The trial of Harare businessman, Michael Smith who is accused of defrauding MA Auto Suppliers trading as Mr Cruiser continued at the Harare Magistrates Court last week with the company owner tendering overwhelming evidence against the accused.
Smith is facing a litany of charges including theft of trust property, fraud and corruptly concealing transactions.
Businessman, Mike Asher representing MA Auto Suppliers, narrated how his former trusted Lieutenant Smith masterminded a plan with his accomplice in South Africa to defraud his company.
WhatsApp chats and voice notes retrieved by Police Cyber Unity were played before the court clearly revealing that Smith was the one behind fraudulent activities to dupe his employer.
Court heard that sometime in October 2019, Michael Scot Asher left for Australia and failed to return due to Covid-19 restrictions.
Upon his return, Asher discovered that the company was paying its South African suppliers through a third party called Mant Procurement [Pvt) Ltd.
Mant Procurement is incorporated in South Africa and involved Tony Oatley, his accomplice who is based there.
Smith had not disclosed this arrangement to Asher or the Finance Manager, Christine Vellah whom he was supposed to work closely with.
MA Auto Supplies later discovered that Mant Procurement was overcharging the company and as a result, they suffered prejudice in excess of R100 000.
In February 2021, Smith allegedly imported two tents using MA Auto Suppliers (Pvt) Ltd’s resources. He allegedly sold the tents to one Ms Horsley for US$1 800 and arranged for the pmnt to be made into his personal offshore account in the Isle of Man. No monies were recovered from the accused.
In October, Smith allegedly used the same modus operandi to import a Station Wagon Rear Bumper and RHS carrier and the customer paid R77112.00 directly into Mant Procurement (Pvt) Ltd’s FNB account.
On a separate date, Smith sold, on behalf of MA Auto, a Toyota Land Cruiser 78 series for US$13 000, only US$5500 was recorded in company accounts, with Smith diverting US$7500 to personal use.
Another Toyota Landcruiser belonging to MA Auto was allegedly sold to his Son Trevor Smith. Despite $5500 being outstanding on the vehicle Smith later sold the Landcruiser privately
for $7500 but never remitted any money to the company.
Other evidence tendered by Asher allegedly revealed that work done on Smiths son Russells vehicles were not paid to MA Auto but amounts offset against a personal loan arrangements which Smith had with his Son.
Mike Asher further tendered evidence revealing Smith did barter type deals with various customers whereby, instead of receiving payments from the customers but Smith allegedly arranged free nights at lavish resort camps for him and his wife.
The court has been presented with documents containing evidence of WhatsApp and Email communication of Smith’s alleged wrongdoing.
The trial has been postponed to April 30, 2025, for continuation with defense lawyer expected to cross examine Mike Asher.
Smith’s alleged fraudulent activities resulted in a huge loss for MA Auto Suppliers with estimates suggesting at least $38,000 and R124,000 was involved.
