Zimbabwe: Pioneer Boss, Bredenkamp in U.S. $4 Million Debt Wrangle

Source from:  Financial Gazette (Harare) 18 October 2008 10/27/2008

A COMPANY in which Pioneer Corporation Africa (PCA) director Simon Rudland has a significant interest is demanding repayment of a US$4 million debt owed by a company owned by John Bredenkamp, The Financial Gazette heard this week. Sahawi International, a South African company, which trades in tobacco, on August 25 filed a High Court application in Harare to recover from Bredenkamp the outstanding debt. Rudland controls a substantial stake in Sahawi, which has strong interests in Zimbabwe through the PCA director's own local tobacco trade, sources said. South African newspapers reported this week that Sahawi claimed it lent Bredenkamp US$22,272 million in 18 separate tranches from 2001 onwards, but only part of this amount has been repaid. "The money at the center of the controversy was lent to Bredenkamp by Rudland's partner," a source said. "Rudland has been insisting on the recovery of the money because he says Bredenkamp does not like him. He says Bredenkamp has made profits, but is not willing to pay back the debt." Efforts to get a comment from Bredenkamp were fruitless. A spokesman for Bredenkamp, Costa Pafitis, refused to comment on the matter. Said Pafitis: "The matter is subjudice in it having been filed in the High Court and I cannot comment on a matter that is before the courts. In any case, we have nothing to do with the South African office here. You should talk to the South African office." Sources close to the dispute said although Sahawi's claim was US$4 million, Rudland had insisted that the amount due now amounts to US$6 million after factoring in interest. The sources said Rudland has had an acrimonious relationship with Bredenkamp spanning a long time because Bredenkamp's tobacco company in Zimbabwe, Breco International, had been in fierce competition with the PCA's tobacco operations. The PCA director was reluctant to give details of his involvement in the case when contacted for comment this week, but confirmed he was a partner in Sahawi. Rudland also confirmed that Sahawi had gone to court although he was non-committal about the reasons behind the court action. Bredenkamp's business empire grew from selling Zimbabwean tobacco internationally before moving into controversial military deals. Eight years ago, the tycoon invested in a mine in the Democratic Republic of Congo's mineral rich Katanga province given to him by the late president Laurent Kabila. Enditem