Trial of couple accused of swindling Gideon Gono’s company begins

HARARE – The trial of a couple accused of embezzling ZWL137 million from Galwex Investments, a company owned by Gideon Gono, the former Governor of the Reserve Bank of Zimbabwe, resumed on Thursday, with the prosecution calling a key witness to testify against them.

Clark Clever Makoni and Beverly Aisha Ndonda Makoni allegedly abused their managerial positions at Valley Lodge, a property owned by Gono, by illegally transferring ownership into their own names through deceitful means.

They purportedly made significant withdrawals from the company’s bank account, exploiting their positions for personal gain.

According to a report by the Herald newspaper, during the court session, Heather Muwokoto, the prosecutor, elicited testimony from Lindiwe Sabeka, Galwex’s internal auditor, regarding the findings of an internal audit conducted at Valley Lodge.

Sabeka introduced herself as a fully qualified member of the Institute of International Auditors, possessing an Honours degree in Accountancy and a Diploma in Forensic Accounting, among other credentials.

She testified that she was acquainted with the accused as individuals engaged by Galwex to manage Valley Lodge as estate agents.

“In 2023, I was tasked by Dr. Gono, along with two colleagues, Mitchel Muomba and Mitchel Kogogo, to conduct an audit and evaluate the operations of Valley Lodge,” Sabeka stated.

She explained that their audit uncovered discrepancies, which eventually led to the couple’s arrest.

The prosecution sought to submit the audit report as evidence, asserting that the document was admissible since its authenticity was not being challenged and it was being presented by someone directly involved in its preparation.

But Admire Rubaya, the defence lawyer, objected, arguing that the document was neither authored nor stamped by a certified public auditor, rendering it inadmissible in court.

He also pointed out that Sabeka had not provided tangible proof of her qualifications, citing regulations from 1997 and 2016 that stipulate only certified public auditors can submit audit reports for external use.

Following arguments from both the prosecution and the defense, the State requested time to submit a written response to the objection.

Both parties agreed to postpone the matter to March 14, when the court is expected to rule on the admissibility of the audit report as evidence.

The trial is set to continue on that date.

According to the State, on October 30, 2009, Costic Investments (Pvt) Ltd sold all its shares in Lizack and Valley Lodge to Galwex Investments (Pvt) Ltd.

In 2017, Gono entrusted Ark Properties, owned by the accused couple, with the management of Valley Lodge in Mutare.

The State alleges that the couple devised a scheme to unlawfully seize the property.

On August 10, 2017, Clark allegedly filed a fraudulent CR14 form with the Registrar of Companies, appointing himself and his wife as the sole directors of Valley Lodge without the knowledge or consent of the rightful owners.

The couple then allegedly utilised the fraudulent CR14 form to access Valley Lodge’s bank account at ZB Bank, where they made themselves signatories and withdrew significant sums of money for personal gain.

Investigations revealed that Valley Lodge is registered under the directorship of Ayoob Omar and Mohamed Hussein Omar, not the accused.

Since the alleged fraudulent takeover, the couple reportedly declared the company as a loss-making entity, prompting Galwex Investments to initiate the internal audit.

The audit revealed financial irregularities, with total losses estimated at ZWL137,736,500.