Defrauding partner lands man in dock

Herald Reporter

The trial of Michael Gordon Smith on 16 counts of defrauding his business partner of at least US$11 000 and R124 000 and theft of trust property, will open on July 20 at the Harare Magistrates Court.

Smith, a director with MA Auto Spares, had his trial date set on Tuesday when he appeared before Mr Dennis Mangosi.

Smith, who first appeared in court in February this year, allegedly defrauded his co-director and shareholder, Michael Scot Asher, who is the complainant in the case, while Mr Asher was away in Australia during the Covid-19 era when travelling was restricted.

The court heard that Smith allegedly failed to disclose to Mr Asher that their company was paying its South African suppliers through a third party, Mant Procurement (Pvt) Ltd.

Smith also allegedly imported two tents, a station wagon rear bumper and an RHS Carrier under the impression that they belonged to MA Auto Spares before selling them for personal gain.

Additionally, Smith is expected to defend himself for failing to account for US$28 985,72 in service charges received from relatives and friends after using the company’s resources.

It is the State’s case that in September last year, MA Auto Supplies discovered that Mant Procurement was overcharging the company and it had suffered prejudice in excess of R100 000.

In February, Smith allegedly imported two tents using MA Auto Supplies resources and sold them to a Ms Horsley for US$1 800. Smith allegedly used the same modus operandi to import a station wagon rear bumper and RHS carrier and the customer paid R24 259,83 directly into Mant Procurement’s FNB account.

On another occasion, Smith was authorised by Mr Asher to sell their Toyota Land Cruiser for US$7 500 and he converted the amount to his own use.

In November 2020, Smith also failed to account for a US$10 000 loan advanced to the company.

Smith is out on $100 000 bail and Mr Zebediah Bofu is appearing for the State.