Online Reporter
Yeukai Karengezeka-Chisepo
Court Correspondent
AN investor has appeared before the Harare Magistrates Court facing allegations of misappropriating over US$3,65 million from a lithium mining company.
Li Shigang (58), of Borrowdale, appeared before magistrate Mrs Jesse Kufa charged with fraud.
He was remanded in custody pending bail determination.
The complainant is Mr Chen Dehu (57), a director of San Ding Lithium (Private) Limited, who resides at Golden Peacock Villa in Borrowdale, Harare.
Prosecutor Mr Lawrence Gangarahwe alleged that in 2022 Li joined San Ding Lithium (Pvt) Ltd as the company’s Chief Finance Officer and Commercial Manager.
The State alleges that, by virtue of his position, Li had full authority over the company’s financial affairs, including the collection and disbursement of funds, financial supervision, commercial settlements, payment approvals and overall control of the company’s finances.
The court heard that on October 12, 2022, Li invested US$630 000 of his own money into the company and subsequently gained access to its financial systems.
During his tenure, the company is said to have accumulated capital of more than US$3,65 million.
It is alleged that, without the knowledge or approval of the complainant and other company directors, Li, acting in connivance with an alleged accomplice, Zhu Guozhonga, misappropriated company funds by using forged receipts and invoices to conceal the transactions.
The State alleges that the pair converted money intended for the company’s operations to their personal use, resulting in the suspension of the company’s activities.
State further alleges that the two also disposed of two company-owned Toyota Hilux double-cab vehicles and converted the proceeds to their own use.
The court heard that in January 2024, Li and his alleged accomplice resigned from the company without completing handover procedures, including surrendering financial records, accounting books and reconciliation reports relating to the company’s operations.
It is alleged that Li was intercepted by the complainant and another employee, Chen Xingmei, while attempting to remove company financial records from the premises during his resignation.
The complainant reportedly made several attempts to recover the records and resolve the matter, but the accused allegedly failed to cooperate or account for the missing funds.
The State alleges that the total prejudice amounts to US$3,65 million, and nothing has been recovered.
daniel chigunwe