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National Foods loses goods to fraud


NATIONAL Foods Limited is up in arms with a local wholesale dealer, Utete Brothers P/C, over a $94 000 debt after the latter, through its officials, allegedly fraudulently purchased goods for resale.


National Foods cited Elphias Utete, Machinda Shonhiwa, Wellington Mfokozana and Martin Yanganani as other defendants in the court application.

According to the food manufacturing company, sometime between December 2010 and 2011, the four defendants, acting in connivance, allegedly made fictitious entries in the National Foods sales accounting system purporting to be credit notes in favour of Utete Brothers.

The company claims it subsequently supplied goods on account to Utete Brothers amounting to $94 485 acting on the alleged false information.

As a result of Utete Brothers’ failure to settle the debt, National Foods said it had now approached the High Court seeking an order declaring Utete’s immovable property, stand 8902 Glen View, to be executable in order to recover the debt.

According to National Foods, it entered into a credit facility agreement with Utete sometime in 2009 whereupon the latter furnished the manufacturing company with title deeds for the Glen View property as surety in the event of non-payment by Utete Brothers.

It is alleged at all material times Shonhiwa, Mfokozana and Yanganani were National Foods employees until they were dismissed from employment on acts of serious misconduct.

“During that period the defendants colluded and connived to defraud National Foods of payment of the said goods through a manipulation of the company’s system in terms of which Shonhiwa, Mfokozana and Yanganani would raise fictitious and fraudulent credit notes signifying the return of goods or change of prices when
in fact the goods would not have been returned,” National Foods said.

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