Varun Beverages employees US$300k fraud case trial resumes
Harare- THE trial of two former Varun Beverages employees, Elvis Muzvidziwa and Vitalis Masikati, accused of defrauding the company of $305 790, has resumed before Harare magistrate Estere Chivasa.
The sales route agent Kundai Sibanda testified that Muzvidziwa, a former driver, introduced her to a secretive currency conversion scheme, unknown to the company.
Sibanda told the court that at some point in June last year sales targets became difficult to meet, due to customer complaints about product pricing.
The company’s price of US$7 was too high yet it was winter and they were requesting if they could charge US$$6.50.
She further stated that she was also facing a lot of competition from other sellers who had lower prices yet her superiors were demanding her to meet her daily sales target of 350 cases of drinks per day.
Sibanda told the court that it was during that period that Muzvidziwa told her that she could reduce the pricing in US$ to US$6.50.
Sibanda alleged Muzvidziwa offered to convert her US dollar sales to RTGS, allowing her to meet sales targets despite customer complaints about pricing.
“I took Muzvidziwa’s advice and I would sell the company’s product at a reduced price of USD$6.50 and then surrender part of daily US$ cash sales from the undercharged products only to him so that he would convert them into RTGS sales and then help me settle my account in full.”
Prosecutor Ngoni Kaseke alleges Muzvidziwa and Masikati, an assistant accountant, conspired to defraud Varun Beverages between June 1 and July 6, 2023. They allegedly shared the money and posted fake figures into the company’s SAP account.
Investigations revealed US$76 804, a laptop, and SAP ID were recovered from Masikati’s residence.
He also purchased two vehicles worth US$15 800.
Muzvidziwa hid US$23 007 in his wardrobe
Both accused pleaded not guilty.
Masikati claims the US$80 000 found at his residence belongs to him, while Muzvidziwa denies involvement in financial transactions, stating the seized money came from family projects.
