Indian businessman Ashok Jain faces accusations of attempting to defraud the Zimbabwean government of over $100 million through a questionable ethanol plant proposal.
Documents obtained by this publication reveal a troubling pattern of exaggerated claims and financial inconsistencies in Jain’s proposal.
Representing NV Distilleries and Breweries, Jain initially approached then Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya with a Letter of Intent, proposing a broad-scale venture involving ethanol production, poultry feed, power generation, and fertilizer manufacturing. This proposal appeared to replicate a similar project by Greenfuel.
Jain, also associated with the arrest of Zimbabwe Miners Federation president Henrietta Rushwaya on fraud charges, made extensive demands in return for his proposed investment, including 6,000 hectares of land near a dam free of charge, tax exemptions on machinery imports, and government-covered construction costs for five years. Jain also sought a substantial line of credit, initially pegged at $100 million and potentially rising to $165 million, ostensibly supported by the Indian government.
Dated November 1, 2021, Jain’s letter claimed the project would create over 3,000 jobs and significantly contribute to Zimbabwe’s GDP. However, despite receiving provisional approval from the Zimbabwe Investment Development Agency (ZIDA) for a $125 million project, RBZ Governor Mangudya raised serious concerns about the proposal’s feasibility and financial foundation.
Mangudya identified gaps in the financing arrangements, including the absence of a formal credit agreement with India. He noted Jain’s claimed resources should eliminate the need for Zimbabwean government funding. ZIDA’s approval letter confirmed Jain’s pledged investment of $32,616,667 over three years, totaling $97,850,000. However, the absence of verifiable Indian credit left the proposed $125 million Standby Letter of Credit in limbo.
Adding to the controversy, Jain allegedly used a photo with President Emmerson Mnangagwa to intimidate locals and bolster his political influence. Minister Joram Gumbo, who arranged Jain’s meeting with Mnangagwa, has defended himself after revelations of Jain’s prior arrest in India for smuggling and reports of erratic behavior surfaced.
Jain’s dubious claim to be the third most influential figure in India’s Bharatiya Janata Party (BJP) has also cast doubt on his credibility, with Rajnath Singh holding that position.
Jain’s ethanol plant proposal, marked by inflated promises, questionable ethics, and financial ambiguity, failed to gain traction under the RBZ’s critical assessment, sparing Zimbabwe from a potential financial disaster.
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