Tagwirei Appointed Minister: State Capture Complete?

Story By Staff Reporter

The appointment of Kudakwashe Tagwirei as Minister of Economic Development is a new low, even by the standards of the self-proclaimed Second Republic.

First, it shows breathtaking arrogance on the part of Mnangagwa. It signals that he considers himself untouchable and is oblivious to the national mood and the national interest.

Moreover, we have consistently argued that this regime runs on looting, extraction and rent, and nothing else. This mafia mentality has driven the 2030 Agenda. As a result, it is pushing the country towards a point of no return through the relentless pursuit of the ill-fated Constitutional Amendment No. 3.

Ultimately, the appointment blurs the line between power and private enrichment. It personifies state capture, the Guptarisation of the Republic.

The Archbishop of Corruption

Critics describe Tagwirei as the kingpin of massive extraction. His shadow, they say, touches every corridor of looting: fuel, mines, construction, tenders, banks, supermarkets and even churches.

In addition, he has a close relationship with Treasury. He has received more Treasury Bills (TBs) than anyone else, and on conflict of interest alone he cannot serve as a government minister.

Command Agriculture

Tagwirei was a major beneficiary of Command Agriculture. The Public Accounts Committee, which I chaired, investigated his companies from 2015 to 2018. We found that they received over US$1 billion, mostly in Treasury Bills. However, we could not find a single bag of maize or fertiliser delivered in return. Nobody has ever answered those questions.

The US$360 million Treasury Bill

On 20 January 2019, he received a US$360 million Treasury Bill. Shortly afterwards, SI 33 of 2019 converted all foreign obligations to local currency. His TB, however, escaped the haircut.

Then, in June and July 2019, he flooded the market with that US dollar bill, and the RTGS system collapsed. The RBZ froze accounts and the IMF raised concerns. After that, nothing happened.

Kuvimba Mining

He has also benefited from numerous other Treasury Bills, and the Minister of Finance has never given a comprehensive account of them. Most notorious is the US$1.9 billion payment for 35% of the shares in Kuvimba Mining, made when the company was placed under the Mutapa Fund. Treasury paid out this TB without valuations or justification. Like Command Agriculture, it deserves a criminal docket of its own.

A Vice-Like Grip on Fuel

Tagwirei controls Zimbabwe’s US$4 billion fuel industry. For example, the government awarded him the Dema diesel plant contract, and ZESA had to buy power at 34 US cents per kWh, while Eskom imports cost 12 cents. The public paid the difference.

Furthermore, millions of litres of duty-free diesel meant for Dema were diverted and sold on the market. Consequently, Zimbabweans pay some of the highest fuel prices in the region, and a large part of that price is levies and rents that, critics allege, end up in Tagwirei’s pockets.

A Pattern That Demands Investigation

Tagwirei has also been linked to land and title deeds, First Mutual Life shares, and shares in two major banks. These claims need forensic audits, not political slogans. The audits should cover all TBs, Command Agriculture, Dema, fuel, Kuvimba, Mutapa, the Trabablas Interchange, roads and churches.

Placing him in a ministry responsible for the national coffers is a grave breach of public trust, and it brings the country into disrepute. Besides, the appointment itself is legally doubtful, because Constitutional Amendment No. 3 is contested. The courts must decide, since no one can wish away the Constitution by exercising power.

The Cattle Thief and the Herdsman

In Gandanzara village there lived a notorious cattle thief named Faranisi. He stole goats, cattle and sheep, and he terrorised the villagers.

One day, headman Zvaendwa of the Nyati totem appointed Faranisi to guard the village cattle. Naturally, the village erupted. The people confronted Nyati and demanded that he remove Faranisi, because the cattle thief had been made the herdsman.

Therefore, we must not stay silent.

Cry, the beloved country. Cry.

Reporting based on original coverage by NewsHawks.