Clerk in court over $200k scam

HARARE -  A dispatch clerk with a local company which registers shares on the Zimbabwe Stock Exchange (ZSE) was hauled before the courts on allegations of defrauding his employer of more than $200 000.

Jefrey Kudakwashe Hwenhira, 28, was remanded to July 28, on a $200 bail.

As part of his bail conditions, magistrate Don Ndirowei ordered him to surrender his passport.

The court heard that in April this year, Hwenhira allegedly connived with his accomplice, Alexio Nyakudya — who is still at large — to defraud First Transfer Secretaries (Pvt) Ltd by effecting fake transfer of shares of clients.

Pursuant to this plan, on April 15 and 25, Hwenhira allegedly originated fictitious documents to purport that 20 000 Econet shares belonging to Rockmount Trading (Pvt) Ltd had been transferred into his name by Rockmount.

It is the State’s case that due to this misrepresentation, First Transfer Secretaries (FTS) carried out the due process which resulted in Econet Wireless Zimbabwe issuing out share certificate numbers 6067256 and 6067863 in favour of Nyakudya.

Prosecutor Tungamirai Chakurira said Nyakudya in turn allegedly used the certificates to sell 12 375 of the said 20 000 shares to Old Mutual Securities and the remaining ?7 625 shares to Purpose Asset Management prejudicing his employer of ?$12 013,51.

Allegations are that on May 16, Nyakudya adopted the same approach and caused the fraudulent transfer of 322 290 Econet shares belonging to Careles Juul Trevor into Phathisani Sithole’s name.

Econet then issued share transfer certificate number 6068670 to Sithole who in turn sold them to Lynton Edwards Stockbrokers (Pvt) Ltd for $219 995,70.

The offence came to light on June 27 after the ZSE requested documents relating to the transfer of Trevor’s shares, with FTS failing to locate the documents resulting in them reporting the matter to the police.

Investigations carried out by the police revealed that the sale of Rockmount shares were transferred into Nyakudya’s CABS bank account while Trevor’s share proceeds went into Sithole’s CABS bank account as well.

Further investigations also showed that Nyakudya drives a Toyota Chaser which he imported from South Africa on May 7, and all the relevant documentation is in his name.

Comments (2)

hi

Joe - 4 July 2013

Thats lots of money, how could that happen without being noticed

josh - 29 March 2014

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