Banket farmer and businessman Cecil Muderede (39), who was involved in an adulterous affair which nearly cost him his company, was yesterday acquitted on fraud charges by a regional court.
Muderede’s wife, Michelle Fadzai (35) who was being prosecuted for the same charge, was also acquitted.
In her ruling regional magistrate Memory Chigwaza said: “Accused one and two (Muderede and his wife Michelle Fadzai) are legally married while accused one got involved in an adulterous relationship with first witness (Helen Matiashe).
Muderede and his wife were arrested after Matiashe reported the couple to police claiming it applied for a loan from Metropolitan Bank using bonds registered in the name Helce Enterprises, a company which she claimed belonged to her.
The magistrate said it was unfortunate for Fadzai to be “dragged into all this and ended up being prosecuted because of the adulterous relationship between accused one and the first witness which obviously did not end well”.
Matiashe had earlier told the court that during her relationship with Muderede she was given a company called Drisdane Investment as a gift and she held 95% shares while her brothers Kudzai and Kumbirai owned the remaining 5%.
The court heard sometime in 2006, Muderede and Matiashe acquired a company, Helce Enterprises, but during the period of Muderede’s specification, when he faced criminal charges, Matiashe removed him from directorship and appointed her two brothers.
“In terms of the Companies Act, shareholding in a company is proven by a share certificate, certificate of transfer of shares, stocks and debentures and accused one, whom she alleges made the donation, vehemently denied having made such a donation,” Chigwaza said.
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“By her own admission, Matiashe admits she does not have anything acceptable to prove that she is a shareholder of Drisdane Investment.”
The magistrate said since Matiashe failed to comply with provisions of the Companies Act when she appointed her brothers directors, such appointment were null and void.
“It also follows that any resolution made by Kumbirai and Kudzai on behalf of Helce Enterprises was null and void and the resolution the State is standing on is a nullity, therefore, no case can stand on a legal nullity,” the court ruled.
Muderede was represented by Musindo Hungwe, while the State was represented by Obi Mabahwana.
