A leaked letter from Zimbabwe’s Ministry of Finance has exposed a direct payment of more than US$4.2 million to Betterbrands Petroleum, a company owned by controversial Zanu-PF legislator and gold dealer Scott Sakupwanya, raising serious questions about transparency, tender procedures, and the legality of the transaction.
The document, which surfaced via ZimLive, details the transfer from the Treasury USD Tax Nostro Account (No. 5783600003612) to Betterbrands Petroleum’s ECOBANK account (No. 5712000014236). The payment, executed under the instruction of Finance Secretary George Guvamatanga, has triggered widespread criticism from legal and financial experts.
Use of Nostro Account Under Scrutiny
Nostro accounts, typically used by local banks to hold foreign currency in offshore financial institutions for international transactions, are not commonly associated with domestic payments. The instruction to debit a Treasury Nostro account for a local supplier has raised alarms about the circumvention of established financial protocols and the opaque use of public funds.
Former Finance Minister Tendai Biti slammed the move as illegal and unconstitutional, alleging it violates the Public Finance Management Act.
“The Ministry of Finance is not permitted to pay suppliers directly. Legally, it disburses funds only to ministries or votes as approved by Parliament through the Appropriation Act,” Biti said. “A direct Treasury payment like this is prima facie illegal. It’s a sham and a scam.”
Fuel Supply Deals Bypassed Tender Process
This isn’t the first time Sakupwanya’s company has come under scrutiny. In 2022, Betterbrands Petroleum was one of two firms authorised by the Zimbabwe Revenue Authority (ZIMRA) to import 61 million litres of diesel under the Presidential Borehole Drilling Programme, allegedly without a public tender.
A ZIMRA letter dated 10 August 2022, signed by Commissioner General Regina Chinamasa, confirmed that 50 million litres were allocated to Betterbrands and 11 million litres to Rocket Energy. The fuel was reportedly meant to support borehole drilling projects led by the Zimbabwe National Water Authority (ZINWA), which cited foreign currency shortages as justification for engaging private fuel suppliers.
That letter, copied to top government officials including Finance Minister Mthuli Ncube and Presidential Chief Secretary Misheck Sibanda, explicitly instructed ZIMRA to allow duty payments in local currency and facilitate imports under a special arrangement, with monthly reporting requirements to Treasury.
Sakupwanya, who also owns Better Brands Jewellery, holds a 50% stake in Betterbrands Petroleum, with the remaining shares held by Full Moon Investments. Despite his growing business portfolio, Sakupwanya has faced repeated allegations of corruption, including involvement in illicit gold trading — charges he has consistently denied.
The latest revelation adds to mounting pressure on the Zimbabwean government to clarify its procurement practices, especially involving politically connected individuals and companies.
Civil society groups and opposition leaders are demanding a full investigation into the payment and whether proper procedures were followed.
“This is a textbook example of state capture through shadowy procurement deals,” said a source familiar with the matter. “Using a nostro account to pay a politically connected fuel supplier is not just irregular — it’s potentially criminal.”
The Ministry of Finance and Economic Development has yet to issue an official statement on the payment.
