Directors in the dock

Tendai Rupapa Senior Court Reporter
Two company directors, who were renting a service station, fraudulently changed the property’s title deeds into their company’s name and used them as collateral to cover up for a $1,5 million debt, the court heard last Friday.

According to the State, Hebron Peters (42) and Rosetta Peters (55) who are the directors of Paroan Truckling (Pvt) Ltd, were renting a service station in Ardbennie, Harare, from Emma Rita Frost.

After fraudulently changing the property’s title deeds, the duo allegedly borrowed $1,5million from Mohammed Yakub Ibrahim the director of Lexrec Investments Pvt Ltd who later resumed ownership of the service station after they failed to pay him back.

Hebron and Rosetta appeared before magistrate Mr Vakayi Chikwekwe charged with fraud.

They were remanded to August 5 on $2 000 bail each coupled with some conditions among them surrendering their passports.

The prosecutor Ms Sharon Mashavira, alleged that sometime in December 2009 the accused persons who were dealing in fuel approached Ibrahim seeking a loan.

Ibrahim, the court heard, promised to give them $1, 5million on condition they surrendered collateral security in the form of an immovable property.

Hebron and Rosetta are said to have misrepresented to Ibrahim that they were the owners of the service station.

On March 3 2010, the accused persons fraudulently transferred the title deeds from Frost’s name into the name of their company Paroan Truckling (Pvt) Ltd, the State alleged.

They then gave Ibrahim the title deeds as surety.

After surrendering the title deeds to him, Hebron and Rosetta entered into an agreement with Ibrahim, which stated that in the event of failing to repay the loan, the complainant would automatically take over the said property.

It is the State’s case that after signing the agreement, Ibrahim then gave Hebron and Rosetta $1.5million, which they later failed to repay. On December 29 2011, the property was therefore transferred into Ibrahim’s company Lexrec Investments (Pvt) Ltd thereby becoming the new owner of the service station.

In March 2012, Ibrahim was approached by Frost’s agent who intended to evict him for non-payment of rentals.

After the eviction, Ibrahim discovered that the accused persons had lied that they were the owners of the service station and that he had been duped.

He made a report to the police and nothing was recovered.