HARARE, Zimbabwe — Prominent corporate executive Never Mhlanga has been arrested in Harare on allegations of fraud connected to the $5 million sale of the Montclair Hotel and Casino in Nyanga’s Eastern Highlands.
The Deal Under Scrutiny
The case revolves around a November 2024 acquisition in which Rainbow Tourism Group (RTG), listed on the Zimbabwe Stock Exchange (ZSE), announced plans to acquire Montclair Hotel from Briolette Services (Pvt) Ltd for $5 million. The deal involved 23 shareholders and required approval from the Competition and Tariff Commission.
The Alleged Fraud
According to the complaint, Mhlanga allegedly misrepresented himself as a director of Ludham Investments, a special-purpose vehicle previously associated with the now-defunct National Discount House (NDH). He reportedly signed off on the share transfer to RTG without legitimate authority, even though he had long ceased to hold a directorship with Ludham.
Complainant Tinashe Able Chimanikire alleges that Ludham’s 4.17% stake in Montclair—valued at around $208,500—was transferred improperly, resulting in financial loss. Prosecutors say this unauthorized action constitutes fraud, prompting police to detain Mhlanga after a formal report.
Legacy of NDH Collapse
The case also highlights unresolved issues stemming from the collapse of NDH in 2004, which left entities like Ludham Investments in legal and operational limbo. With unclear mandates and disputed ownership rights, legacy disputes have continued to haunt Zimbabwe’s financial and corporate sectors.
Mhlanga’s Corporate Background
Never Mhlanga, a chartered accountant and University of Zimbabwe graduate, has held senior roles in corporate advisory, specializing in privatizations, mergers, and listings. His past projects include the Dairibord Holdings listing, the NicozDiamond merger, and several banking consolidations. He currently serves as an executive director at Parker Randall Strategy and has sat on numerous corporate and non-profit boards.
Mhlanga is expected to appear in court in the coming weeks.
