Online Reporter
Court Correspondent
FORMER MA Auto Suppliers managing director Michael Gordon Smith came under intense cross-examination this week as the defence case in his fraud trial continued before Epworth magistrate Ms Ethel Chichera.
Smith is facing two counts of theft of trust property, 12 counts of fraud and 25 counts of corruptly concealing transactions from his principal, MA Auto founder Mr Michael Scott Asher.
During cross-examination, State prosecutor Mr Anesu Chirenje challenged several aspects of Smith’s defence, highlighting what he described as significant inconsistencies.
On count one, the State alleges Smith was the mastermind and financier behind Mant Procurement, a South African company registered in the name of his associate, Mr Tony Oatley.
Despite evidence showing Smith allegedly provided the company’s start-up capital and was actively involved in its operations, he denied being part of the business.
The court heard WhatsApp voice recordings recovered by the police cyber unit in which Smith allegedly discussed how Mant Procurement would profit from dealings with MA Auto and suggested the company begin operating immediately.
Although Smith acknowledged that the voice in the recordings was his, he continued to deny involvement in the company.
The State also produced company records recovered from Smith’s work laptop, which allegedly show that he held a 50 percent equity stake in Mant Procurement.
An email exchanged between Oatley, Smith and Mant bookkeeper Sara Hayns was also presented in court.
In the email, Oatley allegedly instructed Hayns to prepare an agreement identifying Smith as a 50 percent shareholder in the event of Oatley’s death.
The court heard that MA Auto was Mant Procurement’s sole customer.
Smith initially claimed Mant handled procurement and transportation services for MA Auto.
However, he later acknowledged that transporter Lloyd Sibanda carried out the transport work and eventually conceded that he personally continued handling procurement.
The State tendered invoices showing Sibanda charged 15 percent of invoice value for transportation services, while Mant allegedly charged MA Auto 25 percent for the same services.
At various stages of cross-examination, Smith gave conflicting accounts regarding his knowledge of Sibanda, at one point claiming he did not know him despite admitting to sending numerous WhatsApp messages directing him on where to collect goods.
The State further alleged that Smith and Oatley charged MA Auto an additional finance fee not imposed by previous transporters and manipulated exchange rates to their advantage when transferring company funds to Mant Procurement.
Although Smith denied wrongdoing, he conceded that he never disclosed the details of the Mant arrangement to Mr Asher.
On Count 12, the State alleges Smith offered Mr Asher an opportunity to purchase three toolboxes that he claimed belonged to Oatley. Investigations later allegedly revealed that MA Auto had paid for the toolboxes.
When confronted with documentary evidence showing the payment trail, Smith altered his version and claimed he personally owned the toolboxes but admitted he had no proof of ownership.
On Count 13, Smith is accused of directing a customer’s payment to Mant Procurement.
According to the State, customer Ant Bown made a payment that was received by Mant, which then paid a discounted amount to supplier Gobi X while retaining the balance.
In his defence outline, Smith claimed he had no involvement in the transaction. However, when confronted with documentary evidence, he stated that the payment had been channelled through Mant because the supplier could only receive funds through the “account holder”.
Under further questioning, Smith appeared confused when it was pointed out that Mant was not the account holder.
The State alleges MA Auto suffered prejudice amounting to R24 259,83, which was never recovered.
Counts 14 and 15 relate to a Toyota Land Cruiser, registration number AEL 3470, allegedly sold to Smith’s son, Trevor Smith.
The State alleges Smith misrepresented to Mr Asher in 2021 that Trevor had purchased the vehicle for US$7 500 when he had only paid US$2 000.
The vehicle was allegedly repaired and refurbished at MA Auto’s expense after Trevor took possession without completing payment.
Smith disputed the State’s version, claiming the purchase price was US$5 000 and arguing that he effectively owned 40 percent of the vehicle.
The State further produced evidence showing the vehicle was later sold to Mr Eugene Pike for US$7 500.
Although Smith denied selling the vehicle, he acknowledged that the signature on the sale agreement was his.
Regarding the refurbishment costs, the State produced a quotation amounting to US$3 767,32. Smith initially suggested the work was completed before Trevor acquired the vehicle and therefore required no payment.
However, when confronted with job cards indicating the repairs were carried out more than a year after Trevor took possession, Smith said he could not recall the dates.
On Count 27, the State alleges Smith entered into a barter arrangement involving customer Mr Preston’s vehicle.
Instead of receiving payment for work performed by MA Auto, Smith allegedly accepted three nights’ accommodation for himself and his wife at a luxury safari camp in Hwange.
The court heard that Smith had informed the customer that the account had been settled on his behalf.
Under cross-examination, Smith admitted the account had not been settled but claimed he intended to pay before he was dismissed from MA Auto in late 2022.
Mr Chirenje pointed out that the arrangement had been concluded in 2021, giving Smith ample time to settle the debt.
The prosecutor further alleged that Smith entered into a second barter arrangement involving accommodation benefits for himself and his wife with another customer and similarly failed to settle the outstanding account.
Smith admitted that he never informed Mr Asher about either arrangement because he did not believe it was necessary.
The State concluded its cross-examination of Smith this week.
The matter resumes before magistrate Ms Chichera for re-examination by defence counsel Mr Takunda Nyambira.
