Mnangagwa’s Son ‘Spartan Security Investments (Pvt) Ltd’ In US$1 Million Fraud Storm
President Mnangagwa’s son’s company has come under fire following revelation that one of the co-directors defrauded a woman off 1 million she had invested with the company.
Spartan Security Investments (Private) Limited which specializes in finance and securities related investments is owned by deputy minister of finance and investment promotion of Zimbabwe, David Kudakwashe Mnangagwa, Luka Ignatius Fabris, Charles Tafadzwa Chimbwanda and Edmund Nganunu.
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At one point, the Company bank accounts were frozen for illicit black market trading, shady deals which propel Zimbabwean currency instability.
Fabris is being charged in his individual role as a director, while Spartan Security Investments is the first accused.
The trial began yesterday in front of Mrs. Feresi Chakanyuka, the regional magistrate for Harare.
When the State brought complainant Leigh Ann Patricia Rudland, 53, to testify yesterday, she presented her main line of evidence.
She informed the court that Fabris’ brother had recommended her to him.
According to the State, in 2019, Fabris approached Ms. Rudland on behalf of his company and informed her that it was engaged in extremely profitable cattle ranching.
She claims that he persuaded her to invest in the company by promising to provide her two percent of her total investment each month.
On March 21, 2019, Rudland’s lawyers placed $4,800,000 into Fabris’ bank account per her instruction. Rudland had her money deposited with her lawyers.
The two concluded that, given the then-current bank rate, the money was worth US$1,000,000.
Rudland only received a total return of US$540 000 after making her investment, though, and Fabris stopped paying her dues and began making excuses for her.
Rudland apparently made multiple attempts to interact with Fabris, who turned evasive.
When she realised she had been tricked, she made the decision to report the incident to the police.
In his defence, Fabris contests the fraud accusation, saying he paid Rudland in full and cleared his debt.
He argues that there was no investment involved in the contract; rather, it was just an agreement between Ms. Rudland and Spartan to convert an electronic transfer of $4,8 million into $4,8 million in local currency cash, less a one percent fee from Spartan.
According to Fabris, Ms. Rudland was required to collect her cash in batches as per her instructions. By the time she received the last batch, however, the value of her money had decreased due to inflation, and the complainant began to demand compensation for the loss caused by inflation. The directors of the company declined to grant this request, citing the complainant’s unjust enrichment.
Fabris argued that since she had missed the filing deadline for a civil complaint, any disagreement about what she had gotten and what she had expected was therefore solely a civil matter.
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The complainant knows that this is a civil problem at most, that prescription has closed up all avenues of remedy in civil courts, and that this is why they are making this last-ditch effort to recover debt through the criminal justice system. A portion of his defence states, “It is an abuse of the court system and ought to be dismissed with the due contempt it deserves.”
Mr. Anesu Chirenje represents the State, and Mr. Joseph Nemaisa and Mr. Msindo Hungwe represent Spartan and Fabris.
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