Sequel: Midlands businessmen Peter Midgley and Kenias Sibanda fleece foreign investors in “ghost deals”

Kwekwe- On July 10 2023,Express Mail Zim ran an investigative piece exposing the rot orchestrated by two Midlands based businessmen and herewith is the sequel.

This complex web of seven High Court cases, and multiple intermediate applications, meant to obfuscate the truth, has now been unraveled.

The facts are simple, clear and point to only one conclusion – this long running case has been “cracked” and the treachery laid bare.

It is now left to the judicial system and the “powers that be” to rectify this blatant fraud and the bilking of honest and good intentioned, foreign direct investors.

President Emmerson Mnangagwa has always made it clear that we must protect our dear country’s reputation which is the foundation of Vision 2030.

Without redress this noble Vision – to foster inclusive economic growth and address poverty resolutely, thereby transforming Zimbabwe into an industrialising, knowledge based upper middle-income country that provides a high quality of life to all its citizens by 2030 – will not be achieved.

A recap, and untangling, of the facts culled from the plethora of court proceedings and private interviews is in order. 2007 April – Peter Midgley and his family (Olive, Roland and Janet) sold their shares in six real estate holding companies, one of which owned the “money spinning” KweKwe Main Street fuel court located at 51 Robert Mugabe Way, KweKwe to Gondwanaland (Pvt.) Ltd.

Thus Gondwanaland became the registered shareholder of each of the six holding companies and took possession of, and rented out, the seven properties receiving a steady stream of income.2011 November – Peter Midgley and family cede their entire right, title and interest in respect of the six Midgley Group companies and all Gondwanaland actions to Kenias Sibanda.

The Cession Agreement forms part of the Court record.2012 January – 5 years after the original deal Peter Midgley and Family, represented on the High Court record by Kenias Sibanda, launched a legal action demanding the return of the 6 former Midgley Group company shares and the eviction of all tenants from the 7 properties.

The action was dismissed as the Court concluded Sibanda had no legal standing to bring the action.2014 March – more than two years later Hopetech Enterprises, to this point an unknown, mysterious and long dormant company organized in 2005, having no apparent means of financial support, files a High Court Summons claiming ownership of the six Midgley Group companies (all such shares being registered in the name of Gondwanaland) from Peter Midgely and (unconventionally) the Midgley Group of 6 companies themselves (but not Gondwanaland which had no notice of any of these proceedings and hence no opportunity to file a defense nor, surprisingly, Peter Midgley’s 3 other family members who were original shareholders!).

As proof of its ownership rights Hopetech places before the High Court a purported earlier agreement of sale dated November 2006 for US 1.0 million cash consideration.2015 January – Peter Midgley, on his own behalf and the 3 other family members, voluntarily enters into a settlement agreement with Hopetech and consents to the Hopetech claim.

The High Court grants the Consent Order and directs the eviction of all Gondwanaland tenants from the 7 properties owned by the 6 former Midgley Group companies. 2015 March – Hopetech purports to perfect the Consent Order by serving it and Eviction Notices on Peter Midgley and the 6 former Midgley Group companies at 30 Burma Road, KweKwe – which is neither Peter Midgley’s residential address nor the registered office of the 6 companies.

Further, the person accepting service of the initial Court Summons is a mystery – Peter Midgley not having been a director of the 6 companies since 2008 had no authority to accept service on their behalf.Before Gondwanaland is aware of the Consent Order (not having been made a Defendant) the High Court confirms it by default and Hopetech has the Sheriff evict all of Gondwanaland’s tenants from the 7 properties.Gondwanaland successfully challenges the Consent Order, which is rescinded by the High Court, but at this point has lost control of 5 of the 7 properties, and the relevant rental income streams.

These 5 properties, including the Main Street Fuel Court, have fallen into disrepair and remained dormant except one stand which has been used to house security guards employed by Hopetech (and paid for by Kenias Sibanda) to guard all 7 properties. 2015 September – the final High Court case to determine ownership of the 6 former Midgley Group companies, and the 7 properties, awaits adjudication.

Layers of subterfuge created by the alleged fraudster and his accessories had to be peeled away by answering the following critical question:

“Was the purported prior sale of the Midgley Group, comprised of the 6 real estate holding companies, including the prized KweKwe Main Street Fuel Court, by Peter Midgley and his family to Hopetech fraudulent and if so who and how was the fraud orchestrated?”

This is the crux of the matter and has been confirmed beyond doubt as a forgery-based fraud.

Hopetech’s November 2006 Sale Agreement with Peter Midgley, his 3 family members and the 6 companies was a “back dated” document.

It contained forged signatures for each of Peter Midgley, (for himself and on behalf of his 3 family members) and Midgley as a “director” (despite having resigned in 2008) of the 6 real estate holding companies.

Gondwanaland has engaged more than one independent forensic handwriting expert and specialist of questioned documents who have all provided “airtight” expert opinions confirming that all of Midgley’s signatures were forged.

Each of the 7 signatures was identical leading to the irrefutable conclusion that they were photocopied – the most amateur of forgeries. With this conclusion the matter of ownership of the 6 Midgley companies, and the 7 properties ends abruptly. There is no need to delve deeper as the various legal claims brought by Hopetech are based on a fraud perpetrated against Gondwanaland and the High Court of Zimbabwe.

All such claims are “void ab initio” and immediately fall as a matter of law.

Ownership of the shares of the 6 real estate holding companies, already registered in the name of Gondwanaland, are fully vested in Gondwanaland.

The only matter left to be determined is the identity of the fraudster “ringleader” and his accessories, their criminal punishment as well as the amount of civil damages (direct, consequential and punitive) they must pay to recompense Gondwanaland and its international investors.

Such damages are substantial, measured in the millions, reflecting many years of lost rental income, damage to the properties that are now derelict, lost sales opportunities and aggravation.

There can be no other conclusion but that Kenias Sibanda is the mastermind of this blatant fraud.

He “hatched” the nefarious scheme and created the November 2006 backdated agreement. Sibanda, or his two “stooge” Hopetech directors, forged all of the Midgley family signatures and those of the directors of the 6 real estate holding companies.

Sibanda is the only person who could benefit from the fraud. Midgley, for himself and his 3 other family members, had assigned all of their rights to the 6 real estate holding companies, and any legal claims they might have against Gondwanaland, under the November 2011 Cession Agreement.

This agreement was submitted by Hopetech in evidence and forms part of the Court record.In January of 2012 Sibanda attempted to “enforce” his rights under the Cession Agreement by initiating a legal action in the name of Midgley, his family and the 6 companies against Gondwanaland.

The action was dismissed as Sibanda was shown not to have any legal standing.

Having failed to enforce his rights under the Cession Agreement Sibanda “concocts” the fraudulently “backdated “sale agreement with his “frontmen”, Matake and Paradzayi (and likely their legal counsel of the time – a matter to be further scrutinized as another accessory and a candidate for disbarment). Midgley, now long out of the frame having ceded to Sibanda whatever rights he purported to have, was not available or willing to sign the fraudulently backdated sale agreement.

Sibanda was thus in a quandary – he needed 7 signatures – one for Midgley in his personal capacity and 3 family members and one for each of the 6 real estate holding companies.

No problem – Canon to the rescue! Just photocopy one of Peter Midgley’s signatures and insert the same copy on each of the 7 signature lines!It is clear that Hopetech Enterprises, a long dormant and effectively insolvent company, could not afford to pay US $1m to satisfy the purchase price under the backdated sale agreement. The two directors, Simba Matake and Mr. Lazaruos Paradzay, both men of modest means, had no ability to personally fund, or arrange funding, for such a purchase.

All legal fees and security costs throughout this long and sordid affair were paid for by Sibanda.

This is common knowledge in KweKwe and confirmed by interviews with the security guards installed by “Hopetech” to protect the properties a well as a former Hopetech lawyer.Matake and Paradzay were “straw men” (more accurately Sibanda stooges) and should not be permitted to hide behind the corporate veil of Hopetech and thus avoid responsibility for their fraudulent actions.

Fraud is a clear and irrefutable case where both the directors freedom, and their pocket books, should be pierced.What should be the “just deserts” meted out to this trio (and others?) for serving up such a sour crime that blemishes our country’s attractiveness as an investment destination, embroils good intentioned foreign investors in over 11 years of false litigation, resulting in the loss of millions of dollars?

Right to respond?

Relentless efforts to engaged the duo were fruitless as the numbers provided were not reachable amid reports that they travelled to South Africa .