Online Reporter
Yeukai Karengezeka
Court Correspondent
AN operations manager at Premier Services Micro-Finance (Pvt) Ltd, Emmanuel Kamutayi, appeared in court on charges of corruptly concealing a personal interest in a business transaction.
Kamutayi was last Friday remanded in custody pending a bail ruling after being brought before Harare regional magistrate Mrs Marehwanazvo Gofa.
The complainant is Premier Services Micro-Finance (Pvt) Ltd, represented in court by board member Mr Marshall Mashavave.
Prosecutor Mr Lancelot Mutsokoti told the court that the allegations stem from events that began in 2018 when Premier Medical Aid Society (PSMAS) established Premier Services Micro-Finance (Pvt) Ltd as a wholly-owned subsidiary.
The microfinance institution intended to provide financial assistance to PSMAS staff and members, enabling them to cover medical bill shortfalls.
In 2019, Kenneth Gandawa was appointed managing director of Premier Services Micro-Finance (Pvt) Ltd, while Kamutayi was appointed operations manager in December 2020.
Both men also served on the board of the institution.
However, the prosecution alleges that the pair abused their positions of trust.
On December 15, 2022, Kamutayi and Gandawa reportedly registered a competing company, Lakeem Finance (Pvt) Ltd, a microfinance institution in which they became directors.
Kamutayi is alleged to have taken on the role of managing director at Lakeem Finance while Gandawa assumed the position of operations manager.
The duo allegedly concealed their involvement in Lakeem Finance from their principal, Premier Services Micro-Finance (Pvt) Ltd, knowing full well that such a conflict of interest would not have been approved by the board.
It is further alleged that they used resources, including company motor vehicles, from Premier Services Micro-Finance (Pvt) Ltd to seek clients for their new venture.
Investigations revealed that Kamutayi and Gandawa dedicated a significant portion of their time and resources to growing Lakeem Finance at the expense of their responsibilities to Premier Services Micro-Finance (Pvt) Ltd.
This dual allegiance is said to have severely undermined the operations of Premier Services Micro-Finance (Pvt) Ltd, ultimately resulting in its closure.
The State charges that the failure to declare their interests and the misuse of company resources by the accused caused financial losses to Premier Services Micro-Finance (Pvt) Ltd and violated the principles of transparency and accountability.
Gandawa, who is already on remand for the same case, and Kamutayi face serious charges of corruption and breach of trust.
Bongani Ndlovu