Source: Sugar millers sue ex-executive members for US$4m | The Herald 05 OCT, 2019
Fungai Lupande Senior Court Reporter
Zimbabwe Sugar Milling Industry Workers’ Union (ZSMIWU) is suing its former executive members for close to US$4 million at the High Court, after membership subscriptions were allegedly stolen before an office was set on fire to destroy evidence.
Addmore Hwarare, who was the secretary general; Tongaat Hullett human resources executive Freddy Nyangwe, ZSMIWU former president Simbarashe Nyemba and Kariboni Nyemba are cited as respondents.
ZSMIWU wants Hwarare, Nyangwe and Simbarashe to pay back the stolen subscriptions amounting to US$3 371 655 plus 5 percent interest per annum from 2014.
The organisation is also seeking an order compelling Hwarare and Nyangwe to repay their personal loans US$268 996, 30, plus 5 percent interest per annum from February 25, 2015.
Hwarare, Simbarashe and Kariboni are also required to pay US$200 000 plus interest from the date of summons for the property destroyed by the fire.
Between 2000 and 2015, Hwarare was the secretary general of ZSMIWU. His income exclusively consisted of membership subscriptions deducted from members’ salaries.
“Nyangwe was responsible for remitting membership subscriptions to ZSMIWU’s bank account,” reads the summons. “Hwarare, Nyangwe and Simbarashe connived and deposited subscriptions into Hwarare and Nyangwe’s bank accounts.”
The money was also deposited into other people’s bank accounts, totalling US$3 371 665,10.
According to the summons, Nyangwe and Simbarashe took out loans amounting to $268 996,30 with Fidelity Life Financial Services Assurance and fraudulently represented ZSMIWU as the borrower.
The loans were for their personal benefit and ZSMIWU repaid them.
In order to destroy evidence of the fraud, Nyangwe and Simbarashe allegedly connived with Kariboni to set ZSMIWU’s office on fire on January 21, 2015, read the papers.
Kariboni’s cell phone was recovered at the crime scene.
The offices were burnt down causing damages worth US$40 000.
Kariboni confessed to the arson and implicated Hwarare and Nyangwe.
“Despite demand, the defendants have denied, refused and or neglected to return the stolen money and make good the damages suffered by ZSMIWU,” the summons read.