Four suspects in court over US$70k theft in cooperative scandal

Source: The Herald – Breaking news.

 Four suspected conmen Betserayi Simbarashe, Cephas Mandevani, Resania Muringi and Artwell Maparura, who allegedly collected rentals at Mbare Musika and failed to remit, arrive at the Harare Magistrates Court on Monday

Court Correspondent

FOUR people accused of embezzling funds from a co-operative at Mbare Musika in Harare have appeared in court facing allegations of misappropriation of public funds.

The suspects – Betserayi Simbarashe, Cephas Mandevani, Resania Muringi, and Artwell Maparura – were brought before magistrate Mr Isheunesu Matova, who granted them bail of US$100 each.

According to the State, the case dates back to 2015, when a group of 26 individuals came together to form the Graniteside Industrial Co-operative. The co-operative was established with the aim of acquiring land to create sustainable economic opportunities for its members, in an effort to combat poverty.

To ensure proper governance, the group drafted a constitution that outlined its operations and legal framework. The co-operative was officially registered with the Ministry of Small and Medium Enterprises.

As part of its initial operations, members were required to pay a US$50 joining fee, which was meant to cover initial expenses and open a co-operative bank account.

The co-operative successfully secured a piece of land in Graniteside, Harare, through a lease agreement with the Harare City Council (HCC). The lease was renewable every five years. Members were then required to pay monthly contributions of US$30 to cover rental payments to the HCC.

The land was subdivided into smaller plots allocated to members for work purposes. At the end of each month, members contributed the agreed-upon rentals, which were to be deposited into the cooperative’s bank account and used for operational expenses.

In 2022, the cooperative resolved to expand its operations by acquiring an additional piece of adjacent land. Members were required to contribute an additional US$100 each to facilitate the purchase of the new land and fund developmental projects such as road servicing, electricity installation, and water reticulation systems. However, the State alleges that instead of using the funds as agreed, the accused acting in connivance devised a scheme to embezzle the money.  They reportedly brought in 16 new, unidentified members who paid exorbitant joining fees, ranging from US$1 000 to US$9 000 each. The funds collected from both existing and new members were allegedly shared among the accused.

Furthermore, they failed to develop the newly acquired land or pay rentals to the HCC, leaving the cooperative in arrears and with no meaningful progress on the various projects.

The alleged fraud came to light when original members of the cooperative discovered new individuals occupying the additional land they had collectively paid for.

The total amount stolen is estimated to be US$70 000. Ms Nomsa Kangara appeared for the State.