Ex-town clerk’s $800k fraud case drags on

Source: Ex-town clerk’s $800k fraud case drags on – DailyNews Live

Tarisai Machakaire      2 June 2017

HARARE – Former Harare town clerk Tendai Mahachi appeared in court
yesterday for routine remand proceedings over a criminal abuse of office
charge involving $800 000 emanating from the time he served council.

He was represented by Tapson Dzvetero when he appeared before Harare
magistrate Barbra Chimboza, who ordered him to return to court on June 8
pending finalisation of the matter.

The former Harare City Council boss is also embroiled in a multi-million
dollar fraud scam in which he is accused of facilitating the awarding of
$32 million worth of tenders to unregistered companies to rehabilitate
sewerage plants at Firle and Crowbrough.

According to State papers, Mahachi was an ex-officio director of City
Parking (Pvt) Limited, a subsidiary of City of Harare.

The court heard that in January 2014, Mahachi allegedly used his influence
as town clerk and reportedly misrepresented to the city business committee
that Shelstein Enterprises Pvt Ltd (Shelstein) was in the parking
business, although he knew it was not.

It was alleged that Shelstein was then invited to make a presentation and
reportedly misrepresented that it was the southern region sole franchise
holder for Parx Global International (Parx), a company based in Israel
which is into manufacturing and supplying of parking management equipment
and software.

It is alleged they further misrepresented that they were able to provide
state-of-the-art parking management systems from Parx at no cost to City

According to State papers, on March 7 2014, Mahachi allegedly influenced
the signing of a Memorandum of Understanding between City of Harare –
represented by him – and Shelstein, represented by Withus Masunda.

On May 20 that same year, seven councillors and Shelstein – represented by
Tendai Matimba and Masunda – went to Israel for due diligence on Parx.

While in Israel, Matimba, through his company Cashless Payment
Technologies, entered into a Memorandum of Agreement of franchise as the
sole distributor in southern Africa for Parx Global Parking Management

The court heard that Mahachi also used his influence to recommend City
Parking to enter into a joint venture partnership with Shelstein, knowing
that the company was not in the said business, and that each partner
should contribute $800 000.

On October 29, City Parking allegedly transferred $800 000 into
Shelstein’s bank account.