Harare businessman Hugh Tinashe Sibanda has been convicted in the High Court for orchestrating a multimillion-dollar smuggling operation that defrauded Zimbabwe of over US$2.8 million in unpaid taxes.
Sibanda, the owner of Centenary Tobacco Company, was found guilty of smuggling over 4.4 million litres of diesel into the country using forged rebate letters, enabling him to evade hefty import duties.
Justice Benjamin Chikowero handed down the guilty verdict last week following a full trial that exposed the elaborate scheme. Police uncovered the scam after identifying significant irregularities in import records, triggering an investigation that revealed a trail of fraudulent documentation.
The court heard that Sibanda’s actions not only deprived the state of crucial revenue but also allowed him to reap immense profits at the expense of honest taxpayers.
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The fraudulent operation centered on the use of fake rebate letters to bypass customs duties. By forging these documents, Sibanda was able to bring millions of litres of diesel into Zimbabwe without paying the requisite taxes, undercutting legitimate businesses and destabilizing the fuel market.
The smuggling ring, described by prosecutors as one of the most brazen in recent years, has left a significant dent in the country’s fiscal integrity.
Sibanda’s criminal record further tarnishes his reputation. In 2021, he was implicated in another high-profile fraud case involving OB Plus Trading. Sibanda was accused of defrauding the company of 360 tonnes of maize valued at US$131,400.
While the maize fraud case highlighted his willingness to exploit loopholes for personal gain, the diesel smuggling operation has firmly established him as a key player in large-scale economic crimes.
