Chinese company directors face US$420K fraud charge

Two Chinese nationals appeared before the Harare Magistrates Court yesterday, accused of defrauding a fellow investor of US$420,000.

The accused, Mu Jarui (44), director and shareholder of Katsu Agro Chemical (Pvt) Ltd, and Li Mao (40), director of Kenova Crop Science (Pvt) Ltd, appeared before Magistrate Marehwanazvo Gofa and were each granted US$500 bail.

The complainant, Wang Li, also a Chinese national and director and shareholder of Katsu Agro Chemical, reportedly entered into an investment agreement with Mu and Li in April 2025 to purchase shares in Kenova Crop Science, a pesticide manufacturing company.

According to the prosecution, on April 14, 2025, Wang paid US$420,000 to Li for a 44% stake in the company. Under the agreement, Mu contributed US$210,000 for a 22% shareholding, while Li invested US$330,000 for the remaining 34%. Wang received what she believed was proof of payment.

However, the State alleges that Wang never received the shares she paid for. The fraud came to light in August 2025, when Li filed a High Court application (case number HCH 485/25) claiming that Wang owed money and a car, asserting that the assets belonged to Katsu Agro Chemical.

Upon reviewing the High Court filing, Wang discovered a fraudulent document titled "Investment Refund Agreement", indicating that her US$420,000 investment had supposedly been returned. Wang maintains that she never signed any refund agreement and was not repaid.

The case is ongoing, with the two accused facing trial for alleged fraud.