South African tycoon under scrutiny for planning hostile take-over of local companies

SOUTH AFRICA business tycoon Martin Simmons has made a dramatic U-Turn and has unreservedly withdrew false allegations he had levelled against top lawyer Munyaradzi Nzarayapenga, in a bid to elbow him out of a diamond beneficiation company in which both parties are shareholders, Zim Morning Post can reveal.

Zim Morning Post understands that Simmons, Nzarayapenga and one Babra Mutambanengwe all have shares in Kenako Diamonds.

Pursuant of his plan of mudslinging and attempting to elbow out local partners, Simmons, filed allegations against Nzarayapenga to the police and Law Society of Zimbabwe but the burden to prove compelled him to withdraw the charges.

In an affidavit seen by this publication, Simmons wrote to both the police and LSZ registering his intention to withdraw the false allegations and categorically stated that all the company books and his relationship with his partners was all in order.

“I had filed a criminal complaint with the CID CCD ref (NR) dr122/03/020) against Munyaradzi Nzarayapenga.

I wish to withdraw that complaint fully and unequivocally absolve Mr Munyaradzi Nzarayapenga of any criminal conduct whatsoever.

“I have knowledge that my full investment is with the company recorded as a loan account in my favour. My financial interests are secure.

“There are no pending issues pending between us arising out of the investment or any other matter,” read part of the affidavit.

He further instructed his lawyers Mutuso, Taruvinga and Mhiribidi to communicate same in writing.

Simmons,who also has a record of murky gold deals,was  angling a hostile takeover on the basis of his US$400 000 investment.

“Simmonds has links in high offices and he has paid kickbacks in his efforts to have a hostile takeover of Kenako Diamonds, its well-orchestrated syndicate that also implicates some local dealers,” said our impeccable source.

Simmonds has a pending case in which he allegedly prejudiced businesswoman Rebecca Siziba of US$40 million using the same modus operandi of cooking unsubstantiated fraud allegations to his shareholders.

The figure was in respect of the amount of monthly gold production at their mine which was 20 kg per month at the material time.

Due to the prejudice, Siziba however, instructed her legal representatives to demand a payment of the equivalent of 40% of 1860kgs of gold basing on world price,

Both parties were partners in Bamslove Investments where Simmons came in as an investor and accused Siziba of fraud.

It later turned out there were flimsy allegations, according to records seen by this publication.

He was accused of creating a fictitious loan account with the help of his accomplice Barry Knight and used it to defraud company assets.

The was revealed in a letter of demand sent to Simmons by her lawyer Messrs VJ Mpofu dated April 2.

Both Nzarayapenga and Simmons could not be reached for comment at the time of writing.

Meanwhile, this matter has opened a can of worms on how cash rich investors come in as ‘good Samaritans’ and Nicodemusly try to grab the same company in complete violation of the Companies act.

This has been prevalent in the mining sector.