By A Correspondent| A Harare magistrate has thrown out an application for discharge filed by embattled businessman Michael Gordon Smith, who is on trial for allegedly defrauding MA Auto Suppliers of over US\$60,000 and R124,000.
Smith had sought to be cleared at the close of the State’s case, arguing that prosecutors had failed to present sufficient evidence to justify a trial. His lawyer, Takudzwa Nyambira, filed the application in May after several witnesses had testified and the State, led by prosecutor Anesu Chirenje, closed its case.
However, Magistrate Ethel Chichera ruled on Tuesday that the prosecution had established a prima facie case against Smith and that the trial must proceed.
Smith faces a slew of charges—12 counts of fraud, 25 counts of concealing transactions from his principal, and two counts of theft of trust property.
Smith is accused of orchestrating a series of fraudulent activities while employed by MA Auto Suppliers. Among the key allegations is that he, in collusion with a South Africa-based accomplice, Tony Oatley—now on the run—channeled company payments through a third-party company, Mant Procurement (Pvt) Ltd, which he co-owned.
Company director Mike Asher, who testified in court, said that after leaving for Australia in 2019 due to COVID-19 lockdowns, he returned to find that Smith had been using Mant Procurement to pay South African suppliers—an arrangement never disclosed to him or the company’s Finance Manager, Christine Vellah.
Investigations revealed that Mant Procurement overcharged MA Auto, resulting in financial prejudice exceeding R100,000.
Smith is also alleged to have used company resources to import goods for personal gain. In one instance, he reportedly sold two imported tents for US\$1,800, with payment deposited into his offshore account in the Isle of Man. The funds were never recovered.
In another case, Smith allegedly sold a Toyota Land Cruiser 78 series for US\$13,000 but only accounted for US\$5,500 in company records, pocketing the remaining US\$7,500. He also sold another company vehicle, previously given to his son, for US\$7,500 without remitting any proceeds.
Vellah testified that Smith obstructed accurate record-keeping by failing to submit complete financial data. She said company resources were used to cover personal expenses, including vehicle repairs for Smith’s children, which were offset against a personal loan.
She also accused Smith of arranging barter deals with clients, receiving luxury accommodation instead of cash payments, and inflating transportation costs to cover personal debts.
The finance manager said Smith took a US\$10,000 loan from Cruiser Bond (Pvt) Ltd without informing the company, which ended up repaying it without knowing how the funds were used. She also detailed how Smith instructed her to pay ZW\$295,200 in fees for a jointly owned boat when the company’s share was only ZW\$88,250—an excess he never repaid.
Smith also allegedly took company property including chairs worth R5,000 and a 95-liter fridge, all of which remain unreturned.
State witness and IT expert Takudzwa Honye told the court that he downloaded email data from MA Auto’s Microsoft account and printed emails at the request of the company. He validated the evidence in the presence of Vellah, Asher, and CID Commercial Crimes Division detective assistant inspector Samaneka.
Another witness, Anthony Norman Bown, testified that Smith instructed him to pay R77,122 for vehicle parts into the Mant Procurement FNB account instead of the official company account. Bown said he collected the ordered parts from MA Auto after being contacted by Smith.
Smith is expected to take the stand to defend himself against the mounting allegations. The case continues.