Michael Smith In Hot Soup As Witnesses Detail Fraud, Financial Misconduct

The trial of Michael Smith, accused of defrauding MA Auto Suppliers, operating under the name Mr Cruiser, of approximately US$38,000 and R124,000, has resumed, with the State presenting testimony from two key witnesses.

Smith is facing multiple charges, including two counts of theft of trust property, 12 counts of fraud, and 25 counts of concealing financial transactions from his employer. He is being tried before Harare magistrate Ethel Chichera, with Mr. Michael Scott Asher representing the complainant.

The first witness, Sophia Mupariwa, a customer service advisor at MA Auto Suppliers, testified about her former employer. Her duties included handling customer inquiries, processing vehicle bookings, conducting inspections, and preparing quotations and job cards.

Mupariwa stated that between 2020 and 2022, Smith, who served as a director, oversaw daily business operations. During this period, she alleged, several vehicles belonging to Smith, his family, and friends were serviced at the company but were released either with incomplete payments or no payments at all, despite the business providing labor and spare parts.

She cited one instance where a customer with a Land Cruiser 100 Series was billed US$1,680 for seat covers but paid only US$850, resulting in a shortfall of US$830. In another case, Smith’s son’s Prado J95 was repaired for US$1,378.46, but only US$600 was paid, leaving a balance of US$778.46.

Christine Vellah, the second witness and the company’s finance and administration manager, testified about her role in managing financial records and ensuring compliance. She explained that Smith controlled company funds and provided payment schedules, but his incomplete financial records made reconciliation difficult.

Vellah further alleged that Smith was involved in questionable financial dealings with a company called Mant Procurement, in which he had a 50% ownership stake. According to her, this company siphoned funds from MA Auto Suppliers without delivering any legitimate services. She cited a case where a standard transportation service charged only 15% in fees, but Smith inflated the costs and concealed invoices, leading to a loss of over R100,000.

Vellah also provided details on additional alleged fraudulent activities. She stated that on November 9, 2020, Smith took a US$10,000 loan from Cruiser Bond (Pvt) Ltd without informing the company, leaving it to cover the repayment without any record of how the money was used.

In another instance, a Toyota Land Cruiser 78 Series was sold for US$13,000, but only US$5,000 was recorded in the company’s books, with Smith allegedly keeping the remainder. Additionally, he was accused of taking company assets, including chairs valued at R4,786 and a 95-liter fridge, without making payments.

Vellah further alleged that Smith instructed her to pay ZW$295,200 in fees for a jointly owned boat, even though the company was only liable for ZW$88,250. The remaining amount, which was Smith’s responsibility, was never repaid.

Prosecutor Chirenje submitted documentary evidence, including financial records, invoices, emails, and bank statements, supporting the allegations for charges 1 through 14.

Defense attorney Takudzwa Nyambira objected to some of the documents, arguing that certain financial schedules presented by the witness were not properly organized. He also claimed that some of the referenced schedules had not been provided to him. However, Chirenje countered that the State had already supplied all relevant documents, and it was not their responsibility to organize them for the defense.

Nyambira later agreed to the inclusion of the documents in the trial record. The proceedings continued with Vellah’s testimony, and the case is set to resume on March 25 for cross-examination by the defense.