News / National
Mnangagwa's son loses US$4m
24 Oct 2020 at 08:06hrs | Views
PRESIDENT Emmerson Mnangagwa's son, Tarirai David Mnangagwa, was allegedly duped of US$4 million after he was booted out a company which he co-funded.
The directors of Hozheri Stone Crushers Private Limited have already appeared in court where they were granted $20 000 bail each by Harare magistrate Judith Taruvinga, who remanded them to November 27.
The accused, Elizabert Mushiringi, Chad Cecil Mupandanyama and Alec Mawere, who were represented by Tatenda Ndhlovu and Reginald Chidawanyika, were charged with fraud.
Allegations are that on September 29, 2017 Mushiringi and Mupandanyama registered a company called Wozheri Stone Crushers Private Limited with the Registrar of Companies under number 8640/2017.
According to their memorandum of association, Mnangagwa was a major shareholder with a 60% stake, Mushiringi had 5% while 15% were controlled by Mupandanyama.
It is alleged Mushiringi and Mupandanyama owned 40% on registration, but only took 20% indicating they would allot the remaining shares later.
Since the formation of the company in 2017, Mnangagwa took on his role of financier and was tasked to scout for other investors.
It is the State's case that on July 2, 2018, Mushiringi and Mupandanyama after realising that Mnangagwa had brought in viable investment in the company, allegedly connived to boot him out of the company.
The State alleges Mushiringi and Mupandanyama allegedly fraudulently removed Mnangagwa from the directorship and replaced him with Mawere and updated the records at the Registrar of Companies.
It is alleged when the complainant was removed, he was never told of the development and he continued rendering services to the company.
On October 10 this year, during the verification of account opening at CBZ Bank, the complainant got to know that the accused persons had used fake company documents to resign him from the company, which then prompted him to report the matter to the police.
Armed with a warrant of search, detectives from Commercial Crimes Division proceeded to Gweru and seized the company documents used in the commission of the offence.
The State alleges Mnangagwa suffered a prejudice of US$4 million of the investment due to the accused person's misrepresentation.
The directors of Hozheri Stone Crushers Private Limited have already appeared in court where they were granted $20 000 bail each by Harare magistrate Judith Taruvinga, who remanded them to November 27.
The accused, Elizabert Mushiringi, Chad Cecil Mupandanyama and Alec Mawere, who were represented by Tatenda Ndhlovu and Reginald Chidawanyika, were charged with fraud.
Allegations are that on September 29, 2017 Mushiringi and Mupandanyama registered a company called Wozheri Stone Crushers Private Limited with the Registrar of Companies under number 8640/2017.
According to their memorandum of association, Mnangagwa was a major shareholder with a 60% stake, Mushiringi had 5% while 15% were controlled by Mupandanyama.
It is alleged Mushiringi and Mupandanyama owned 40% on registration, but only took 20% indicating they would allot the remaining shares later.
Since the formation of the company in 2017, Mnangagwa took on his role of financier and was tasked to scout for other investors.
It is the State's case that on July 2, 2018, Mushiringi and Mupandanyama after realising that Mnangagwa had brought in viable investment in the company, allegedly connived to boot him out of the company.
The State alleges Mushiringi and Mupandanyama allegedly fraudulently removed Mnangagwa from the directorship and replaced him with Mawere and updated the records at the Registrar of Companies.
It is alleged when the complainant was removed, he was never told of the development and he continued rendering services to the company.
On October 10 this year, during the verification of account opening at CBZ Bank, the complainant got to know that the accused persons had used fake company documents to resign him from the company, which then prompted him to report the matter to the police.
Armed with a warrant of search, detectives from Commercial Crimes Division proceeded to Gweru and seized the company documents used in the commission of the offence.
The State alleges Mnangagwa suffered a prejudice of US$4 million of the investment due to the accused person's misrepresentation.
Source - newsday
