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Chinaman in Zimbabwe court over US$3,65m fraud
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An investor has appeared before the Harare Magistrates Court facing allegations of misappropriating more than US$3.65 million from a lithium mining company.
Li Shigang (58), of Borrowdale, appeared before magistrate Jesse Kufa charged with fraud. He was remanded in custody pending the determination of his bail application.
The complainant is Chen Dehu (57), a director of San Ding Lithium (Private) Limited, who resides in Borrowdale, Harare.
Prosecutor Lawrence Gangarahwe told the court that Li joined San Ding Lithium (Pvt) Ltd in 2022 as the company's Chief Finance Officer and Commercial Manager.
The State alleges that, by virtue of his position, Li exercised extensive control over the company's financial affairs, including the collection and disbursement of funds, financial supervision, commercial settlements, payment approvals and the overall management of the company's finances.
According to the prosecution, Li invested US$630,000 of his own money into the company on October 12, 2022, after which he was granted access to its financial systems.
The court heard that during his tenure, the company accumulated capital exceeding US$3.65 million.
The State alleges that Li, acting in connivance with an alleged accomplice, Zhu Guozhonga, misappropriated company funds without the knowledge or approval of the complainant and other directors. Prosecutors allege that forged receipts and invoices were used to conceal the transactions.
It is further alleged that the pair converted funds intended for the company's operations to their personal use, resulting in the suspension of the company's business activities.
The prosecution also alleges that Li and his alleged accomplice disposed of two company-owned Toyota Hilux double-cab vehicles and converted the proceeds to their own benefit.
The court heard that in January 2024, Li and Zhu allegedly resigned from the company without completing the required handover process, including surrendering financial records, accounting books and reconciliation reports.
According to the State, Li was intercepted by the complainant and another employee, Chen Xingmei, while allegedly attempting to remove company financial records from the business premises during his resignation.
The complainant is said to have made several attempts to recover the records and account for the missing funds, but the accused allegedly failed to cooperate.
The State alleges that the company suffered prejudice amounting to US$3.65 million and that none of the funds or assets has been recovered.
The matter is pending before the Harare Magistrates Court.
Li Shigang (58), of Borrowdale, appeared before magistrate Jesse Kufa charged with fraud. He was remanded in custody pending the determination of his bail application.
The complainant is Chen Dehu (57), a director of San Ding Lithium (Private) Limited, who resides in Borrowdale, Harare.
Prosecutor Lawrence Gangarahwe told the court that Li joined San Ding Lithium (Pvt) Ltd in 2022 as the company's Chief Finance Officer and Commercial Manager.
The State alleges that, by virtue of his position, Li exercised extensive control over the company's financial affairs, including the collection and disbursement of funds, financial supervision, commercial settlements, payment approvals and the overall management of the company's finances.
According to the prosecution, Li invested US$630,000 of his own money into the company on October 12, 2022, after which he was granted access to its financial systems.
The court heard that during his tenure, the company accumulated capital exceeding US$3.65 million.
It is further alleged that the pair converted funds intended for the company's operations to their personal use, resulting in the suspension of the company's business activities.
The prosecution also alleges that Li and his alleged accomplice disposed of two company-owned Toyota Hilux double-cab vehicles and converted the proceeds to their own benefit.
The court heard that in January 2024, Li and Zhu allegedly resigned from the company without completing the required handover process, including surrendering financial records, accounting books and reconciliation reports.
According to the State, Li was intercepted by the complainant and another employee, Chen Xingmei, while allegedly attempting to remove company financial records from the business premises during his resignation.
The complainant is said to have made several attempts to recover the records and account for the missing funds, but the accused allegedly failed to cooperate.
The State alleges that the company suffered prejudice amounting to US$3.65 million and that none of the funds or assets has been recovered.
The matter is pending before the Harare Magistrates Court.
Source - The Herald
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