By A Correspondent | The fraud trial of businessman Michael Smith accused of swindling MA Auto Suppliers out of at over US$38,000 and R124,000, took a dramatic turn as a key witness detailed financial irregularities in court.
Christine Vellah, the Finance Manager at MA Auto Suppliers testified that her efforts to maintain accurate financial records were obstructed by incomplete information.
Under cross-examination by defense attorney Takudzwa Nyambira, Vellah revealed troubling financial activities linked to a South African-based company Mant Procurement, in which Smith held a 50% stake.
According to Vellah, Mant Procurement funneled company funds without rendering legitimate services.
She told the court that police officers from the Cyber Unit department retrieved email and WhatsApp communications indicating that Smith had been in the process of regularising the company’s status.
Vellah further alleged that an independent contractor charged only 15% for transportation while Smith inflated costs and concealed invoices leading to losses exceeding R100,000.
She outlined several instances where Smith allegedly misappropriated company funds and assets.
In one instance, Smith obtained a US$10,000 loan from Cruiser Bond (Pvt) Ltd in November 2020 without informing company officials forcing the firm to cover the full repayment without any documented use of the funds.
Additionally, in the sale of a Toyota Land Cruiser 78 series for US$13,000, only US$5,500 was accounted for in company records while US$7,500 was allegedly diverted for Smith’s personal use.
The prosecution also claims Smith unlawfully took company property including chairs that he claims to still be in possession of and has been waiting for MA Auto Suppliers to go and retreive from his home and are valued at over R5000 and a 95-liter fridge without making any payment.
In another case, Smith allegedly instructed Vellah to pay ZW$295,200 in fees for a jointly operated boat despite the company being liable for only ZW$88,250.
Smith never repaid the excess amount.
The total amount of money that he defrauded the company is estimated to be over US$60 000.
State Prosecutor Anesu Chirenje presented documentary evidence, including cash records, invoices, emails and bank statements linking Smith to at least 14 counts of fraud.
Smith faces multiple charges including two counts of theft of trust property, 12 counts of fraud and 25 counts of corruptly concealing transactions from his principal.
Represented by lawyer Takudzwa Nyambira, Smith appeared before Harare Magistrate Ethel Chichera.
The case has been remanded to April 11 with at least four more key witnesses including police detectives expected to testify as the prosecution builds its case against the accused.