Online Reporter
Yeukai Karengezeka
Court Correspondent
MICHAEL SMITH who previously served as a director of MA Auto Suppliers (Pvt) Ltd trading as Mr Cruiser has been ordered to present his defence in a case in which he is accused of defrauding the company of US$38 000 and R124 000.
This follows the dismissal of his application for discharge by Harare provincial magistrate Mrs Ethel Chichera.
Smith faces multiple charges including two counts of theft of trust property 12 counts of fraud and 25 counts of corruptly concealing transactions from his principal.
Magistrate Chichera ruled that sufficient evidence had been presented by the prosecution to warrant a defence case setting the matter for continuation on July 1.
The charges stem from allegations that Smith while entrusted with the company’s operations engaged in a series of fraudulent activities designed to benefit himself and his alleged accomplice Tony Oatley.
The court heard that during the period in question Smith failed to disclose to the company’s other director and shareholder Michael Scot Asher that payments to South African suppliers were being routed through a third-party entity Mant Procurement (Pvt) Ltd.
Mant Procurement was reportedly created and controlled by Smith to inflate invoices and divert the excess funds for personal gain.
According to the prosecution Smith and Oatley shared the stolen funds breaching the fiduciary duties required of him under the Companies and Other Business Entities Act.
One of the prosecution’s key witnesses Mr Asher testified that Smith had deliberately concealed key financial records and prioritised personal enrichment over the company’s interests.
Asher who was overseas in Australia during the Covid-19 travel restrictions of 2019 had left Smith in charge of the company’s operations.
It was during this time the court heard that Smith allegedly committed the offences.
The State is represented by Mr Anesu Chirenje while Smith’s defence is being handled by Mr Takudzwa Nyambira.
The defence had applied for a discharge claiming the evidence presented by the State was insufficient.
However magistrate Chichera found that the case against Smith was strong enough to require him to respond to the allegations.
