Thursday , March 4 2021

Cottco trio up for $ 2 million fraud – Nehanda Radio

By Anesu Madiye

The cotton company in Zimbabwe (Cottco) was allegedly deceived at $ 2,212,613.37 by three of its senior staff, which has since been turned off.

Cotton companies in Zimbabwe (Cottco)
Cotton companies in Zimbabwe (Cottco)

Three – Pius Manamike (Acting Director), Brighton Chibhamu (Treasurer) and Lameck Machumi (Sales and Marketing Manager) – Before Harare Judge Rumbidzai Mugwagwa.

They released $ 500 each and return to court on December 7th.

It is alleged that in May 2017, the three actors jointly hatched a plan to defeat Cottco, an agro-industrial company dedicated to buying, processing and marketing cotton.

Managing Director Manamike and Treasurer Chibhamu signed an agreement with Cotton Pro Company to deliver a total of 8,000 tonnes of lint on a 90-day credit facility on May 30 last year.

They did this in violation of statutory instrument 150: 2008 in the Exchange Control Order which stipulates that all ribbon must be acquired by a customer through pre-financing.

The memorandum of understanding was taken to Ecobank for registration and the bank stated that it only processed documents for companies that had pre-financed and could not help Cotton Pro Company to secure a credit facility with them.

Between September 8 and October 12, 2017, the three were fully aware that they could not get cotton linen through Ecobank, distorted to the bank that they needed cotton liners to order for Devcote Louis Dreyfus and Mambo Commodities who had prefinanced the cultivation of cotton.

After receiving the release orders, the three further distorted to Socotec Collateral Securities staff founded at Gokwe, Kadoma and Sanyati Cottco deported that the cotton liner was intended to be exported to Devcote, Louis Dreyfus and Mambo Commodities.

The crime occurred after a review by the internal audit and risk department in Cottco and a report was made to the police which led to the trio being arrested.

As a result of the trio, Cottco suffered a real prejudice of $ 2,122,613.37 and only $ 707,249.31 recovered. Herald

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