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Tafadzwa Zimoyo Senior Court Reporter —
Former Turnall Holdings Private Limited finance director Kenias Horonga and Volcano Freight Services managing director, Sydney Chimberengwa yesterday appeared in court on allegations of swindling more than $115 000 from Turnall in a botched asbestos deal.

The duo appeared before Harare magistrate Rumbidzai Mugwagwa who charged them with fraud. They were not asked to plead to the charge and were remanded out of custody to January 31 on $500 each for their routine remand.

It is alleged that in January 2015, Turnall Holdings engaged the services of Volcano Freight Services which was headed by Chimberengwa for freight clearance services.

It is alleged that as a result of this, Horonga (49) and Chimberengwa, (48) developed a close relationship.

Prosecutor Audrey Chogumaira, told the court that on April 28, 2016, the two acted in common purpose and misrepresented to the chairperson of Turnall Holdings, Rita Likukuma where they originated an e-mail to the effect that Volcano Freight Services had free offshore funds of $116 000 that could be used to buy asbestos fibre in Russia on behalf of Turnall.

They also said that Turnall would access the fibre which was held in a bonded warehouse by MAW Investment Pvt Ltd based in Britain after paying an equivalent amount into Volcano Freight Services’ bank account.

Moreover, it is alleged that they also assured Turnall that there were no violations of any laws and as such were seeking approval for the payment.

As a result, Likukuma approved the transaction and finance manager Norman Gwangwadza was instructed to effect payment of $115 845 into Volcano Freight Services’ account.

The State alleges that on April 29 last year, Gwangwadza transferred the money which was equivalent to 90 tonnes of asbestos fibre.

On April 30, the same year Chimberengwa and one of the directors who is still at large withdrew the money through transfers.

The State also alleges that to cover up the offence Chimberengwa and his accomplice submitted fake applications to purchase foreign currency in the name of Standard Bank back-dated to April 16 2016 bearing a date stamp of a South African company, African Mutimodal Managers Pvt Ltd.

They are said to have also submitted a fake invoice in the name of Volcano Freight Services dated April 12 2016 purporting that there was an outstanding payment from the South African company to Volcano for clearance and transportation services of mining equipment from Durban to Johannesburg.

The matter only came to light when Turnall Holdings though its Purchasing manager, Tapiwa Parirenyatwa made a follow up to MAW Investment only to be told that no payment had been made to them.

A report was made to the police leading to the arrest of the accused.

Turnall has already told the market that it anticipates a loss position for the full year 2016 driven largely by cost initiatives whose benefits will be realised from 2017 onwards.