US$70 million POSB ‘Bank Robbery’ latest: Leaked documents expose Mnangagwa’s plan to sell off State bank in shady deal with international scammers!

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President Emmerson Mnangagwa and Attorney-General Virginia Mabiza are under intense fire for their handling of the attempted sale of a 70% stake in the state-owned People’s Own Savings Bank (POSB), a deal now mired in controversy and allegations of impropriety, The News Hawks has reported.

The proposed sale, which would see the stake transferred from the Mutapa Investment Fund to a shadowy foreign entity named Hebrew Investment Group (HIG) for US$70 million, has raised serious concerns about transparency, due diligence, and the potential risks to depositors and the country’s financial stability. The government would retain a mere 10% stake, with private individuals holding the remaining 20%.

HIG, fronted by pro-Zanu PF cleric Morris Brown Gwedegwe, has been described by government officials and private sector executives as a “consortium of international scammers,” casting a dark shadow over the entire transaction.

One senior official at the Ministry of Finance questioned the judgement of the President and Attorney-General, stating: “It is clear those are scammers. How can a President who calls himself a lawyer and a whole Attorney-General fall for such an obvious scam?” This is an Ignite Media Zimbabwe news production.
The involvement of Attorney-General Mabiza has also drawn criticism, with accusations that she has acted as Mnangagwa’s “legal conduit” to push through the deal, rather than fulfilling her role as the government’s legal advisor.

A private sector executive echoed these concerns, saying: “Ask any banker, we deal with these sort of things all the time. To a banker like me, this is a clear scam. The late Oliver Chidawu, a businessman and Harare provincial minister, lost more that US$1 million when he was promised US$5 billion by some scammers. That is why such transactions should be handled by bankers and other suitably qualified people, not politicians and bureaucrats. Politicians and their advisers can easily sell public assets without realising at the smell money.”

The executive further emphasised the need for expertise in handling such transactions, highlighting the dangers of politicians and bureaucrats being swayed by superficial offers.

A senior Harare lawyer questioned the legal acumen of those involved, asking: “What sort of lawyers are they? How can lawyers fall for such a poorly disguised scam? Do they really think that there is anyone out there who has US$6 billion to throw them?”

The lawyer further elaborated on the legal requirements for selling a public asset like POSB: “More importantly, selling a public asset, especially a significant one like POSB, requires shareholder approval and agreement, because it constitutes a ‘substantial property transaction’ that needs to be reviewed and voted on by shareholders; this is particularly true for publicly traded companies where the sale could significantly impact the company’s value and financial standing. POSB is a state enterprise, a public asset and cannot be sold at a whim of anyone, even the President. The disposal of public assets must be open, transparent, fair, honest, cost-effective and legal, not this dodgy and illegal deal.”

The proposed sale has also raised concerns about the potential risks to POSB’s depositors and the country’s overall financial stability. The POSB is not only a savings bank for ordinary citizens but also plays a crucial role in processing salaries for civil servants, issuing salary-based loans, and paying foreign currency pensions.

The government’s intention to borrow US$6 billion from HIG has further fueled skepticism, given Zimbabwe’s already precarious financial and debt situation. In 2025, Zimbabwe’s debt-to-GDP ratio is projected to be 58%, a decrease from 70.3% in 2024, but still considered unsustainably high.

Zimbabwe’s debt burden, comprising both domestic (US$8.7 billion) and external (US$12.3 billion) debt, totals US$21 billion and has been accumulating for over 25 years, hindering economic growth and access to international funding. While the World Bank suggests that Zimbabwe could resolve its arrears through bold reforms, the country remains locked out of international financial aid due to its debt defaults.

Reserve Bank of Zimbabwe governor John Mushayavanhu has attempted to downplay the deal, despite the existence of supporting documents, including a letter from Mabiza to stakeholders. However, the controversy surrounding the POSB sale continues to escalate, with many Zimbabweans demanding greater transparency and accountability from their leaders, particularly Mnangagwa and Mabiza. Newshawks