Deregistered Capital Profit Financial Services (Pvt) Limited and its director Taitus Tapiwa Madzara denied charges of illegally dealing in foreign currency on the parallel market when the trial opened at the Harare Magistrates Court.
Madzara, who is charged in his personal capacity and representing his company, told the court that he never dealt in illegal foreign currency and his company had been deregistered months before the arrest.
Through his lawyer, Mrs Tendai Rusinahama, Madzara and his company said they were only involved in EcoCash cash-in and cash-out transactions using bulk agent lines for a commission from the service provider.
“The accused denies the allegations in total, in particular, he denies ever dealing in forex as alleged by the State. The State is put to the strict proof thereof. The accused will state that accused 1 (Capital Profit Financial Services (Pvt) Limited) is no longer in existence after being struck off from the companies register in 2021 before the arrest.
“Accused’s company was a registered mobile bulk payer and as such when it was in operation, it would receive large volumes of amounts from different clients with instructions to make scheduled payments.
“It also provided cash-in and cash-out facilities. Accused 1, in its operations would form various agent accounts for cash-out from Ecocash to bond notes amongst other various activities. Accused would then receive commissions from service provider and clients,” said Mrs Rusinahama.
Mrs Rusinahama told the court that Madzara was only a director who was never seized with handling the said transactions.
She said Madzara employed people who would manage the agent lines.
“Accused 2 (Madzara) was one of the directors of 1st accused. He was never involved in any form of forex dealings either through 1st accused or in his personal capacity.
“He never used to work from 1st accused office neither did he operate company agent lines personally.
“The company had employees who were managing the agent lines from the office. As such, if the said employees could have transacted illegally, they could have done so without the knowledge or authority of its directors and such acts could easily remain undetected by the directors,” she said.
The State led by Mr Whisper Mabhaudhi and Mr Garudzo Ziyaduma had it that Capital Profit is a duly registered company in accordance with Zimbabwean law but had no license issued by the Reserve Bank of Zimbabwe (RBZ) to deal in foreign currency.
It was further said that the company had two directors, according to its registration documents kept at Registrar of Companies and was involved in buying and selling of general goods and groceries.
Madzara is alleged to be the one who was authorising transfers of money from his company’s corporate account to the Ecocash bulk payer lines.
It is alleged that with Madzara’s instructions, funds were transferred from Steward Bank corporate account into various Ecocash bulk payer lines.
The court heard that Madzara transferred a total of $5 955 011, violating sections of the Exchange Control Regulations SI 109/1996.
Harare regional magistrate Mr Taurai Manwere presided. – Herald