Auditor testifies in Makoni couple ’s fraud case

Harare- THE trial of the controversial and fraud accused couple Clark Clever Makoni and Beverly Aisha Ndonda Makoni, who stands accused of defrauding Dr Gideon Gono’s company, Galwex Investments (Pvt) Ltd, of ZWL$137 million, resumed on Friday with a new witness testifying.

The couple stands accused of fraudulently altering the ownership of Valley Lodge, registering the property in their names, and subsequently siphoning millions from the company’s bank account for personal use.

During the proceedings, Prosecutor Heather Muwokoto led evidence from Galwex’s internal auditor, Lindiwe Sabeka, who outlined the findings of an internal audit that uncovered the alleged irregularities.

Sabeka, an internal auditor with an Honours degree in Accountancy and a Diploma in Forensic Accounting, introduced herself as a full member of the Institute of International Auditors.

She testified that the accused were contracted by Galwex to manage Valley Lodge as estate agents.

“In 2023, I was assigned by Dr Gono, along with two colleagues, Mitchel Muomba and Mitchel Kogogo, to conduct an audit and assess the operations of Valley Lodge,” Sabeka said.

She revealed that their audit uncovered serious irregularities, which led to the arrest of the Makonis.

The State sought to submit the audit report as evidence, arguing that its authenticity was undisputed and that it was being presented by one of its authors.

However, the defence lawye Admire Rubaya objected to the audit report’s submission, arguing that it was inadmissible because it was neither authored nor stamped by a certified public auditor.
He cited regulations from 1997 and 2016 that require certified public auditors to submit audit reports for external use.

Rubaya also pointed out that Sabeka had not provided physical proof of her qualifications, further questioning the validity of the report.

The court heard spirited arguments from both sides, prompting the State to request time to file a written response to the objection.

Both parties agreed to defer the matter to March 14, when the court is expected to rule on the admissibility of the audit report.

The trial will also continue on that date.

According to the State, on October 30, 2009, Costic Investments (Pvt) Ltd sold all its shares in Lizack and Valley Lodge to Galwex Investments (Pvt) Ltd.

In 2017, Dr Gono entrusted the accused couple, through their company Ark Properties, to manage Valley Lodge in Mutare.

However, the State alleges that the pair devised a scheme to fraudulently seize ownership of the property.

On August 10, 2017, Clark Clever Makoni 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.

Using the fraudulent CR14 form, the couple allegedly gained 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, 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 findings revealed financial mismanagement and irregularities, estimating a total prejudice of ZWL$137 736 500.