Online Reporter
PERTH. − A Zimbabwean businessman, who ran a disability care firm in Australia, is being accused of financial crimes and using his loot, running into millions of dollars, to buy part of a shopping centre in Bulawayo.
Adrian Tafari Mtungwazi is also being accused of using the money to establish a football club in this country.
He is facing accusations that he owes more than A$6.4 million (about US$4,1 million) to the Australian tax authorities, its employees and other creditors.
Mtungwazi, who is also facing allegations from a liquidator of insolvent trading and funneling money into offshore property and luxury assets, lleft Australia in May this year.
A preliminary liquidator report from last month, which is subject to further investigations, alleges Adachi Disability Services directors − Mtungwazi, 53, and wife Chiedza Mtungwazi, 45, − misused company funds, drawing more than A$2m (about US$1,3m) in “director loans”, buying a Ferrari, and a shopping centre in Bulawayo and a football club.
In the report, Pitcher Partners liquidator Andrew Yeo told creditors Mtungwazi left Australia in May citing “family reasons”, and has not communicated directly with liquidators since.
His wife remains in Perth, with a Pitcher Partners spokesperson confirming she was “cooperating fully” with the ongoing investigation.
If the claims of insolvent trading are prosecuted and proven, the directors face hefty fines and potentially criminal charges that carry up to five years jail time.
No charges have been laid to date.
According to the Australian Securities and Investments Commission, directors are not prevented from leaving Australia while their company is in liquidation, as long as they continue cooperating with investigators.
Earlier this month, the Deputy Commissioner of Taxation escalated matters by personally suing Mr Mtungwazi, filing a writ with the WA Supreme Court seeking to recover what it claimed was more than A$3m (about US$1,9m) in Adachi’s unpaid tax and superannuation debts.
The couple established Adachi Disability Services in Perth in 2019 as a registered provider under the National Disability Insurance Scheme.
The organisation offered daily living assistance and services and, at its peak, employed about 300 staff, supporting 40 clients and operating from offices in Cannington, Gosnells and Maddington.
While Adachi was unravelling, Mr Mtungwazi was projecting wealth.
A video posted to social media two years ago shows Mr Mtungwazi standing in front of five sports cars, boasting about how many he owns.
“These cars are worth a million dollars US,” he tells the person filming.
“I’ve got another 40 cars … there’s five here. But it’s hard work. You got to live life. You gotta do what you gotta do.”
Behind the rapid expansion and image of success, Yeo’s liquidation report claimed Adachi was drowning in debt and mismanagement.
The report said the company began facing regulatory issues in 2021, including “audits and compliance concerns related to the mismanagement of client complaints”.
Yeo said it was in his opinion that by August 2022, the company was insolvent, at which time it already owed about A$4m (about US$2,6m) to the tax office, and it appeared to continue to accumulate millions in further debt.
In February last year, the NDIS banned Adachi from providing care.
Yeo also alleged in his report the directors established new ventures under different names, including New Seasons Health Care Services and Daily Living Disability Services in Traralgon, Victoria − both in April, 2024 − in what he described as an attempt to keep “new businesses separated from the company”.
“Director loans” to Adrian and Chiedza Mtungwazi totalled more than A$2.3 m (about US$1,5m), according to the report.
Yeo also found out that A$335,000 (about US$218,687) was transferred to South Africa, the UK, Philippines and Zimbabwe, between 2022-2024.
He said Adachi’s money was even used to establish a Zimbabwean football club, Adachi FC, and to purchase property in Bulawayo, including the Morningside Shops for A$1.3 million (about US$849,068).
Bulawayo is listed as the birthplace for the directors on their ASIC record. − WATODAY.
