War vets directors acquitted of fraud

Some founding directors of the Zvimba East Veterans Investment Company (Zevic) have been acquitted of fraud charges after the Harare Magistrates' Court concluded a case that had been before the courts for almost two years.

The case arose from allegations involving a US$70,000 transaction from company funds. The complaint was initially filed by the late Douglas Mandaza and was later pursued by Luke Mutungwazi.

In a ruling delivered on Friday, Harare magistrate Artwell Sanyatwe acquitted all the accused, effectively bringing the criminal proceedings to an end.

In his judgment, the magistrate found that the dispute appeared to be rooted in internal disagreements within the company rather than criminal conduct.

The accused were represented by lawyer Brighton Mudiwa, who welcomed the ruling and commended the court for its consideration of the evidence presented during the trial.

Throughout the proceedings, the accused denied all allegations of fraud, arguing that the prosecution stemmed from a long-running leadership dispute within Zevic.

According to the defence, the company was registered in May 2023 with 14 directors, but internal divisions later emerged, resulting in rival factions competing for control of the company and its assets.

The first and second accused, Joe Chimonyo and Deliwe Muvhuti, maintained that they were authorised signatories to Zevic's FBC Bank account and that the disputed funds were legitimately transferred to purchase tractors and a grader for the company's land development projects.

They argued that the equipment was acquired for Zevic's benefit and remains part of the company's operational assets.

The fourth accused, Israel Gada, denied any involvement, stating that he was neither a bank signatory nor a participant in authorising or receiving the funds.

The defence further submitted that the tractors and grader had been publicly commissioned before the internal dispute escalated, with members of both rival factions attending the commissioning ceremony. It also noted that the investigating officer had inspected the equipment during the investigation.

During cross-examination, the defence said complainant Luke Mutungwazi acknowledged that the equipment had indeed been purchased and that he had attended its commissioning. The defence also argued that Mutungwazi confirmed the existence of factional disputes within Zevic and was unable to produce a board resolution authorising him to act on behalf of the company.

At the close of the State's case, the defence successfully argued that the prosecution had failed to establish a prima facie case under Section 198(3) of the Criminal Procedure and Evidence Act, relying on several Supreme Court precedents.

Following the acquittal, the founding directors said they would refocus on Zevic's investment initiatives, including its vehicle benefit programme and land development projects using the plant equipment purchased by the company.

They also maintained that the company's assets remain under the custody of the founding directors and said all directors are welcome to participate in Zevic's programmes.