US embassy cable - 05HARARE1536

C O N F I D E N T I A L SECTION 01 OF 03 HARARE 001536 
 
SIPDIS 
 
AF/S FOR B. NEULING 
NSC FOR SENIOR AFRICA DIRECTOR C. COURVILLE 
AFR/SA FOR E. LOKEN 
 
E.O. 12958: DECL: 11/09/2015 
TAGS: PGOV, PHUM, PREL, ECON, EAGR, ZI 
SUBJECT: LEO MUGABE,S EXCESS PROMPTS GOVERNMENT REBUKE 
 
Classified By: Ambassador Christopher Dell for reasons 1.5 b/d 
 
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Summary 
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1.  (C) Robert Mugabe,s nephew Leo Mugabe on October 20 was 
arrested on charges of illegally exporting 30 tons of flour. 
Leo Mugabe and his wife face charges of fraud, smuggling, and 
violating handling procedures of a controlled commodity -- 
grain.  Mugabe,s lawyer told poloff the third charge was 
likely to be dropped, but added that prison time for 
smuggling convictions was not uncommon.  Mugabe maintained 
his innocence to poloff on November 8, stating that an 
unconnected businessman illegally exported the grain without 
his knowledge.  Meanwhile, a week after the arrest the GOZ 
seized a farm that Mugabe had owned for more than a decade, 
charging that the agricultural land was lying idle.  End 
Summary. 
 
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A Mugabe on Trial 
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2.  (SBU) Zimbabwean police on October 20 arrested Leo Mugabe 
and his wife, Veronica, for allegedly exporting 30 tons of 
flour, reportedly worth more than US$8.3 million at the 
official rate, to Mozambique earlier this year.  The couple 
spent one night in jail and then posted bail the next day. 
According to an article in the independent press, this marked 
the first time that Leo Mugabe (or for that matter any member 
of Robert Mugabe,s family) has been arrested despite 
numerous allegations of corruption and fraud against the 
nephew. (N.B. More distant relatives, such as flamboyant 
businessman and ex-Mashonaland West Chairman Philip 
Chiyangwa, have been arrested before.) 
 
3.  (C) Eric Matinenga, Mugabe,s lawyer, on November 3 told 
poloff that his client faces three charges: fraud, smuggling, 
and violating Grain Marketing Board (GMB) regulations. 
Matinenga said the state alleged that Mugabe and his wife, 
through their company Fresh Breeze Ltd, defrauded the GMB out 
of 30 tons of grain.  Matinenga, however, contended that 
Fresh Breeze regularly sourced grain for a bakery the company 
had an interest in and that this instance was not unusual. 
On the second charge of smuggling, the state was claiming 
that the Mugabes sold the flour to businessman Passmore 
Chigwanda ) who was also arrested - who in turn exported it 
to Mozambique.  The Mugabes had not known of the export, 
however.  The state alleged further that the Mugabes worked 
in conjunction with Chigwanda.  Matinenga dismissed the third 
charge, violating GMB regulations, as a nonstarter.  The GOZ 
classifies grain as a strategic commodity, and requires that 
all producers sell their grain to the parastatal GMB. 
According to Matinenga, this regulation only applied to 
farmers, not middlemen like the Mugabes. 
 
4.  (C) Zimbabwean law does not stipulate penalties for fraud 
and smuggling charges, but Matinenga noted that prison time 
for smuggling convictions was not uncommon.  He added that 
judges normally had a great deal of independence in 
determining sentences, which were required to be made in 
&the interests of society.8  As testament to the decay of 
Zimbabwe,s judicial system, Matinenga noted that the trial, 
if this case got that far, could go on forever. 
 
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Mugabe Claims He,s Innocent 
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5.  (C) Mugabe defended himself against the smuggling charges 
in a November 7 conversation with poloff.  Mugabe asserted 
that he and his wife routinely purchased grain from the GMB 
on behalf of the bakery.  This time, however, they had 
purchased too much grain, so they sold the remainder to Blue 
Ribbon, one of Zimbabwe,s milling companies.  Mugabe claimed 
that Blue Ribbon in turn sold it to Chigwanda, who then 
attempted to smuggle it to Mozambique.  Mugabe claimed he was 
not involved in the attempted smuggling and questioned why 
the police would charge him with this crime without also 
arresting officials at Blue Ribbon, who were more closely 
associated with Chigwanda.  He vowed to fight the charges, 
saying that it was important to defend the family name. 
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Mugabe Forced To Give Up Second Farm 
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6.  (C) In a related move that suggests Leo Mugabe,s star is 
waning, the state recently confiscated his Journey,s End 
farm in Mashonaland West, ostensibly due to the lack of 
farming activity on the property.  Reportedly purchased by 
Mugabe in 1993, the seizure of his farm was oddly reminiscent 
of the evictions of many white farmers, albeit without the 
violence and coercion.  According to press accounts, his farm 
was listed for acquisition in the local paper nullifying his 
title to the land.  He was then given only a few days to 
vacate the property, during which time he was reportedly busy 
tabulating the value of improvements made on the farm for 
future compensation.  The seizure of the Journey,s End farm 
came only months after Mugabe acquired another farm in 
Mashonaland West under the GOZ,s fast track land reform 
program in April; to date, the state has not targeted this 
farm.  Mugabe dismissed the impact of the seizure when 
speaking with poloff, saying that he had actually offered to 
sell the land to the state several years ago to ease 
overcrowding in an adjoining communal area. 
 
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Bio Note 
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7.  (C) Leo Mugabe appeared at ease during the nearly two 
hour, introductory meeting with poloff at his timber company, 
Stuarts and Lloyds.  Although Mugabe openly discussed such 
topics as the upcoming Senatorial race and related MDC 
divide, he was tight-lipped regarding internal ZANU-PF 
politics and his relationship with President Mugabe. 
Referring to allegations of corruption while he was chairman 
of the Zimbabwe Football Association, he claimed that the 
attacks were personal and that he actually poured much of his 
own money into the Association out of love for the sport. 
Widely viewed as the family,s black sheep, he has had a hand 
in several high profile schemes that smack of corruption, 
such as the inflated tender in 1999 to build a new airport in 
Harare.  Mugabe has three children; two boys who appeared to 
be in their early 20s and a daughter who is studying in South 
Africa. 
 
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Comment 
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8.  (C) Leo Mugabe,s recent tribulations both reflect and 
will further fuel fear and loathing in the ruling party.  His 
arrest and squelched attempt to acquire multiple farms were 
likely in large part intended as warnings to the junior 
Mugabe and other political insiders in their pursuit of 
excess.  Much like those brought against former party 
insiders Chris Kuruneri, James Makamba, and Phillip 
Chiyangwa, the charges brought against Mugabe underscore the 
cynical nature of anticorruption in Zimbabwe and reinforce 
how uncertain the operating environment is for even the most 
privileged Zimbabweans.  While it is unclear who was 
principally behind the measures against Mugabe, their moves 
certainly had the approval of the senior Mugabe, who 
regularly warns publicly that self-seeking business elites - 
including unnamed relatives - within the party would not be 
spared retribution for economic crimes.  Interestingly, Leo 
Mugabe,s sizable industrial empire appears not to have been 
touched, further suggesting that this attack was meant as a 
warning, not as a crippling blow.  MDC contacts have noted 
the back-bencher's relative political independence in the 
parliament; certainly, his agreement to meet an embassy 
officer during a period of particularly acute bilateral 
tensions is curious. 
 
DELL