News / National
Manager in court over ghost workers
31 Oct 2024 at 06:50hrs | Views
Tinashe Madzima, a human resources manager at Livetouch Investments Private Limited, appeared in court on Tuesday facing fraud charges after allegedly creating fictitious employee accounts to defraud three microfinance companies. Magistrate Norman Banda granted Madzima bail at US$300, allowing him temporary freedom as the case proceeds.
Prosecutor Rufaro Chonzi outlined how Madzima allegedly presented a proposal to Livetouch Investments to secure loans for employees through microfinance companies, which the company approved. However, Madzima is accused of manipulating the arrangement to include eight "ghost workers," who were added solely to facilitate loan applications with Probfix Financial Services.
The prosecution claims Madzima extended his scheme to other microfinance companies, including Mountfin Finance and Ergoflex Finance, submitting loan applications for these fictitious employees with falsified documents.
According to the court, on July 9, Madzima allegedly went further by drafting a fake board resolution and memorandum of understanding. To create the illusion of legitimacy, he allegedly copied signatures from the company's board chairperson, Feng Wang, and CEO, Dongning Wang, without their knowledge, and even created a counterfeit date stamp to authenticate the fraudulent paperwork.
The loans, which were also successfully obtained on behalf of 18 legitimate workers, allegedly went directly into Madzima's pockets. His scheme was exposed on October 11 when the microfinance companies reached out to Livetouch Investments over outstanding loan repayments for the ghost workers.
The case has been adjourned as investigations continue, with Madzima set to reappear for further court proceedings.
Prosecutor Rufaro Chonzi outlined how Madzima allegedly presented a proposal to Livetouch Investments to secure loans for employees through microfinance companies, which the company approved. However, Madzima is accused of manipulating the arrangement to include eight "ghost workers," who were added solely to facilitate loan applications with Probfix Financial Services.
The prosecution claims Madzima extended his scheme to other microfinance companies, including Mountfin Finance and Ergoflex Finance, submitting loan applications for these fictitious employees with falsified documents.
According to the court, on July 9, Madzima allegedly went further by drafting a fake board resolution and memorandum of understanding. To create the illusion of legitimacy, he allegedly copied signatures from the company's board chairperson, Feng Wang, and CEO, Dongning Wang, without their knowledge, and even created a counterfeit date stamp to authenticate the fraudulent paperwork.
The loans, which were also successfully obtained on behalf of 18 legitimate workers, allegedly went directly into Madzima's pockets. His scheme was exposed on October 11 when the microfinance companies reached out to Livetouch Investments over outstanding loan repayments for the ghost workers.
The case has been adjourned as investigations continue, with Madzima set to reappear for further court proceedings.
Source - The Herald
