David Robertson, Business Correspondent
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Phil Edmonds, the former England Test cricketer, has come under fire for investing £120 million in Zimbabwe and for having links to individuals close to President Mugabe.
The opposition Movement for Democratic Change has accused Mr Edmonds of providing the Mugabe regime with economic support just as the international community calls for tougher sanctions against the country.
In his post-cricket career, Mr Edmonds has become the multimillionaire chairman of Central African Mining & Exploration Company (Camec), which bought a platinum mining business in Zimbabwe two months ago. Mr Edmonds was born in Rhodesia, which became Zimbabwe in 1980, and has retained close links to Africa.
The MDC is concerned that the money paid by Camec for its mining licences could have been passed on to senior members of the ruling Zanu (PF) party. If so, it would probably have breached existing European Union and United States sanctions.
British politicians and shareholders in the company have also expressed concern that one of Mr Edmonds’s backers is Muller Conrad “Billy” Rautenbach, who is believed to be a close associate of Mr Mugabe.
Mr Rautenbach is one of the largest shareholders in Camec and the company’s most recent financial accounts show that it had paid him £19.2 million for “services and assets”.
The international community is stepping up pressure on President Mugabe’s regime before the flawed elections planned for tomorrow. The British Government has raised the prospect of tougher sanctions against Zimbabwe and is encouraging companies to leave the country. Anglo American, the world’s fourth-largest mining group, said yesterday that it was reviewing its $400 million (£200 million) investment in Zimbabwe.
Camec, which is listed on the London Stock Exchange and is worth £1.4 billion, paid about £120 million in cash and shares for a platinum mining company called Lefever in April. Lefever is registered in the British Virgin Islands and is the majority owner of the Bougai and Kironde mines in Zimbabwe. Lefever had previously been owned by a secretive company called Meryweather, which the MDC believes was a front for members of the Zanu (PF) party.
Roy Bennett, treasurer of the MDC, said: “Nobody should want to be involved with people responsible for death and chaos for the sake of ten pieces of silver.”
A spokesman for Mr Edmonds said: “In response to the alleged comment from a member of the MDC, which we find ridiculous, Camec categorically denies that any of the consideration paid for its assets in the country went to any member of the Zanu (PF) party. Camec is in full compliance with all relevant national and international laws relating to its activities in Zimbabwe.”
However, Camec does have links to Zanu (PF) through Mr Rautenbach.
Mr Rautenbach, who is wanted for fraud charges in South Africa, managed President Mugabe’s mining concessions in the Democratic Republic of Congo before he was barred from that country. He is said to be close to the President and is one of the few white businessmen to have prospered under Zanu (PF).
Edward Davey, the Liberal Democrats’ foreign affairs spokesman, said: “These British-based companies that are providing investment boost for Mugabe’s despotic regime will need to be asking themselves whether it can be justified.”
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