Online Reporter
Yeukai Karengezeka
Court Correspondent
The State has withdrawn charges against Gokwe businessman Comfort Tanaka Gutu, who was being accused of defrauding his business partner of US$350 000.
The case was dropped before Harare provincial magistrate Mr Clever Tsikwa due to lack of evidence.
The allegations stemmed from a business partnership established in 2021 between Mrs Sibusisiwe Melody Mutendi and Gutu to set up a pharmacy in Gokwe, named Medlife Pharmacy.
According to the partnership agreement, Mrs Mutendi was to fund the entire project in exchange for 49 percent equity, while Gutu retained a 51 percent shareholding.
Mrs Mutendi reportedly transferred an initial US$19 000 into Gutu’s account to start the business.
Although the pharmacy operated successfully at the beginning, its performance declined after three years.
Investigations conducted by Mrs Mutendi revealed that Gutu had allegedly opened two competing pharmacies Nu Centre and Afrihelp, within the same area, without her knowledge or approval.
It was further alleged that Gutu had siphoned stock from Medlife Pharmacy to supply the two new pharmacies, crippling the original business.
Additionally, Gutu was accused of misrepresenting financial information to Mrs Mutendi, claiming that money generated by Medlife Pharmacy had been used to pay taxes to the Zimbabwe Revenue Authority (ZIMRA).
However, it was later discovered that no taxes had been paid.
As a result of these alleged actions, Mrs Mutendi claimed to have suffered financial losses amounting to US$350 000 and nothing was recovered.
