Zimbabwe business couple claims state persecution in US$137m fraud trial

A Harare business couple involved in Estate management has accused prosecutors of dancing to the tune of unscrupulous top ranked government and police officers allegedly determined to fix them on behalf of a complainant who claims suffering over $137 million losses through the fraudulent actions of the couple on a Mutare property.

Clark and Beverley Makoni are accused of unlawfully changing ownership of Valley Lodge in the eastern border city and registering it in their name before prejudicing the owners of the figure since 2017.

Because of their alleged actions, a fraud case was opened against them and is currently going through trial.

The Makonis claim innocence and allege their accusers were using connections among some top government officials to persecute them.

Through their lawyer Admire Rubaya, the couple argued the charges are malicious and far removed from what really transpired on the ground.

Rubaya said the charges are "malicious, frivolous and vexatious allegations being peddled by the complainant in connivance with those who occupy certain positions of influence within the law enforcement agencies or other government linked institutions who maliciously caused their arrest without any shred of evidence to justify their arrest and or prosecution."

The State however argued that the couple has a case to answer and they applied to tender a deed of transfer which corroborates the allegations.

Magistrate Stanford Mambanje is yet to hand down his ruling on their application.

According to the State, on 30 October 2009, Costic Investments (Pvt) Ltd sold all its shares in Lizack and Valley Lodge to Galwex Investments (Pvt) Ltd.

Sometime in 2017, the complainant assigned Ark Properties, a company which is owned by the couple to manage Valley Lodge as the Estate Agents.

"In August 2017, the accused persons hatched a plan to defraud the complainant by fraudulently changing the Directorship of Valley Lodge (Private) Ltd without the knowledge of the complainant and consent of the complainant.

"On 10 August 2017, accused one (Clack) filed a fraudulent CR.14 to the Registrar of Companies in which he imposed himself and his wife as the sole directors of valley Lodge (Private) Ltd without the knowledge of the complainant," prosecutors allege.

It is further alleged that investigations established that the Makonis went to ZB Bank with fraudulent CR14 and imposed themselves as the signatories of Valey Lodge.

Thereafter, the accused persons made several withdrawals of funds received in the account and converted the money to their personal use.

"Investigations establish that Valley Lodge (Pvt) Ltd is registered under company and is under the Directorship of Ayoob Omar and Mohamed Hussein OMAR.

"Since 2017 when they fraudulently took over the company, the accused have been declaring that the company was making losses leading to Galwex Investments instituting an internal audit to look into the performance of Valley Lodge and other subsidiary companies," the state further says.

The crime, according to prosecutors, was discovered during the internal audit process which established that Valley Lodge had been fraudulently taken over by the couple.

"The accused persons acted unlawfully by corruptly and fraudulently changing the CR.14 and imposed themselves as the Directors of Valley Lodge (Pvt) Ltd without the knowledge and consent of the complainant. The actual prejudice is $137,736,500."