By Munacho Gwamanda – A group of women who pooled their savings in a traditional mukando scheme has been rocked by allegations of fraud, with members losing a total of US$30,000.
The situation has left one member hospitalised after collapsing under the weight of financial loss and distress.
The savings club, organised by Ruthy Charlie Mufundisi and her associate Dunior Shahari, ran from January to December 2024. Members had anticipated sharing nearly US$30,000 at the end of the year, but instead, Mufundisi produced only US$1,200. One of the victims, identified as Edna, lost US$4,100 and has since taken the matter to the Harare Civil Court under the Small Claims division.
Court documents allege deliberate deception, with the plaintiff accusing the defendants of orchestrating the scheme to defraud participants. “The defendants have benefited out of nothing, which is clear lawlessness,” read part of the court papers. Edna claims repeated attempts to recover her money were ignored, forcing her to seek legal recourse.
Ruthy, however, disputes the allegations, arguing that she too struggled financially as a member of the club. “I acknowledged my debt and signed affidavits to pay back on agreed dates. This was not theft but a case of my financial difficulties,” she said. Ruthy insists that other members also owe money within the mukando system, a claim she says complicates the dispute.
Edna countered, saying red flags appeared when Mufundisi failed to provide financial statements during the scheme’s operations. “We demanded transparency, but she could not account for the funds. When the time came to share, she brought US$1,200 instead of the agreed amount,” Edna stated.
The case has attracted attention for shedding light on the vulnerabilities of informal savings schemes in Zimbabwe, where many turn to mukando as an alternative to formal banking. As trust erodes and legal action ensues, this story serves as a cautionary tale for those participating in unregulated financial arrangements.
The case continues today at Harare Civil Court.