Zim GBC News | Business Reporter
The Zimbabwe Anti-Corruption Commission (ZACC) is facing calls to launch an urgent investigation into RioZim Limited, following allegations of large-scale financial fraud, money laundering, and asset stripping at one of the country’s oldest mining houses.
In a detailed criminal complaint dated 24 September 2025, the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has accused the company of a systemic looting scheme involving the diversion of revenues into private accounts, the secret disposal of mining assets, and the use of shell companies to disguise transactions.
According to the union’s General Secretary, Justice Chinhema, the alleged crimes have defrauded minority shareholders, workers, and the state.
“Funds generated from RioZim’s trading activities were allegedly channelled through accounts belonging to Rio Gold (Private) Limited, raising serious questions about transparency and disclosure to ZIMRA,” Chinhema stated in the complaint.
The union alleges that after the Zimbabwe Revenue Authority (ZIMRA) garnished RioZim’s bank accounts, the company began using alternative accounts, including one at CABS under the name Rio Gold (Private) Limited, to receive and redirect company income.
ZDAMWU also claims RioZim illegally sold coal claims from its Sengwa Colliery operations three months after the Ministry of Mines cancelled its special grant.
“This behaviour constitutes a serious offence as it undermines government authority,” the union warned, adding that the move was concealed from both contracting parties and regulators.
The proceeds from these sales, the union says, cannot be traced.
Further allegations point to the sale of the company’s One Step Mine, where only a fraction of the proceeds were allegedly disclosed to stakeholders and tax authorities. The union described this as a deliberate effort to defraud minority shareholders, the investing public, and ZIMRA.
The complaint also highlights the registration of “unrelated entities” under false pretences, allegedly used to funnel money out of RioZim.
One such entity, Takaoma Investments (Private) Limited, is cited as a conduit for undeclared transactions disguised as loans.
Chinhema’s letter raises concerns over past police investigations that were closed under questionable circumstances, suggesting possible interference.
Emphasizing the national significance of the case, Chinhema said,
“This matter is of national importance. The alleged looting at RioZim affects not only its employees but the entire investing public and the credibility of Zimbabwe’s capital markets.”
The union argues that the alleged corruption has precipitated RioZim’s collapse from a blue-chip company to near insolvency, threatening thousands of jobs and eroding investor confidence in Zimbabwe’s mining sector.
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