Kadoma gold dealers up for fraud
Heather Charema in Kadoma
Two businessmen here have been arrested and dragged before the courts on allegations of fraud and theft involving mining equipment valued at US$150 000. Sebastian Magodo (46) and Kelvin Magwaza (38), who are well known gold dealers, appeared before Kadoma magistrate Mr Shane Kubonera who remanded them to September 12 this year.
The duo is accused of duping Mr Spencer Tshuma of Tshuma Milling (PVT) Ltd in a mining equipment deal.
They were granted $200 bail each and ordered not to interfere with State witnesses and continue residing at their given address.
It is the State’s case that sometime in September 2016, Mr Tshuma and Magodo entered into a five-year joint venture agreement in respect of Etina Gold Mine to the effect that, during that period, the former would supply all the mining equipment requirements.
In turn, Magodo was supposed to ensure that all the mining ore realised from the mine was sent to the Tshuma’s milling company for processing. The said signing ceremony was presided over by a Kadoma-based lawyer, Dyson Robert Chirairo of Dyson Robert Chirairo Legal practitioners.
Mr Tshuma, during the period stretching from October 5, 2016 and November 20 of the same year, reportedly spent US$150 000 to buy mining equipment, a 50 kilowatts transformer, head gear, hoist, perimeter fence and constructed two cabins.
Mr Tshuma also sunk a 120 metre shaft at the mine and paid salaries to the mine workers.
On March 19 this year, Magodo, without the knowledge and consent of Mr Tshuma, allegedly sold the mine and all the mining equipment on site for $110 000 to Magwaza.
Mr Tshuma, through Magodo and Magwaza’s actions, was prejudiced of US$150 000 and nothing was recovered.
The State further alleged that when Mr Tshuma discovered the offence, he approached the Kadoma Civil Court for redress and obtain a court interdiction under Kadoma Civil Court number 718/19.
Magodo tendered at the High Court a fraudulent document which purported that he had notified Mr Tshuma of the pending sale and had given him the first option to buy, but he had spurned it.
The said document, which bore a fake date stamp in respect of Dyson Robert Chirairo Legal Practitioners and was allegedly endorsed with wrong phone numbers and saved by Magodo to Dyson Robert Chirairo Legal Practitioners.
Magodo had wrongly assumed that the legal practitioners represented Mr Tshuma since they presided over the signing of the original joint venture agreement between the two parties. Magodo is also accused of having caused Dyson Robert Chirairo Legal practitioners to suffer prejudice to its good administration.
Prosecutor Mr Allen Chifokoyo represented the State.