Auditor testifies against couple accused of swindling Gideon Gono of ZWL$137m

HARARE – A state witness testifying against Beverly and Clark Makoni, who are accused of embezzling ZWL$137 million from former Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono, resumed with her evidence in chief on Friday.

The auditor, Lindiwe Sabeka, summoned to substantiate the claim that the Makonis fraudulently acquired Gono’s funds by altering his company’s ownership, faced scrutiny regarding her credentials, as she lacked documentation to verify her status as a qualified auditor.

She told the court that she was a qualified auditor but did not bring her qualifications since she was never requested to do so by the State.

During cross-examination by lawyer Admire Rubaya, she conceded that the audit report generated by her firm was deficient in primary evidence.

“What we have submitted is just an extract of the main audit report which is available at our offices,”she said.

The defence said primary evidence “authenticate” the findings of the audit and also allows “the court to independently verify whether an offence was committed or not.”

Sabeka averred that the money had been misappropriated as salaries to the two against the provisions of real estate law.

“Were you there when the payments were made? Do you know who authorized the transactions? Rubaya asked her to which she responded “No”.

Sabeka told the court that the couple violated their code of conduct as real estate agents by awarding themselves salaries varying from US$400 to US$1700 per month since January 2022 to September 2023.

She emphasised that they were only supposed to get a commission.

Sabeka said she had supporting evidence of bank statements in which accused were receiving salaries.

Sabeka was asked to produce the alleged forged company documents she referred to or other documents to support her claims but failed saying it was only shown to her.

“I do not have the CR14 which stated that the Makonis are now directors of Valley Lodge because Clark only showed it to me when were at Mutare Police Station where he had filed charges of unlawful entry against me ,” she said.

Sabeka told the court that the audit was concluded without the side response from the Makonis since they refused to respond even via emails.

Her evidence was described by the lawyer as hearsay evidence as the alleged events took place while she was still working at the Zimbabwe Anti-Corruption Commission.

She told the court that although she was not yet part of Galwex company when the Makonis were given a contract she was present when Clark in the company of their lawyers came to their offices asking for forgiveness and wanted to pay back US$50 000 to Dr Gono for what they had done.

The allegations are that 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 its legitimate owners.  

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

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

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

The audit uncovered financial irregularities, with a total prejudice estimated at ZWL$137 736 500.