Director in court for scamming principal

Michael Mashiri

A Borrowdale man has appeared in court to answer to charges of fraud after he allegedly stole from the company in which he is a director.

Michael Smith, 55, appeared at the Harare Magistrates' Court charged with two offences; fraud and corruptly concealing a transaction from a principal as defined in Section 172 of the Criminal Law Codification and Reform Act Chapter 9:23.

The complainant is Michael Asher who is a shareholder and director of MA Auto Suppliers. Smith is also a director of MA Auto Suppliers.

The court heard that Asher left Zimbabwe for Australia in October 2019 and remained there till September 2022.

During his absence Asher became suspicious of Smith's conduct but could not act upon it due to distance.

On his return, Asher accessed the company's electronic and physical records and also interviewed some employees.

He discovered that the company was paying its South African suppliers through a third party company named Mant Procurement.

He discovered that the South African registered company is owned by Smith and his South African based friend Tony Oatley.

Smith had not disclosed his interest in Mant Procurement.

In February 2022 Smith imported two tents from South Africa in the name of MA Auto Suppliers. All costs were paid by MA Auto Suppliers.

Smith sold the same tents to a Ms Horsley who paid for the purchase into Smith's offshore account. As a result, the company lost US$1800

In October 2022, Smith imported a station wagon rear bumper and RHS carrier at the cost of MA Auto Suppliers, inclusive of duty and transportation.

The customer paid the agreed purchase price into Mant Procurement’s FNB account.

MA Auto Suppliers lost R24 259.83

On 17 March 2022 Smith purchased material canvas from South Africa using company funds. Duty for the items and transport costs were all paid by the company.

When the items were delivered Smith claimed that they were his personal property and took them away. As a result, MA Auto Suppliers lost US$810

On another occasion, Smith was authorized by Asher to sell a company car, a Toyota Land Cruiser, to his son for US$7 500. They agreed that the vehicle would only be released upon full payment.

Smith released the vehicle to his son after a payment of US$2 000. He claimed that full payment had been made, prejudicing MA Auto Suppliers of US$5500.

At another point Smith sold three new tool boxes to MA Auto Suppliers. The tool boxes were at the company premises and Smith claimed that they belonged to his South African based friend.

Asher only realised after going through company records, that MA Suppliers was actually the legitimate owner of the tool boxes before purchase so had lost US$300 buying back its own property.

Magistrate Dennis Mangosi who presided over the matter remanded Smith to February 17, 2023. He set bail at ZWL$100 000. Magistrate Mangosi also ordered Smith to surrender his passport and to report to the police once every fortnight.