ZACC boss fraud trial opens

Gumbo was formally charged with fraud when he appeared before regional magistrate Mr Simon Rogers Kachambwa.

Gumbo allegedly bought offices to be used by the commission in Mt Pleasant, Harare, using Government funds, but registered the property in the name of a company he jointly owned with four of his subordinates.

He denied the charges.
In his defence outline read in court by his lawyer, Mr Raphael Tsivama, Gumbo said the acquisition of stand No. 872 Betterment Close was not done by him personally but by ZACC’s secretariat as the appointed officers or directors of Mortgage Property (Pvt) Ltd.

He added that the secretariat’s actions in this regard were above board and with the ultimate objective of benefiting ZACC.

“The accused will also state that to his knowledge stand 872 Betterment Close was purchased for US$1 680 000, which is the amount which was communicated to him and the Commission in general by Popatalal Samir (seller’s agent) and which was also reflected in the agreement of sale that was availed to him,” read the outline presented to court by Mr Tsivama.

Gumbo said when ZACC was served with a notice to vacate the premises, the Commission went about identifying a suitable building to buy and eventually settled for 872 Betterment Close.

The commission, he said, was advised by Samir that the owner was only interested in selling the property to a real estate company and not keen to sell it to ZACC as they were suspicious of ZACC’s motives.

“As a result of this, it was suggested that ZACC incorporates a private company or buys a shelf company which it would use to acquire the property.

“The commission decided to purchase a shelf company called Property Mortgage and for transparency’s sake all the general managers, save for Mrs (Sandra) Nhau who was on sick leave, be put as directors with the commission as the sole shareholder of the company,” he said.

The prosecution, led by principal law officer Mr Jonathan Chingwinyiso and law officer Ms Sharon Fero, called its first witness, Mr Denford Chirindo, the commission’s chairman, who testified against Gumbo.

Mr Chirindo said Gumbo was the link between the commission and the secretariat hence was accountable for implementing the resolutions of the commission.

He said the general managers would report to him and he would report to the commission.
“Nothing would be done by the secretariat without the commission knowing.

“Accused person was accountable for whatever the secretariat was doing since he was privy to their day-to-day operations and he would give them instructions,” he said.

Mr Chirindo said he is the one who noticed the anomalies before writing a report to the police and the Ministry of Home Affairs.
The trial continues today.

The State alleged that in 2010, ZACC approached the Home Affairs Ministry seeking alternative accommodation when their landlords were about to evict them.

The ministry instructed Gumbo to look for alternative property and he identified 872 Betterment Close in Mt Pleasant that belonged to Diane Spalletah.