Crimes and Courts Correspondent
Farai Taruvinga, the cash-rich Zanu PF MP for Insiza North and a prominent gold baron from Filabusi in Matabeleland South, has been ordered by the High Court to pay US$ 3,626,038 to gold buyer Shasha Richard Gomez. This amount reflects the current market value of 42,637.23 kg of gold that Taruvinga and his company, Trade Rivers Investments, owe Gomez’s firm, Yellow Carriage Investments.
Background
The legal action stems from a loan agreement where Yellow Carriage Investments provided Trade Rivers Investments with US$ 1.7 million in operating capital for mining activities leading up to 2021. The agreement stipulated that Trade Rivers would repay this amount through the delivery of gold concentrate, specifically 50,185.62 kg. However, by December 2021, Trade Rivers had only delivered 7,548 kg of gold, valued at US$ 401,940, leaving an outstanding balance of 42,637.23 kg.
Current Developments
Due to the significant increase in gold prices, the outstanding gold is now valued at over US$ 3.6 million. Despite this, Taruvinga and his fellow director, Sylvester Kamupangu, have reportedly failed to deliver the remaining gold or repay the debt, prompting Yellow Carriage to seek legal recourse.
Court Orders
The High Court summons, dated June 7, 2024, demands that Taruvinga and Kamupangu either deliver the outstanding gold concentrate or pay the equivalent amount in cash based on the current market rates as determined by the London Bullion Market Association.
Additionally, they are liable for a 10% collection commission on the amount owed, along with interest from the date of the summons until full payment is made.
This case highlights the complexities and financial stakes involved in the gold mining sector in Zimbabwe, particularly regarding contractual obligations and market fluctuations.
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