Businesswoman denied bail over US$663K fraud

A Harare magistrate has denied bail to businesswoman Lucia Kunaka, the director of Medical Territory Private Limited, who is facing fraud, extortion and money laundering charges involving more than US$663,000.

Kunaka appeared before Harare regional magistrate Jesse Kufa, who remanded the matter to June 16 for further proceedings.

The complainant in the case is Shar Prashant, representing Pharmaceutical and Chemical Distributors.

According to the State, between April 14 and April 17 this year, Kunaka allegedly acted in connivance with Joseph Kanyekanye, who has already appeared in court, and other accomplices who remain at large, to unlawfully pressure the complainant into releasing funds.

Prosecutors allege that the accused falsely claimed the money was required by senior ZANU-PF officials to finance Independence Day celebrations in Maphisa. They allegedly told the complainant that President Emmerson Mnangagwa had personally approved the disbursement.

The court heard that the accused allegedly threatened unspecified consequences should the complainant fail to comply, including potential harm to his business interests, reputation and future prospects of securing payment approvals.

Fearing prejudice, Prashant allegedly authorised the transfer of US$663,480.75 from a lawyers' trust account into a CBZ Bank account belonging to Jemina Capital, an account that prosecutors say was supplied by Kunaka on April 17, 2026.

The State maintains that none of the funds were used for the purported Independence Day celebrations and that the complainant suffered a loss of the entire amount, which has not been recovered.

On the fraud charge, prosecutors allege that between March and April this year, Kunaka and Kanyekanye forged payment instructions purportedly authored by the complainant and addressed to the Permanent Secretary in the Ministry of Finance and Investment Promotion.

The documents allegedly requested the release of treasury bill funds and were accompanied by forged instructions bearing what prosecutors describe as a forged signature of President Mnangagwa.

The State contends that the accused knew a contract between the complainant and Kunaka had already expired and that the documents did not originate from either the complainant or the Office of the President.

Acting on the allegedly fraudulent instructions, the Ministry of Finance and Investment Promotion reportedly processed a payment of US$1.8 million into the complainant's account, believing the documents were genuine.

The complainant later instructed that approximately US$884,641 be transferred into a trust account managed by his legal representatives.

Prosecutors further allege that Kunaka subsequently misrepresented to both the complainant and his lawyers that the funds needed to be urgently released to facilitate Independence Day celebrations, warning that failure to do so could jeopardise the payment and affect future government approvals.

On the money laundering charge, the State alleges that between March and May 19, Kunaka and her accomplices transferred the US$663,480.75 through several third-party accounts in an attempt to conceal the source, movement and ownership of the funds, despite allegedly knowing that the money constituted proceeds of crime.

The matter remains before the courts and Kunaka has not yet been required to plead to the charges.