By Beatific Gumbwanda
Tongaat Hulett Zimbabwe (THZ) has suffered a significant legal setback after the High Court
declared a forensic audit report by Price Waterhouse Coopers (PwC) unlawful and void, a
decision that has cleared a former executive director who was implicated in the findings.
The ruling, delivered by Justice Gladys Mhuri on December 17, 2025, stems from a legal
challenge by John Edward Chibwe, a former executive director of Hippo Valley Estate
Limited. Chibwe sought to nullify the audit findings that had led to his dismissal from the
company.
Contacted for comment, Tongaat Hulett Zimbabwe Head of Corporate and Industry Affairs,
Dr Dahlia Garwe, indicated that she could not comment as the matter was under appeal and
therefore still before the courts.
The case centered on a report titled “Tongaat Hulett Limited Accounting Irregularities
Investigation,” which examined the bulk sale of sugar and alleged accounting irregularities
during Chibwe’s tenure as Finance Director. The report had been used to implicate him in
professional misconduct, resulting in his removal from his position.
The respondents in the matter were Zimbabwe Sugar Sales (first respondent), Hippo Valley
Estates (second respondent), Tongaat Hulett (third respondent), and various PwC entities
(fourth and fifth respondents).
Justice Mhuri rejected arguments by the respondents that the document was merely a private
investigation report or private opinion rather than a formal audit. The court noted that the
process involved verifying financial records and transactions, which fits the legal definition
of an audit under the Public Accountants and Auditors Act.
“Whether the process is a private investigation or a forensic audit report depends on the
character of the process and the outcome thereof,” Justice Mhuri stated.
The court pointed to minutes from a special board meeting held on August 19, 2019, which
recorded that “The Chairman introduced Trevor White of PriceWaterhouse Coopers Inc, a
member of the team conducting forensic audit investigations in THL, who had been invited to
give a brief report to the board about their findings on the bulk sale of sugar.”
The pivotal reason for the court’s decision was the legal status of the auditors. The court
found that PWC Advisory Services (PTY) LTD and PWC South Africa are peregrinus
(foreign entities) and were not registered with the Public Accountants and Auditors Board in
Zimbabwe, as required by law.
“It follows therefore that their conduct and subsequent findings fall under the ambit of Public
Accounts and Auditors Act [Chapter 27:12], which provision requires prior registration in
order to undertake an audit investigation,” Justice Mhuri ruled.
Because the PwC entities failed to register with the Zimbabwean Board before conducting the
investigation, the court declared all their actions and findings legally void, effectively
removing the basis for the allegations against Chibwe.
In addition to nullifying the forensic report, Justice Mhuri ordered Zimbabwe Sugar Sales and
Hippo Valley Estate to pay legal costs on a punitive attorney-client scale.
The applicant was represented by B. Maunze of Jiti Law Chambers, while the respondents
were represented by T. Mpofu of Gill, Godlonton & Gerrans.
In a related development, a Durban High Court judge was equally critical of the same PwC
report, describing it as having “incorrect assumptions and baseless conclusions, patent
inconsistencies, containing inaccurate, misleading, incorrect and questionable information.”
Tongaat Hulett Zimbabwe has since appealed against the
