Source: Varun trial exposes currency conversion scheme -Newsday Zimbabwe
THE trial of two former Varun Beverages employees accused of defrauding the company of US$305 790 continued with the second witness revealing that one of the accused persons introduced other route agents to a secretive currency conversion scheme, unknown to the company.
Kundai Sibanda claimed during cross-examination that Elvis Muzvidziwa (33) allegedly told her and other colleagues that he could convert their US dollar proceedings to RTGS before depositing them into the company’s account.
Muzvidziwa was employed by Varun Beverages as a driver while his co-accused Vitalis Masikati (32) was an assistant accountant.
Sibanda, a sales route agent at Harare depot, appeared before Harare regional magistrate Estere Chivasa.
In her statement as a witness, she said sales targets became difficult to meet from June 23 last year due to customer complaints about product pricing.
“I realised that sales targets were getting hard to meet since customers were complaining that the company’s price of US$$7 was too high yet it was winter and they were requesting if we could charge US$$6,50,” she said.
Sibanda also testified that she was facing a lot of competition from other sellers whose prices were low.
“I was facing stiff competition from distributors who were also servicing that same market with lower prices and I was also having pressure from my superiors to meet my daily sales target of 350 cases of drinks per day,” she said.
During the period, Sibanda said, Muzvidziwa allegedly told her that she could reduce the pricing in US dollars to US$6,50.
The court heard that the deal ran from June 23 to July 5, 2023.
It is alleged that Masikati and Muzvidziwa conspired to defraud Varun Beverages of US$305 790 between June 1 and July 6 last year.
Muzvidziwa allegedly collected sales proceeds from various agents, promising to deposit the funds into the company’s Zimbabwe dollar (System Applications and Products) SAP account.
Instead of depositing the money into the company’s SAP account the two allegedly shared the money and posted fake figures totalling ZWL $1,829 799 989 into the SAP account.
An external audit conducted by Crowe Chartered Accountants exposed the discrepancy leading to their arrest.
Masikati led police to his residence, where US$76 804, a laptop and SAP ID were recovered.
Further investigations revealed that route agents gave US dollars to Muzvidziwa, who hid US$23 007 in his wardrobe.
It was further revealed that Masikati purchased a Toyota Hiace Van worth US$7 000 and a Toyota Axio worth US$8 800.
The two vehicles were seized by police.
The two are, however, pleaded not guilty to the charges.
COMMENTS