Messages From Zimbabwe

Two Harare men who allegedly swindled a United Arab Emirates agricultural company of shares worth US$103000 and vehicles worth US$28500 yesterday appeared at the Harare Magistrates’ Courts facing two counts of fraud.

Peter Valentine (50) and Alan Leslie Alison (57), who were represented by Mr Francis Katsande of F.M. Katsande and Partners and Mr Chris Mhike of Atherstone and Cook, were granted bail of US$500 each when they were arraigned before magistrate Ms Cathrine Chimanda.

Ms Chimanda ordered them to report to the police once a week and to surrender their passports.

Prosecutor Mr Public Mpofu told the court that the complainant, East Island Agricultural Services Company, is based in the UAE and a financier of Mydale International Marketing (Pvt) Ltd, a duly registered Zimbabwean company.

East Island Agricultural Services representative Mr Abbas Omar Bashir is also the managing director of Mydale.

Mr Obaid Salem is the director of East Island Agricultural Services.

It is alleged that Mydale was incorporated in Zimbabwe on October 12, 2006 in terms of the company laws of Zimbabwe.

Upon inception, the appointed directors were Mr Doubt Chinembiri, Mr Tonderai Chiguvari, Mr Golden Rwavi and Mr Abbas Omar Bashir.

The other two directors resigned leaving Mr Rwavi and Mr Bashir as the two directors controlling 65 and 35 percent of the firm respectively.

It is further alleged that Mr Rwavi ceded his 65 percent shares in Mydale to East Island Agricultural Services.

This left East Island owning 1000 shares in Mydale through its nominee directors Mr Rwavi and Mr Bashir.

The shares were to remain in the nominees’ names for administrative purposes.

Mydale’s mandate was to buy and export Katambora seed from Zimbabwe and export to the UAE where it would be sold through East Island.

In September 2008, the court heard, Mr Bashir had to leave the country for the UAE to attend to family business and so Mr Obaid Salam had to look for someone to represent his interest, resulting in him bringing Valentine as a partner to run the affairs of Mydale.

It is further alleged that they signed a partnership agreement on September 19 last year in which they clearly stated that Valentine could only become a 51 percent shareholder and director in Mydale after paying US$103000 to East Island.

Pursuant to the agreement, Mr Rwavi and Mr Bashir signed some share transfer certificates and transferors and left all the other portions blank to be signed by the transferees after the $103000 was paid by Valentine.

The uncompleted share transfer certificates were left in trust with consultant, Alison.

Mr Bashir and Mr Salem left Zimbabwe for the UAE on September 29 last year and Valentine and Alison connived and gave themselves 14 and 51 percent shares in Mydale respectively contrary to the partnership agreement, the court heard.

Valentine made himself a managing director through a meeting he convened with Alison.

On the second count Mr Salem allegedly sent nine vehicles from the UAE to Mydale.

The vehicles belonged to East Island and Mydale was the recipient.

Mr Salem instructed Dr Rob Kelly to sell the vehicles on his behalf.

He sold six vehicles and took the remaining three to Hammer & Tongues Auctioneers for sale.

Valentine and Alison, it is alleged, using the fraudulently acquired directorships and shareholdings in Mydale, misrepresented to the High Court that the vehicles belonged to them hence they should be surrendered to Mydale.

The High Court, on the basis of the alleged falsehoods presented by the pair, issued an order compelling the auctioneers to surrender the vehicles to Mydale.

The two took possession of the vehicles and started using them, prejudicing East Island of US$28500, the court heard.

(Source)