Cash-rich Zanu PF Insiza North MP Farai Taruvinga, a Filabusi gold baron in Matabeleland South province, has been taken to pay gold buyer Shasha Richard Gomez 42 637.23kg worth US$1 298 060 at the material time in 2021, but now US$3 626 038 at the current world markets bullion prices, The NewsHawks has established.
High Court summons, dated 7 June 2024, have been served on Taruvinga, together with his fellow director Sylvester Kamupangu at their company Trade Rivers Investments (t/a Progress Mine), saying they owe the Bulawayo-based Gomez and his firm Yellow Carriage Investments 42 637.23kg.
At the material time in 2021, the gold was worth US$1.3 million, but now it is valued at US$3.6 million.
The plaintiff (complainant) in the High Court case – HCBC787/24 – is Yellow Carriage Investments owned by Gomez, while the defendants are Trade Rivers Investments, Taruvinga and Kamupangu.
The case arose after Yellow Carriage Investments loaned Trade Rivers Investments (Progress Mine) US$1.7 million operating capital for its mining activities in the period leading up to 2021.
The business arrangement and agreement was that Trade Rivers (Taruvinga and Kamupangu) would repay Yellow Carriage (Gomez) the US$1.7 million working capital with gold concentrate amounting to 50 185.62kg.
However, Trade Rivers only delivered 7 548kg of gold to the Yellow Carriage by December 2021. The 7 548kg of gold was valued at US$401 940 at the time, leaving an outstanding balance of 42 637.23kg, equivalent to US$1 298 060.
The same gold is now worth US$3.6 million and Trade Rivers and its directors are unwilling or unable to pay, or both.
This led Yellow Carriage to issue summons to recover its money either as cash or gold.
“The plaintiff (Yellow Carriage) is a duly licensed gold-buying entity. The 1st defendant (Trade Rivers) is a duly registered company operating a gold mine in the district of Filabusi.
“The 2nd defendant (Taruvinga) the 3rd defendant (Kamupangu) are the directors of the 1st Defendant,” reads the summons.
“During the period leading up to and including 2021, plaintiff extended various substantial amounts of money on credit to the defendants totalling US$1 700 000.
“It was a material term of the agreement between the parties that the defendants would repay the amounts so loaned through the delivery of gold concentrate to the plaintiff. The plaintiff would then offset the amount due and pay the defendants the balance. Plaintiff made payment to the defendants and the latter did not deliver the corresponding gold concentrate.”
However, Taruvinga, Kamupangu and their company initially failed and are now refusing to pay: deliver the outstanding 42 637.23kg of gold concentrate, forcing Yellow Carriage to go to court.
“Accordingly, plaintiff is entitled to the delivery of 42 637.23 of gold concentrate as per agreement. Wherefore, the plaintiff’s claim against the defendants jointly and severally the one paying the others to be absolved is for,” it reads.
The settlement should be in gold or United States dollar equivalent as valued by the London Bullion Market Association.
The London bullion market is a wholesale over-the-counter market for trading of gold, silver, platinum and palladium.
“Delivery to the plaintiff of 42 637.23kg of gold concentrate, alternatively, if the defendants fail to deliver the 42 637.23kg of gold concentrate to the plaintiff that same be jointly and severally ordered to pay the monetary equivalent in United States dollars of 42 637.23kg of gold concentrate as valued by the London Bullion Market Association and confirmed by Fidelity Printers and Refinery Zimbabwe,” summons reads.
Taruvinga and his colleague have also been ordred to 10% collection commission.
“An order directing the defendants jointly and severally to pay a 10% collection commission on the amount above (42 637.23kg). Interest on the above sum at the prescribed rate of interest from the date of issue of summons to the date of full and final payment. Costs on a legal practitioner- client scale.”
