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Prosper Dembedza
Court Correspondent
Judicial manager Cecil Madondo who allegedly sold exclusive mining rights three times between October and December last year, causing one company to lose US$260 000 will spend the weekend behind bars after his bail ruling was deferred to February 8.
The State led by Mrs Netsai Mushayabasa opposed bail saying, Madondo, the managing director of Tudor House Consultants (Pvt) Ltd, was a flight risk and was likely to interfere with State witnesses.
His lawyer, Mr Rueben Mukavhi, said Madondo was a family man who owned a company and a farm and would not leave all that behind because of such a civil case.
Mr Nduna deferred the matter to February 8 for bail ruling.
It is alleged that Madondo had been appointed by the High Court as corporate rescue practitioner of Redwing Mine in Penhalonga, Mutare, when he allegedly sold the mining rights three times.
He was not asked to plead to the charges when he appeared before Harare magistrate Mr Ngoni Nduna on Tuesday.
He is being represented by Mr Reuben Mukavhi.
The court heard that On October 15 last year, Madondo told Patricia Mutombgwera and Grant Chitate that he had given their company Probadeck Investments Pvt Ltd exclusive mining rights in respect of claims held by Redwing Mining Company Pvt Ltd covering 132 gold mining blocks, eight copper mining blocks and any other mining claims belonging to Redwing Mine.
On October 30 last year, it is alleged, Mutombgwera and Chitate, acting upon that information, signed a joint venture relationship agreement with the mining company represented by Madondo believing that their company had secured exclusive mining rights.
Both parties went on to register a tribute agreement with the registrar of deeds to operationalise their joint venture agreement.
Probabadek Investments allegedly paid US$60 000 corporate rescue fees into Madondo’s personal company, Tudor House Consultants, and made a capital expenditure amounting to US$200 000.
It is alleged that sometime in November 2020, Madondo, well knowing that he had ceded all mining rights to Probadek Investments, prepared another memorandum of tribute agreement with Prime Royal Pvt Ltd giving them the same mining blocks which he had ceded to Probadek.
On December 1, Madondo, the court heard, entered into another memorandum of tribute agreement with Betterbrands Mining Pvt Ltd giving them the same mining blocks.
Online Reporter