Breaking Investigative Report:
Presidential Crony With Ties to South Africa, Mauritius, and the Cayman Islands Is Hiding His Wealth and Receiving Privileged Business Access
July 1, 2021 (Washington, DC) – A report published today by The Sentry, “Shadows and Shell Games: Uncovering an Offshore Business Empire in Zimbabwe,” reveals key details of the business practices of controversial businessman and presidential advisor Kudakwashe Tagwirei.
The Sentry’s investigation reveals that Tagwirei, who has been followed by allegations of corruption and cronyism for years, has been using complex corporate structures and seemingly preferential government treatment to build his business empire and enormous wealth. The tycoon now presides over a sprawling network of more than 40 companies spanning the oil, mining, banking, logistics, transportation, and import/export sectors. The report details how Tagwirei has effectively concealed his control over this empire through an elaborate foreign network, hiding his wealth and ownership through offshore financial structures.
Justyna Gudzowska, Director of Illicit Finance Policy at The Sentry, said: “This report presents a textbook case of just how far shady businessmen will go to evade financial institutions’ due diligence requirements—utilizing complex ownership structures, nominee directorships, Cayman Islands investment funds, and trusts. Global banks cannot assume that they are safe from such manipulations just because they have a limited footprint in Zimbabwe. Enablers can be located in any jurisdiction, and financial institutions should be on continuous alert for possible money laundering and suspicious activity.”
J.R. Mailey, Director of Investigations at The Sentry, said: “The story of the Tagwirei network shows how cases of alleged grand corruption are virtually never limited to misconduct in one jurisdiction. A host of business partners, shell companies, banks, and service providers from across the globe helped facilitate and conceal aspects of Tagwirei’s activities throughout his rise. Accordingly, addressing this challenge will require a multinational response.”
John Prendergast, Co-Founder of The Sentry, said: “The operations of Tagwirei’s network are emblematic of larger, structural problems in Zimbabwe. A select group of politicians, the military, and businesspeople dominate government decision-making with little oversight or scrutiny. An environment of impunity prevails for both human rights violations and alleged corruption. Left unaddressed, these dynamics will likely become further entrenched.”
The shady operations revealed in The Sentry’s report raise the question of state capture and point to broader challenges to good governance and transparency in Zimbabwe, where a small group of politicians, military officials, and investors enjoy significant power and little oversight. Over the past year, The Sentry has scaled its capacity in Africa and developed new partnerships in the region to more directly catalyze change. This is the first report by our new program aimed at addressing systemic corruption in Zimbabwe.
Highlights from the report:
Key policy recommendations from the report:
The Sentry recommends a three-pronged response to the challenges presented in its latest report. First, government agencies and law enforcement bodies in numerous jurisdictions, including the United States, South Africa, and Mauritius, must conduct thorough, independent inquiries into Tagwirei’s operations. Second, the loopholes and institutional deficiencies in Zimbabwe that create a permissive environment for corruption require urgent reform. Finally, governments and private sector actors in a position to act must take proactive steps to shut down or reduce corruption and illicit financial flows. Specifically, The Sentry recommends the following:
Read the full report: https://thesentry.org/
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About The Sentry
The Sentry is an investigative and policy team that follows the dirty money connected to African war criminals and transnational war profiteers and seeks to shut those benefiting from violence out of the international financial system. By disrupting the cost-benefit calculations of those who hijack governments for self-enrichment, we seek to counter the main drivers of conflict and create new leverage for peace, human rights, and good governance. The Sentry is composed of financial investigators, international human rights lawyers, and regional experts, as well as former law enforcement agents, intelligence officers, policymakers, investigative journalists, and banking professionals. Co-founded by George Clooney and John Prendergast, The Sentry is a strategic partner of the Clooney Foundation for Justice.