by Kenneth Chikanga and Independent Foreign Service
Johannesburg - Business Against Crime said that the arrest of maverick Zimbabwean businessman Mutumwa Mawere in Johannesburg this week would send a clear message to international investors that international crime syndicates would face the full wrath of the law if they used South Africa as a transit base for money laundering.
At the same time Zimbabwe's ambassador to South Africa, Simon Khaya Moyo, told Business Report that his government was brooking no holy cows in his country's anti-corruption drive to crack down on fraud and corruption, which cost millions of rand and damaged trade relations between Zimbabwe and South Africa.
Mawere was arrested on Tuesday afternoon in Sandton after an international warrant of arrest had been issued against him by the fraud section of the Zimbabwe police.
He appeared in the Randburg regional court on Thursday and was released on R50 000 bail to June 29, pending a decision on whether he should be extradited to face charges of money laundering, externalisation of foreign currency and fraud in Zimbabwe.
Business Against Crime chief executive Kenny Fihla said his organisation, which is affiliated to the top 70 of South African companies, was worried about the negative perceptions that international investors got over the activities of corrupt individuals doing business on the continent.
"Business Against Crime is working with the government to nip corruption, commercial fraud and white-collar crime in the bud. A lot of international crime syndicates are now highly sophisticated and millions go down the drain," Fihla said.
"It is important that banks, insurance and the financial services industry work with police to stamp out corruption."
Mawere, one of Zimbabwe's richest businessmen and until recently considered President Robert Mugabe's closest business crony, was arrested over allegations of fraud and flouting foreign exchange rules.
Mawere's arrest through Interpol, coming after the arrest of Zimbabwe finance minister Chris Kuruneri, gives credence to Mugabe's claims that there will be no "holy cows" in his anti-corruption crackdown.
Mawere, the majority investor in the plush Kilimanjaro nightclub at Melrose Arch, has established a diversified group of companies involved in the mining, industrial, construction, agricultural and financial sectors.
His principal operations are in South Africa, where he has been based since 1995. His companies employ more than 9 000 workers in Namibia, Malawi, Zambia and Democratic Republic of Congo.
Police spokesperson Mary Martins-Engelbrecht said: "The case over which he has been released on bail is about whether or not he is extraditable to Zimbabwe. If he is, then he will be extradited once the courts have made their final conclusions.
"He can't be extradited now before the court process is complete."
Martins-Engelbrecht said Mawere was wanted for alleged fraud and flouting of exchange rules in Zimbabwe.
"We cannot comment on the details of the allegations. That is the prerogative of the Zimbabwe police," said Martins-Engelbrecht.
However, it is understood that authorities want Mawere to be interviewed in connection with allegations of undervaluing his asbestos exports from Zimbabwe. They also want to verify whether the more than R7 million he used to buy the Kilimanjaro nightclub last year was moved legally or illegally from Zimbabwe.
A team of Zimbabwean police officers from the Central Intelligence Department fraud section is already in South Africa to escort Mawere back to Zimbabwe.