HARARE – The trial of Clark and Beverly Makoni, accused of fraudulently seizing control of former Reserve Bank of Zimbabwe (RBZ) Governor Gideon Gono’s company and misappropriating ZWL$137 million, continued on Friday with their defence team challenging the credibility of a key state witness. The couple have vehemently denied the allegations before regional magistrate Stanford Mambanje.
The state’s case hinges on the claim that the Makonis illicitly transferred ownership of Valley Lodge, Gono’s company, into their own names, subsequently siphoning off substantial funds for personal gain.
Lindiwe Sabeka, an internal auditor at Galwex, the company that purportedly uncovered the alleged fraud, took the stand as a state witness. She testified that her firm’s audit revealed financial irregularities, with the Makonis allegedly awarding themselves unauthorised salaries, a violation of real estate agent regulations. These funds, she claimed, were directly deposited into the couple’s bank accounts, amounting to ZWL$137,736,500, equivalent to approximately US$72,000. Sabeka further asserted that the audit unearthed company documents falsely identifying the Makonis as the rightful owners of Valley Lodge.
However, the defence, led by lawyer Admire Rubaya, launched a vigorous cross-examination, focusing on Sabeka’s qualifications and the validity of the audit report. Rubaya questioned Sabeka’s credentials as a certified auditor and her membership in the Association of Fraud Examiners, requesting proof of her professional legitimacy. Sabeka admitted that she had not brought any documentation to support her claims, prompting the defence to argue that her testimony should be treated with caution.
Rubaya further challenged the reliability of the audit report, highlighting what he described as a lack of primary evidence. He argued that such evidence was essential to “authenticate” the audit’s findings and allow the court to independently verify whether a crime had been committed.
Sabeka conceded that the audit report presented in court was merely “an extract of the main audit report,” which was available at their offices. She also admitted that some individuals involved in producing the document lacked formal auditing or accounting qualifications.
Further casting doubt on Sabeka’s testimony, Rubaya questioned her knowledge of the specific transactions in question. “Were you there when the payments were made? Do you know who authorised the transactions?” he asked, to which Sabeka responded, “No.”
Sabeka claimed that the couple violated their code of conduct as real estate agents by awarding themselves salaries varying from US$400 to US$1700 per month since January 2022 to September 2023 and that she had supporting evidence of bank statements in which accused were receiving salaries.
Rubaya pressed Sabeka to produce the alleged forged company documents she referred to or other documents to support her claims but failed saying it was only shown to her. “I do not have the CR14 which stated that the Makonis are now directors of Valley Lodge because Clark only showed it to me when were at Mutare Police Station where he had filed charges of unlawful entry against me,” she said.
Sabeka told the court that the audit was concluded without the side response from the Makonis since they refused to respond even via emails.
Rubaya dismissed Sabeka’s evidence as hearsay, pointing out that she was not employed by Galwex when the alleged events took place, as she was still working at the Zimbabwe Anti-Corruption Commission at the time.
Despite these challenges, Sabeka maintained that the Makonis had acted improperly. She testified that Clark Makoni, accompanied by his lawyers, had approached Galwex’s offices, seeking forgiveness and offering to repay US$50,000 to Gono for their actions.
The state alleges that in July 2017, Valley Lodge engaged the services of the Makonis to manage its properties. However, on August 10, 2017, the couple allegedly forged a CR14 form, appointing Clark as director and company secretary and Beverly as his deputy, without the knowledge or consent of the legitimate owners, Ayoob Omar and Mohamed Hussein Omar.
Armed with the allegedly forged CR14 form, the Makonis are accused of approaching ZB Bank Mutare, Valley Lodge’s bank, and falsely claiming to be the new shareholders, seeking to change the signatories to the company’s bank accounts. The state contends that the couple then fraudulently took control of Valley Lodge, gaining access to its bank accounts and misappropriating funds amounting to $137,736,500.
Since the alleged fraudulent takeover, the couple reportedly declared the company as loss-making, prompting Galwex Investments to initiate the internal audit.
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