” Gono reiterated that “any suggestion of ownership, lease or occupation by anyone other than nominees duly appointed by and representing myself, is false and fraudulent,” a position confirmed by an affidavit from Omar, the previous owner.

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Gono stated that he suffered an actual prejudice of ZWL137,296,500 due to unauthorized bank withdrawals by the Makonis, purportedly as salaries for themselves and their Ark Properties employees. He confirmed that “nothing was recovered except apologies from both Beverly and Clark, which apologies do not wash away the fraud committed by these two.”

He detailed a verbal agreement between himself and the Makonis, often involving Clark Makoni and his family, and communicated through a WhatsApp group. Gono estimates the prejudice at around US$100,000, emphasizing that as a retiree, he relies on these investments, and their interference causes him significant stress.

In January 2024, the Makonis approached Gono to apologize and proposed a repayment plan of US$50,000. Gono recounted that Clark Makoni brought his legal counsel, and he was represented by two legal firms during the drafting of this proposal. They even took photos after what Gono described as “smoking peace pipe.” However, Gono was surprised when Beverly Makoni later refused to sign the proposal, leading to the current court proceedings.

Ayoob Omar, the former owner of the property, also testified against the Makonis, affirming that he sold the company only to Gono and not to the accused couple.

Magistrate Mambanje has postponed the matter to July 11, when Eric Chacha, the investigating officer from the Zimbabwe Anti-Corruption Commission (ZACC), is expected to testify.

The State alleges that the Makonis orchestrated a sophisticated scheme, beginning with the forgery of a CR14 form. This document, central to the prosecution’s argument, purportedly appointed Clark Makoni as director and company secretary of Valley Lodge, with Beverly Makoni designated as his deputy. Further accusations include the couple’s alleged misrepresentation to the bank, where they falsely claimed to be new shareholders in an attempt to change signatories to Valley Lodge’s bank accounts. The prosecution firmly contends that through these fraudulent acts, the Makonis illicitly took over Gono’s company, gained unauthorized access to its bank accounts, and ultimately embezzled the staggering ZWL172 million.