Chivayo 'kickbacks' probed in South Africa

Financial watchdogs in South Africa and Zimbabwe are investigating Johannesburg-based printing firm Ren-Form for possible money laundering linked to a high-profile election procurement scandal involving politically connected Zimbabwean businessman Wicknell Chivayo.

The probe follows explosive revelations from a joint investigation last year by The Sentry and Open Secrets, published in the Daily Maverick, which detailed how Ren-Form supplied grossly overpriced election materials to Zimbabwe in partnership with Chivayo, a controversial figure with close ties to Zimbabwe's ruling elite.

According to a leaked report by South Africa's Financial Intelligence Centre (FIC), shared with Zimbabwean authorities, Ren-Form received over R1 billion from Zimbabwe's Ministry of Finance and Economic Development. Of that amount, more than R800 million was subsequently transferred to Chivayo's business accounts. The FIC flagged the transfers as potentially illicit, stating that "criminal activity cannot be ruled out" and recommending further investigations.

The scandal initially came to light after The NewsHawks reported that Ren-Form had invoiced the Zimbabwe Electoral Commission (ZEC) R23 million for a server typically priced at R90,000, and charged R68,700 per portable toilet - units usually retailing for around R10,000. Audio recordings later surfaced of Chivayo allegedly discussing how the tender profits would be shared among unnamed Zimbabwean officials, identified by initials or code names.

When previously asked whether Chivayo was on Ren-Form's payroll, the company's sales director Jean-Pierre du Sart confirmed: "He's one of our agents over there, so there's nothing wrong with that."

However, the FIC report tells a more troubling story. It outlines how Chivayo's companies funneled large sums from business accounts to his personal ones. One bank account under his name recorded R36.5 million in car-related payments between January 2023 and September 2024. Chivayo, a flamboyant socialite often seen with President Emmerson Mnangagwa, is known for his extravagant fleet of luxury vehicles, some of which have been gifted to influential individuals in Zimbabwe.

The report further revealed that, in addition to payments to Ren-Form, Zimbabwe's Ministry of Finance transferred R157 million directly to Chivayo's South African firm, Edenbreeze, in July and September 2024. These payments occurred after the Zimbabwe Anti-Corruption Commission (ZACC) had announced an investigation into the matter - an inquiry that now appears to have stalled.

Ren-Form has denied any wrongdoing, maintaining that the ZEC contract was lawfully awarded and pledging full cooperation with South African and Zimbabwean authorities. Meanwhile, Chivayo has consistently dismissed leaked recordings and documents as fabrications, denying any involvement in supplying election materials and insisting that any dealings with Ren-Form were strictly commercial.

"The assumption that the size or nature of a payment implies kickbacks is both legally untenable and analytically flawed," Chivayo said in response to questions about the FIC report.

ZEC chairperson Justice Priscilla Chigumba declined to comment, referring inquiries to the commission's management, who have not responded. The ZEC has previously denied any corruption in the tendering process.

The FIC report has been forwarded to South Africa's Hawks, Crime Intelligence, and the South African Revenue Service (SARS), while pressure mounts on Zimbabwean authorities to resume investigations into a scandal that has cast a long shadow over the integrity of the country's electoral process.