Two charged with defraudin Newcorner Emporium of U...

Two charged with defraudin Newcorner Emporium of US$800k

Munyaradzi Mashiri

Zim Now Court Correspondent

Two individuals, Ariginero Muzeya, 65, from Mt Pleasant and Agness Chatsama, 38, from Corner Fife Avenue and 7th Avenue, appeared in court accused of defrauding Newcorner Emporium Private Limited of property valued at US$800,000. They faced charges of fraud before Magistrate Fadzai Mtombeni at the Harare Magistrates' Courts and are scheduled to return to court on November 4.

The complainant, Newcorner Emporium Private Limited, is represented by Dennis Patrikios.

According to the prosecution, led by Lancelot Mutsokoti, the late Costas Patrikios transferred stand number 804 Salisbury Township, measuring 595 square meters, to Newcorner Emporium Private Limited on October 3, 1996. At that time, Costas was the director of the family-owned company.

In 2001, the directors of Newcorner Emporium left the country at various times, placing the property management in the hands of a real estate agent. Upon their return on December 4, 2021, the directors intended to renovate the property and discovered that Muzeya had unlawfully assumed the role of director and shareholder in the company without their consent or any board meeting.

In response, civil proceedings were initiated to contest Muzeya's directorship and shareholding. Additionally, a report concerning allegations of fraud was filed with the Zimbabwe Republic Police Commercial Crimes Division.

Despite being aware that the issue of his directorship was under legal scrutiny and investigations were ongoing, Muzeya, alongside Chatsama, proceeded to sell the property, fraudulently transferring it to the trustees of the Talati (Panjetani) Family Trust for US$251,368.

The court heard that Muzeya and Chatsama submitted a fraudulent Capital Gains Tax Certificate and a falsified company resolution dated February 27 to the Department of Deeds, falsely claiming that the board of Newcorner Emporium had authorized Muzeya to transfer the property.

Consequently, the Department of Deeds registered deed of transfer 3342/2024 on August 2, 2024. Investigations later revealed that the alleged board resolution from February 27 was fraudulent, as no meeting had occurred, and Muzeya had been removed from his directorship on October 4, 2023. Furthermore, no records exist with the Zimbabwe Revenue Authority concerning the sale of the property between Newcorner Emporium and the trustees of the Talati (Panjetani) Family Trust or Abdul Rajak Ibrahim Talati.

As a result, the Capital Gains Tax Certificate used to facilitate deed of transfer 3342/2024 was obtained fraudulently. Investigations also established that the accused misrepresented information to the Department of Deeds, claiming that the complainant's board had issued a resolution for Muzeya’s appointment to transfer the property, while knowing such claims were false.

The registration of deed of transfer 3342/2024 by the Deeds office ultimately prejudiced Newcorner Emporium of its property, which is valued at US$800,000.