Staggering US$19 million tax bill ‘burns’ Mugabe nephew’s cigarette empire
Harare- THE late former president Robert Mugabe’s nephew-in-law Adam Molai’s cigarette empire Pacific Cigarette Company (PCC) is ‘burning’, forcing company to adopt voluntary business rescue, Express Mail Zim can report.
This development comes after Zimbabwe Revenue Authority (ZIMRA) hit PCC
with a tax bill of over US$19 million and garnished its accounts.
According to a statement released by the company, it survived on toll manufacturing since 2005, an arrangement under which it makes cigarettes for other companies.
However, ZIMRA made a somersault and shifted goalposts on how it treats taxation for toll manufacturers, leaving the company with tax liabilities of US$19,315,233.82 and ZWL79,845,954.36.
Through toll manufacturing, PCC and other businesses were able to source raw materials from their customers, ensuring their sustainability, while complying with the RBZ’s 50 percent foreign currency surrender requirements.
Read part of the statement:
“The then Reserve Bank governor promoted toll manufacturing as a durable business model for companies facing similar foreign currency challenges.
“Since then, the toll manufacturing model has been our accepted raw material funding model, removing the need for PCC to finance the working capital for export raw materials.
“It indirectly, supports hundreds and thousands of livelihoods in Zimbabwe.”
The company further state that it was founded on strong entrepreneurial principles and with an unambiguous commitment to the development of Zimbabwe and its people, and thus as an ethical corporate citizen, it remains steadfast in its dedication to sustaining jobs and serving customers, among others.
It is in that light, that the PCC said it was committed to working with the tax man to find an amicable solution to their impasse with Zimra.
Speculative reports suggest that the maverick business mogul Molai was been ‘punished’ for his close association and possible funding of Saviour Kasukuwere’s failed presidential bid.
“There is possibility that Molai is paying the price for supporting Tyson (Kasukuwere) in his campaign as you know he (Molai) has a strong financial muscle with intrests in real estate and also having grew up in a business family in Marondera.
” Also bear in mind that he married Mugabe’s niece and is naturally a beneficiary of the G40 cabal when it was still controlling several businesses and key sectors of the economy via former First Lady Grace Mugabe.
“Well, it remains speculation but there is greater probability that its a case of collective retribution ” said our source who preffered anonymity .
Molai has however categorically stated in previous interviews that he had no business relationship with the late Mugabe.
PPC produces brands like Pacific. Pegasus and Branson.
At one time,Molai was implicated in a syndicate of cigarette smuggling by top South African investigative publication- allegations of which he scoffed in a video that went viral online .
In 2018, University of Buckingham graduate was in hot soup as the Zimbabwe Anti-Corruption Commission (ZACC) initiated processes to have him arrested over allegations that he fraudulently received US$16 million from the National Social Security Authority (NSSA) in a dodgy housing project.
He was to be absolved after sterling work from his legal counsel led by Addington Chinaka.
