Prominent businessman and corporate strategist Never Mhlanga has been arrested and is expected to appear in court today facing fraud charges linked to the $5 million sale of Montclair Hotel and Casino in Juliasdale, Nyanga, to the Rainbow Tourism Group (RTG).
The dispute stems from RTG’s acquisition of the hotel in November last year, a deal that involved payouts to several shareholders, including Ludham Investments (Pvt) Ltd. Ludham was originally established under the now-defunct National Discount House (NDH), where Mhlanga once held a senior position.
NDH collapsed in 2004 following financial turmoil and went into liquidation. Its subsidiaries were either sold off or restructured, but Ludham’s stake in Montclair remained intact and later became part of the RTG transaction.
Former NDH executives allege that Mhlanga fraudulently pushed through the Montclair sale despite no longer being a Ludham director at the time. They argue that changes in ownership and directorship after NDH’s collapse stripped him of any authority, yet he allegedly spearheaded the $5 million deal — prompting police to intervene.
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Mhlanga, who was taken into custody in Harare yesterday, now faces fraud charges over the contested transaction.
A University of Zimbabwe-trained chartered accountant, Mhlanga is widely regarded as one of Zimbabwe’s most experienced corporate turnaround specialists. Over a career spanning more than three decades, he has played key roles in major restructuring projects, including the privatisation of Dairibord Holdings, the management buyout of David Whitehead Textiles, and the merger that formed NicozDiamond Insurance.
He has also served in advisory roles during the restructuring of several financial institutions, among them the merger of Trust, Royal and Barbican banks into Zimbabwe Amalgamated Banking Group, and CBZ Holdings’ acquisition of Beverley Building Society.
In addition to his corporate work, Mhlanga has held board seats in listed and private firms, contributed to quasi-governmental bodies, and served on charitable and religious boards.
Despite his long-standing reputation in business circles, the Montclair case has raised serious questions about his legacy. His court appearance today is expected to set the stage for what could become a lengthy legal battle.
