Abel Zhakata Senior Court Report
Harare businessman Energy Mutodi on Monday appeared before a Mutare magistrate on allegations of defrauding desperate home seekers of close to US$2 million in a housing scandal involving the National Housing Development Trust. Mr Noah Gwatidzo dismissed his application for bail pending trial saying he was facing a serious offence and that he was a flight risk

Allegations against Mutodi who is facing similar charges in Harare involving more than US$6 million are that he hatched a plan to defraud cash from unsuspecting civil servants and formed NHDT situated at the Zimpost building in Mutare.

Public prosecutor, Mr Nelson Makunyire said; “He then made a misrepresentation to the civil servants to make some monthly payments into NHDT and as a result the accused purported to them that the money they paid was for purchase of land in Mutare’s Gimboki South housing project pegging, servicing it and promised to allocate some residential stands to each of them.

“A total of 1562 complainants joined the accused NHDT and the accused started receiving varying amounts of cash deducted from the complainants’ salaries through a Salary Service Bureau stop order facility and converted the money to his own personal use.”

The State told the court that Mutodi was the owner of NHDT and some pay slips of the complainants with deductions of cash towards NHDT would be produced in court as evidence.

The court heard that the accused is a signatory to funds of the NHDT and is the one who personally benefited from the cash that the complainants lost through SSB deductions.

The value of the money lost is US$1 699 620. Mutodi was charged with another fraud count involving a stand he allegedly sold to two  people.

“The accused made a misrepresentation to the unsuspecting complainant to join NHDT by making cash payments some of which was deducted from complainants’ salary through a SSB stop order facility purporting that it was for a residential stand in Gimboki South.

“He allocated the complainant stand number 17342, changing from stand number 13544 that he initially allocated to him. On trying to finalise payment for occupation, the complainant discovered that the accused had used the money for his own benefit instead of remitting it to the Mutare Housing Consortium.

The complainant lost US$1 670 in the process,” said Mr Makunyire.
The State opposed granting of bail saying Mutodi was a flight risk and that he would interfere with witnesses.

Mr Makunyire said the accused had six other pending cases of fraud reported at Mutare Central Police Station.
He said Mutodi was not co-operative and made false promises and statements to detectives who were investigating the case.

“Investigations are still in progress since the case involves a huge number of complainants.”
Mutodi’s defence lawyer Mr Nyamayaro argued that his client was a good candidate for bail and would avail himself for trial.

In his ruling, Mr Gwatidzo concurred with the state that Mutodi was a flight risk.
“He has the means or resources to flee if he has an incentive to do so. He also had the means to manipulate the evidence and investigations.

Therefore he is not a proper candidate for admission to bail.
“Accordingly, the application for bail pending trial is hereby dismissed.

In dismissing the application, I have not lost sight of the fact that he is still presumed innocent until proven guilty. But the interests of the state in securing his attendance for trial have been overriding. He is therefore remanded in custody,” he said.

Mr Gwatidzo said presentations made by the State showed that the accused was being evasive and not co-operating with the police and such conduct is consistent with a person who would interfere with investigations if granted bail.

He also said the charges facing Mutodi were serious and warrant a jail term if convicted.
The case goes for trial on August 6.

 

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