Key Points
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Never Mhlanga arrested in $5 million Montclair Hotel fraud case.
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Dispute stems from contested share transfers and ownership claims.
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Case highlights legacy issues from NDH’s financial collapse.
Police have arrested Zimbabwean executive Never Mhlanga in Harare over fraud allegations tied to the $5 million sale of Montclair Hotel and Casino in Nyanga’s Eastern Highlands.
Authorities said Mhlanga will appear in court soon to answer to charges linked to the disputed transaction. The hotel was set to be acquired by the Zimbabwe Stock Exchange-listed Rainbow Tourism Group (RTG) from Briolette Services (Pvt) Ltd in a deal announced in November 2024.
The deal, which involved 23 shareholders, needed regulatory approval from the Competition and Tariff Commission. But questions quickly surfaced over how some shares were transferred.
Montclair Hotel fraud case centers on share dispute
Investigators say Mhlanga signed documents for Ludham Investments, a company that held a 4.17 percent stake in Montclair, even though he was no longer a director. That stake, worth about $208,500, was allegedly transferred without proper authority.
Complainant Tinashe Able Chimanikire told police that Ludham lost its stake because of the unauthorized move. Prosecutors now argue that Mhlanga misrepresented his role and acted without the right to approve the transaction.
The arrest adds to the drama surrounding the Montclair Hotel fraud case, which has unsettled shareholders and drawn public attention because of the hotel’s reputation as a tourism landmark.
Legacy of National Discount House collapse
The case also highlights unfinished business from the collapse of the National Discount House (NDH) two decades ago.
According to a report by Billionaires.Africa, the financial house was liquidated in 2004, but several investment vehicles created under it, including Ludham, were left without clear structures of authority.
That uncertainty has carried into the present and is now at the center of the Montclair Hotel fraud case.
Mhlanga, a University of Zimbabwe-trained chartered accountant, has long been involved in corporate finance. He has worked on privatizations, mergers and stock exchange listings, including roles with Dairibord Holdings and the merger that created NicozDiamond.
He also serves as an executive director at Parker Randall Strategy and sits on multiple corporate and non-profit boards.
His arrest marks the beginning of a high-profile court battle likely to test corporate governance rules and investor trust in Zimbabwe’s tourism and business sectors.
