A 58-year-old Borrowdale investor has been denied bail by the Harare Magistrates’ Court after being accused of defrauding a lithium mining company of more than US$3.65 million while serving as a senior executive.
Li Shigang appeared before magistrate Mrs Jesse Kufa facing fraud charges.
The court ruled that Li posed a flight risk and was facing a serious offence, before remanding the matter to July 29 for finalisation of investigations.
The complainant is Chen Dehu, 57, a director of San Ding Lithium (Private) Limited, who resides at Golden Peacock Villa in Borrowdale.
According to prosecutor Lawrence Gangarahwe, Li joined San Ding Lithium in 2022 as Chief Finance Officer and Commercial Manager.
The State alleges that in that role, he was given control over the company’s finances, including fund collection, disbursements, payment approvals, commercial settlements and overall financial supervision.
Prosecutors told the court that on October 12, 2022, Li injected US$630 000 of his own funds into the company, which later gave him access to its financial systems.
Related Stories
During his tenure, the company accumulated capital exceeding US$3.65 million, the court heard.
The State alleges that Li, together with an accomplice identified as Zhu Guozhonga, misappropriated the funds without the knowledge or consent of the complainant and other directors.
The pair allegedly used forged receipts and invoices to conceal the transactions and diverted money meant for company operations for personal use.
The alleged fraud resulted in the suspension of the company’s operations.
Prosecutors further allege that Li and Zhu sold two company-owned Toyota Hilux double-cab vehicles and kept the proceeds.
The court heard that in January 2024, both men resigned without completing proper handover procedures and allegedly failed to surrender financial records, accounting books and reconciliation reports.
The State alleges that Li was intercepted by the complainant and another employee, Chen Xingmei, while attempting to remove company financial documents from the premises during his resignation.
Several attempts were allegedly made to recover the records and resolve the matter, but Li allegedly failed to cooperate or account for the missing funds.
According to the prosecution, the company suffered a prejudice of US$3.65 million, with no money recovered to date.
Leave Comments