COMPLAINT TO The South African Institute of Chartered Accountants (SAICA)

The Chairman
ICAZ,
The South African Institute of Chartered Accountants (SAICA)
Capetown

27 May 2011


RE - CORRUPTION,FRAUD AND ABUSE OF OFFICE LETTER OF COMPLAINT TO The South African Institute of Chartered Accountants (SAICA)
AGAINST MR REGGIE SARUCHERA OF GRANT THORNTON CAMELSA ZIMBABWE

I would like to lodge an official complaint against a Member of The South African Institute of Chartered Accountants (SAICA) Mr Reggie Saruchera Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International on the corrupt and incompetent manner in which he handled the Liquidation of ENG Investments P/L. I would like the Institute of Chartered Accountants of Zimbabwe to investigate this and possibly review membership of Mr Saruchera and CAMELSA .I have reason to believe Mr Saruchera has violated The South African Institute of Chartered Accountants (SAICA) Charter and the Chartered Accountants Act under Zimbabwean law.


He conducted himself in a manner likely to bring the ICAZ into disrepute and make your esteemed organization subject to endless ridicule. It is my humble submission that Mr Saruchera’s membership of The South African Institute of Chartered Accountants (SAICA) be suspended pending the results of an investigation on his fraud, corruption and general dishonesty given how he scandalously handled the liquidation of ENG assets and abused his office by misleading the Minister of Justice to Specify me for 7 years only to be found innocent after all my assets had been stripped by Mr Saruchera.

A - Just to highlight his incompetence he sold my personal house number 17 Chishawasha Road, Chishawasha Hills, Umwinsdale Harare when he didn’t have Authority and whilst leaving Company assets which he later said were in excess to liabilities. If he was honest and competent he should have self Company assets first and if there was a shortfall he could then have gone after personal assets. But due to his corrupt nature ,incompetence and vindictiveness he chose to make me homeless by selling my home and residence leaving me homeless.

B - In addition Mr Reggie Saruchera Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International is at the centre of my dispute with Interfin Banking Corporation due to his corrupt and incompetent handling of the ENG liquidation. In particular his disposal of 309 million Century Holdings shares which we bought for Z$ 35 billion (then equivalent to approximately US $ 17.5 million ) and selling those shares for Z$ 2.9 billion ( then approximately equivalent to US $ 1,5 million).He sold the shares creating a loss of Z$ 32 billion (approximately $ US 16 million).This transaction had all hallmarks of corruption, insider trading and incompetence all rolled into one which forced me to initiate high court action HC 6244-04 . I have attached a copy of HC -6244 -04 which fully describes the fraud and corruption engineered by Mr Saruchera. This is totally unbecoming for a Chartered Accountant to be so blatantly corrupt and fraudulent when he had a fiduciary duty to protect all stakeholder interest. He totally ignored this duty and embarked on mission to line his pockets and in unjust self enrichment schemes selling assets at under priced levels to his relatives, friends and cronies.

Brief Back Ground
In late 2003 my business partner and myself were arrested on allegations of economic crimes which we were later cleared of resulting in my De-specification on 29 April 2011. In order for us get bail we secured the creditors by placing ENG Capital under voluntary liquidation. We and First Mutual Life the biggest creditors agreed on Mr Reggie Saruchera who was to protect our Interest and those interests of the creditors .A consent order was granted on the proviso that he was supposed to work in consultation with all stakeholders since he had been appointed with our consent under High court cases HC 244-04 and HC 145 - 04.


Mr Saruchera as a member of The South African Institute of Chartered Accountants (SAICA) had a fiduciary responsibility to act prudently, honestly and diligently. We all assumed that being a Chartered Accountant accredited to Institute of Accountants of Zimbabwe ( ICAZ) Mr Saruchera would act competently, professionally and reasonably. We were very disappointed by his level of incompetence, unprofessionalism ,unreasonableness and general corrupt conduct on how he handled the ENG Capital Investments liquidation.

In the first instance Mr Saruchera started by selling off ENG Assets before even verifying the Company’s liabilities and assets. He did not even construct a basic Trial Balance to guide the process and he started to sell assets hap-hazardly in a corrupt manner least expected of a man who claims to be a Chartered Accountant under the Institute of Chartered Accountants of Zimbabwe. Even an inexperienced book keeper would know that before selling assets you need to secure them and verify all claims before deciding what to sell and at what price.

1 - He sold assets which he didn’t have authority or permission to sell. We suspect he was getting kick backs from his connections who were getting these assets at completely unrealistic prices.

2 - He sold our personal assets even though he had not exhausted Company assets which he later on surrendered saying they were in excess to creditor requirements.

3 - He was cherrying picking our personal assets motivated by greedy, corruption and envy and selling these asset to his select connections whom we suspect were his friends, relatives and business associates.It appears his friends, relatives and business associates were directing him which assets to sell and at what price totally ignoring his fiduciary duties.

4 - For Example he sold my house number 17 Chishawasha Road ,Chishawasha to someone we have reason to believe is his close friend or relative yet he returned Allied Conveyors P/L and other assets to ENG Directors .Why would he sell my personal house leaving me homeless when he could have sold movable assets such as Allied Conveyors. Such actions only prove his corrupt and incompetent conduct which is totally unbecoming of a man who is supposed to be a Chartered Accountant in good standing with ICAZ.

5 - Once Mr Saruchera Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International was appointed Liquidator he took a very hostile and aggressive attitude towards us even though we had appointed him by consent to protect all stake holders. We agreed that the best way was to negotiate share swaps with creditors and give them shares which we owned in various companies instead of selling the shares because the share market was depressed. Our biggest creditor FML and others had agreed to get shares instead of cash in particular our shares in Century Bank were bought at a cost of $ 35 billion and were valued even higher since they were a controlling stake in a Bank

6 - We heard Rumours that Century Shares were being sold and we asked Mr Saruchera who initially denied the rumour. After a few days we then read in the newspaper that Mr Saruchera had sold 309 million CENTURY shares .Our lawyer then wrote to him seeking clarification on why he had sold the shares since he did not have permission to sell the shares and also since Creditors had agreed to receive shares instead of cash payments. We wrote to ZSE and to Fidelity asking for identity of buyer and seeking investigation because we suspected Mr Saruchera acted corruptly to sell the shares at 2,9 billion when we had bough the shares for $ 35 billion ( US17 $ million) (causing a loss of $ 32 billion or US $ 16 million).He sold them through a special bargain which showed he had a side deal already since he was supposed to sell the shares thru normal market deal which sells to the highest bidder.

7 - Special Bargains are pure symptoms of corruption and kick backs especially when assets are supposed to be sold to the highest bidder to ensure that Creditors are fully paid and any surplus goes to the

8 - Our lawyers asked the ZSE to stop the deal and investigate. This was ignored. We then started legal proceedings of High court case HC 6244-04 Seeking to stop the sale of the shares and remove Saruchera from office. Once Saruchera saw our court action he then could not defend his decision which was clearly corrupt and unjustifiable by selling something bought for $35 billion for $ 2.9 billion. He started to intimidate us with specification threats and also verbally saying he had full powers from "authorities" to deal with us as harshly as he wanted.

9 - After we filed the motion to remove Saruchera from office and stop the sale of the shares Saruchera then applied to the Minister of Justice for myself ,my business partner Nyasha Watyoka and our Lawyer to be specified. We were all specified and Saruchera appointed Investigator. Saruchera then became Liquidator and Investigator at the same time placing him in position of conflict of interest. As a Chartered Accountant governed by the Institute of Chartered Accountants he ought to have known such a position was bound to create a corrupt outcome and bring the accountant proffession into ridicule and disrepute.

10 - Mr Saruchera was selling assets which he was supposed to investigate even though there was already court application HC 6244-04 to stop the sales and remove him from office. There was conflict of interest with liquidator being investigator he became the Police, Prosecutor, Witness and Judge all rolled into one creating a situation without any check as to the fairness of the work he was doing.

11 - Various laws and regulations were violated in the process of disposing our shares in the Bank .There was a general cloud of corruption, insider dealing ,incompetence which I outlined in my High court application Case HC 6244-04 seeking to remove Mr Saruchera from office as Liquidator since he had started by selling our assets without even verifying how much we owed to the creditors as is required by the law and general good corporate governance practice

12 - My lawyer then told me I was not safe since he had information that there were people who were prepared to eliminate me so that they can have full access to the ENG assets which I was resisting through court action. In fear I then fled Zimbabwe and tried to clear my name and clarify the ENG position.

13 - Mr Saruchera then continued to sell assets and he even sold my personal house number 17 Chishawasha Road, Chishawasha this (left me homeless) even though he had not finished selling ENG assets he took my personal house whilst leaving ENG assets such as Allied Conveyors which he later returned but he sold my house instead of ENG assets showing he was being ,malicious ,vindictive and corrupt as I suspect most assets were being sold to his connections .

14 - The bank was sold even though there was a court application HC 6244-04 to block it. Interfin and many other buyers before them were buying an asset that was already disputed. They failed to do their proper due diligence to verify the ownership dispute. They inherited Century/CFX bank and took over its assets and liabilities which included our claim. This is the nature of my dispute with Interfin Bank.

15 - Interfin Bank have always known the illegal and corrupt nature surrounding the sale of those shares and assumed all risk linked to these shares and that Financial Institution which is well known.

My court claim HC 6244-04 filed at the is well known and was well publicised such that when the Finance Bank of Zambia and Credit Suisse of Switzerland attempted to buy CFX Bank I told them about my claim and they did their own checks and verified the legitimacy of the claim. They stopped the transaction since my claim was proved to be legitimate. This proved Mr Saruchera had acted improperly since a reputable organization did their own due diligence and ascertained my claim and my main allegation that Mr Saruchera acted fraudulently, corruptly and devised an unjust self enrichment scheme.

It goes without saying that all other clients of Mr Saruchera and Camelsa Grant Thornton will also be fleeced and ripped of by this man who is masquerading as a chartered accountant.

Yours Sincerely ,

Gilbert Muponda
Contact
Phone - 1-647-994-5542
Email - gilbert@gmricapital.com
Face Book - http://www.facebook.com/GMRICAPITAL