Illegal Mining Ring Busted: Shengan Mining Managers Arrested for Fraud and Forgery

High-Profile Arrests in Major Fraud and Forgery Case at Fools Mine

Bulawayo, July 3, 2024 – In a dramatic turn of events, the Bulawayo Police have arrested several individuals involved in an elaborate fraud and forgery scheme at Fools Mine, Hope Fountain. The accused, including Song Hui, Thabane Nhlane, and Chinese translator Mr. Ding, Lui Song, are set to appear in court today, following allegations that they orchestrated an illegal takeover and operated the mine without proper authorization.

Mohammed Daka, a trustee and attorney for Fools Investment (Pvt) Ltd., lodged a detailed complaint that has now led to these arrests. According to Daka’s sworn statement, the illegal activities at Fools Mine began when the mine’s special grant expired in May 2021. The grant’s expiration should have halted all operations, but instead, an internal power struggle over the mine’s ownership ensued. The main investor, Xu Xiaofei, had returned to China, leaving the mine in a state of limbo.

Despite this, Song Hui and his associates continued to run the mine under the guise of a new entity, Sheng An Mining (Pvt) Ltd. They allegedly changed the company name fraudulently and began mining operations in February 2022. Daka’s statement reveals that these illegal activities persisted until April 2024, including underground mining, custom milling, and gold eluting, all without legal standing.

Daka recounted a troubling incident in February 2024 when he received a call from a Ministry of Mines inspector about a death report at the supposedly non-operational mine. Upon investigation, Daka and another attorney, Munyaradzi Charakupa, discovered the mine in full operation with numerous workers and significant mining activities underway.

Further scrutiny uncovered a fraudulent change in ownership documents, implicating Zhiyuan Wang and others in the illegal acquisition and operation of the mine. The new alleged owners, Kai Wen and his associates, had been operating the mine with forged permits and without the consent of the rightful owner, Xu Xiaofei.

Authorities acted swiftly after Daka’s report, with the Ministry of Mines and Mining Development ordering an immediate cessation of all mining activities. On April 5, police enforced this order, halting the illegal operations and leading to the arrest of those involved.

The accused now face charges of fraud, forgery, and unlawful mining. The investigation also revealed extensive damage to the mine’s equipment and vehicles, estimated at over US$50,000. Daka’s statement highlighted not only the illegal mining activities but also the malicious destruction of property and the acquisition of mining permits through deceitful means.

Today’s court appearance marks a significant step in holding the perpetrators accountable. This case underscores the vigilance required in protecting the integrity of the mining industry and ensuring that legal protocols are strictly followed. The community and stakeholders now await the court’s decision on the fate of those involved in this complex web of criminal activity.