A new multi-million-dollar gold scandal has rocked Zimbabwe’s Finance Ministry, unveiling an elaborate scheme involving illegal payments of nearly US$100 million to a mysterious company with close ties to Zanu PF elites, in clear violation of public finance laws.
Confidential government documents obtained by The NewsHawks reveal that Gaingrid Investments (Pvt) Ltd, a shadowy entity with no known track record, was awarded a massive contract to procure and sell gold on behalf of the state. The company is allegedly linked to Zanu PF MP and gold baron Pedzisayi “Scott” Sakupwanya, an ally of President Emmerson Mnangagwa.
This deal was overseen and executed not by the legally mandated Minister of Finance, but by Finance Ministry permanent secretary George Guvamatanga, raising serious legal and constitutional red flags. Critics are calling it one of the most egregious examples of state capture and abuse of public funds in Zimbabwe’s recent history.
The Scheme: A Briefcase Company, a Gold Deal, and a Suspicious Overpayment
The scheme was simple yet deeply corrupt. Gaingrid was engaged to buy gold from miners across Zimbabwe, delivering it to Fidelity Printers and Refiners, the state’s official bullion buyer. For this service, the company was promised a 5% incentive—a standard arrangement, but what followed was anything but.
Guvamatanga insisted that the government owed Gaingrid US$60 million. However, an agreement reached in September 2024 committed Treasury to pay US$8 million per month for 12 months, totaling a shocking US$96 million—a full US$36 million more than the original debt.
No explanation has been provided for the inflated repayment amount, which sources close to the matter say was deliberately padded to create “money for the boys”—kickbacks and bribes disguised as transaction costs.
“There’s method in the madness,” a source familiar with the deal told The NewsHawks, describing it as a calculated looting operation.
Ecobank at the Centre, Treasury Laws Flouted
Banking giant Ecobank Zimbabwe acted as the financial conduit, discounting Treasury Bills to release cash to Gaingrid. Documents show that Ecobank agreed to discount the US$60 million incentive down to US$20 million, yet the government proceeded to pay nearly US$100 million, a discrepancy that officials have failed to justify.
This murky arrangement was confirmed in multiple letters from both Guvamatanga and a senior ministry economist, Itai Munaki, addressed to Ecobank Managing Director Moses Kurenjekwa.
“The ministry undertakes to irrevocably pay Gaingrid monthly installments of at least US$8 million,” Guvamatanga wrote on 4 September 2024, effectively committing taxpayers’ funds without ministerial or parliamentary oversight.
This is unlawful, according to financial and legal experts. The Public Finance Management Act stipulates that only the Minister of Finance is authorized to borrow money or approve the use of Treasury Bills—not a permanent secretary.
A System of Patronage and Pillage
Even more troubling is the opaque nature of Gaingrid Investments itself. Company records yield no public ownership or accountability, reinforcing claims that it is a “briefcase company” fronting for powerful political interests.
Blessed Geza, a war veterans’ leader, has gone on record saying Gaingrid is directly linked to Sakupwanya, one of Zimbabwe’s most conspicuous gold dealers and a close Mnangagwa confidant.
“This is corruption dressed up as a gold scheme,” said former Finance Minister Tendai Biti, slamming the transaction as “grand-scale looting.”
Not an Isolated Case: Pattern of Abuse Emerges
The Gaingrid scandal follows closely on the heels of another shady US$20 million government guarantee issued to Valley Seeds, a company connected to Zimbabwe’s controversial Command Agriculture programme. In that case, Guvamatanga again bypassed legal channels, guaranteeing loans and repayments without ministerial approval.
As Zimbabwe reels under a crushing economic crisis—with soaring inflation, currency collapse, and widespread poverty—the Guvamatanga-Gaingrid deal symbolizes everything wrong with elite-driven plunder of public resources.
“This is not just corruption. It’s treasonous,” a Harare-based lawyer told The NewsHawks. “They are literally stealing from the people with the stroke of a pen.”
Repeated attempts to contact George Guvamatanga for comment were unsuccessful, as his phone remained unreachable.
As the public absorbs the staggering implications of this scandal, pressure is mounting for a full parliamentary probe and criminal investigations. Meanwhile, millions of dollars continue to leave the Treasury’s coffers, enriching a few while the majority of Zimbabweans struggle to survive.
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