Fairness Moyana in Hwange
ONE of the Binga Rural District Council senior officials allegedly involved in the diversion of more than US$108 000 meant for the construction of Government-funded fishing rigs, has been denied bail.
Lovemore Siamuyi, the council’s executive officer for social services, appeared before Binga magistrate, Mr Makhelo Ncube, yesterday facing fraud allegations arising from a fishing rig fabrication project introduced by the Office of the President and Cabinet (OPC) in 2021.
The State, represented by Mr Quiet Mpofu, opposed the bail application.
Siamuyi, through his lawyer, Mr Givemore Mvhiringi of Mvhiringi and Associates, had applied for bail pending trial.
Mr Ncube dismissed the application and remanded Siamuyi in custody to November 26.
The State alleges that Siamuyi acted in connivance with Binga Rural District Council chief executive officer Joshua Muzamba and Binga North legislator Chineka Muchimba to divert money intended for three companies contracted to manufacture kapenta fishing rigs.
The complainants are Lweendo Ndulamfu Fisheries (Pvt) Ltd, represented by Norman Chalikambila, Twiite Cooperative Society, represented by Mr Richard Munsaka and Zangalili Investments, represented by Mr Douglas Siazanga.
According to the State, the OPC, through the Ministry of Local Government and Public Works, introduced a project in 2021 for the fabrication of 21 fishing rigs in Binga, with the local authority serving as the implementing authority.
The ministry instructed the council to source contractors for the construction of the rigs. It is alleged that Muzamba, who was the accounting authority, bypassed procurement procedures by approaching Muchimba to source suppliers without going to tender or obtaining an exemption from the Procurement Regulatory Authority of Zimbabwe (PRAZ).
Muchimba allegedly approached the complainants, misrepresenting that he had been tasked by Government to coordinate the project and facilitate the release of funds.
The companies subsequently submitted their documents, which Muchimba allegedly forwarded to Muzamba. The documents, together with those of two other companies in which Muchimba was a co-director, were then submitted to the OPC as prospective manufacturers.
In September 2021, Muchimba invited representatives of the companies to the OPC offices at Munhumutapa Building in Harare to finalise contracts and receive initial payments.
Each of the three complainants allegedly received US$15 250 in cash as an initial payment for the construction of five fishing rigs, while Muchimba received US$30 500 on behalf of his two companies.
The State alleges that the contractors were instructed to undertake the work collectively at premises belonging to Muchimba. Although the first batch of rigs was completed, the funds were exhausted, leaving no surplus as profit.
The court heard that Siamuyi, Muzamba and Muchimba subsequently misrepresented to the complainants that Government had directed that all project payments be channelled through
Muchimba’s personal Nostro account because the companies did not have their own Nostro accounts.
The complainants were allegedly induced to sign affidavits authorising the arrangement.
Muchimba also allegedly prepared an affidavit and persuaded the treasurer of Twiite Cooperative Society to sign it under the pretext that it was among the documents required to support the fishing rig fabrication process.
“Acting on the representations, the OPC released a further US$108 093 on behalf of the complainants on several occasions without their knowledge,” said Mr Mpofu.
The money was allegedly channelled through Muchimba and diverted for other purposes instead of being distributed to the intended beneficiaries.
The three complainants allegedly suffered actual prejudice amounting to US$108 093.
A report was made leading to the accused’s arrest.
