Zimbabwean authorities have secured a High Court ruling allowing the continued seizure of gold worth over US$202,000, US$9,000 in cash and a vehicle linked to two Chinese nationals, even after criminal charges against one of them were dismissed.
Justice Philda Muzofa ruled that while Zhang Jiabo was acquitted of smuggling and dealing in gold without a licence due to lack of criminal intent, the question of ownership and lawful possession of the seized assets was separate from the criminal proceedings.
The case stems from the interception of two gold bars valued at US$93,857 and US$109,036, together with US$9,000 cash, hidden inside a specially constructed compartment between the boot and rear seat of a vehicle attempting to cross from Zimbabwe into Zambia through the Kariba border.
Fellow applicant He Chao Qiang later approached the courts seeking the return of the gold, cash and vehicle, arguing that the bullion had been legally documented in Zambia.
However, Justice Muzofa found that documents issued by Zambian authorities did not confer any right to possess or transport the gold within Zimbabwe.
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“The applicant failed to establish that he was entitled and could lawfully possess the articles in Zimbabwe,” the judge said, adding that once the gold entered Zimbabwe, it became subject to Zimbabwean laws.
The court held that the circumstances surrounding the gold’s entry into Zimbabwe were relevant only to the criminal case and did not affect the separate issue of whether the assets could lawfully be held in the country.
The judge also upheld the continued seizure of the vehicle, noting evidence that it had entered Zimbabwe 21 times under temporary import permits and contained concealed compartments used to hide the gold.
“There is sufficient evidence that the first applicant and by extension the owner knew about the secret compartments,” Muzofa ruled.
According to the court, the existence of the hidden compartment itself violated Zimbabwean law, making the vehicle liable to forfeiture.
The High Court ultimately dismissed the application for the release of the assets, handing a victory to the state in its efforts to retain the gold, cash and vehicle despite the collapse of the criminal prosecution.
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