25/12/2024
“Donovan Gray An International Fraudster,” say Tunta Mining and Lunga Resources
Serious fraudulent activities surrounding the Zambia Revenue Authority’s (ZRA) payment to Prestige Motors have been exposed, raising many questions about the conduct of the motor company’s owner, Donovan Gray.
Tunta Mining and Lunga Resources have accused Prestige Motors of unlawfully obtaining a court judgment to secure a USD 64 million payout, a scheme hatched by Gray whom they have described as a “dangerous international fraudster”. He was arrested and charged with forgery and uttering false documents, which he used in his questionable dealings, but powerful individuals in police and other government agencies secured his release.
The two companies allege that Gray used forged documents to obtain the fraudulent judgment and secure the substantial award from ZRA, a state agency, thereby depriving the treasury the much needed resources for service delivery to Zambian citizens.
In 2015, ZRA filed an appeal with the Supreme Court against the USD64 million ruling, after the case deadline had passed. The ZRA Board then instructed an out-of-court settlement, which resulted in ZRA agreeing to pay USD 16 million to Prestige Motors, significantly reducing the initial award by USD 48 million.
They have also revealed that Gray had outstanding debts with them, clarifying that their actions in garnishing the USD 8 million payment were lawful steps to recover their debts. In this regard, both Tunta Mining and Lunga Resources vehemently deny any wrongdoing. They say their action to garnish Prestige Motors’ account mirrors the ZRA’s own practice of account garnishment.
“We stand firm in stating that Donovan Gray is a fraudster who fraudulently manipulated the court system to deceive the ZRA out of millions of dollars,” the Directors stated. “Gray’s use of forged documents to secure the fraudulent USD 64 million claim against ZRA is a clear violation of the law. Importantly, he has not taken legal action against our companies for garnishing the funds, knowing full well the legal implications of doing so. He understands that our garnishment was a result of a court-ordered process.”
They have advised the the police and other investigative wings to take immediate action against Gray to stop his “fraudulent acts”.
“We urge the law enforcement agencies to take decisive action to prevent him from defrauding the government again,” the directors stated.
