Online Reporter
Yeukai Karengezeka
Court Correspondent
Synlak (Private) Limited director, Moses Mpofu, has been denied bail in a fraud case involving allegations of misappropriating funds for a biogas project valued at US$415 290.
Mpofu, alongside his company Synlak (Pvt) Ltd, his wife Nobukhosi Mpofu (the company’s finance director), and Vusimuzi James Mpofu (a director), are facing charges related to their involvement in the mismanagement of funds meant for the Mbare Biogas Project.
Regional magistrate Mrs Marehwanazvo Gofa denied Mpofu bail on the grounds that the State presented compelling reasons for opposing his release.
The magistrate noted that Mpofu had failed to provide a plausible defence and did not submit a letter from the City of Harare, which he claimed would prove that the contract termination was premature.
Mpofu will remain in custody while Nobukhosi and Vusimuzi were previously granted bail of US$800 each after their initial court appearance on May 9.
All accused have been remanded to June 25, pending the finalisation of investigations.
According to the State, the case stems from a grant awarded to the City of Harare in December 2013 by the European Union, amounting to €350 500.
The funds were intended for the design and construction of four 200m³ biogas digesters and the installation of a 100KVA biogas generator as part of the Mbare Biogas Project.
A public tender process, launched on March 13, 2015, invited bids for the project.
Synlak (Pvt) Ltd, among other companies, responded to the tender, pledging in their bid document to complete the project and submit an invoice for payment only after installation and commissioning of the biogas plant.
Synlak also claimed to have the financial capacity to complete the project without requiring advance payments, a key condition of the bid criteria.
On March 28, 2015, following a technical evaluation by then Director of Works, Phillip Mabingo Pfukwa (who is also on remand for similar charges), Synlak was awarded the tender.
This decision was approved by Josephine Ncube, the then Corporate Services and Housing Director (also on remand).
Despite their initial assurances, Synlak and its directors allegedly requested an advance payment of US$186 116 shortly after signing the contract.
This was done without submitting an invoice as required by the tender terms.
On August 20, 2015, Synlak generated an invoice demanding an advance payment of US$465 290, falsely claiming that they had fully supplied and installed the biogas equipment.
The payment was authorised by Tendai Kwenda, the then Director of Finance for the City of Harare (who is yet to be arrested), and US$415 290 was paid into Synlak’s accounts.
Nobukhosi and Vusimuzi, as signatories to the accounts, allegedly withdrew the funds for purposes unrelated to the project.
Additionally, the accused misrepresented that they were authorised resellers of Camda New Energy Technology Co. Ltd, a key supplier of the required 100KVA generator.
Despite being fully paid, Synlak failed to deliver the generator, resulting in the City of Harare being prejudiced of US$415 290.
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