By A Correspondent| The trial of a Harare man Michael Smith, accused of defrauding MA Auto Suppliers trading as Mr Cruiser of at least US$38 000 and R124 000 resumed.
The State prosecutor Mr Anesu Chirenje has led testimony from two key witnesses.
Smith faces multiple charges, including two counts of theft of trust property, 12 counts of fraud, and 25 counts of corruptly concealing transactions from his principal, represented by Mr Michael Scott Asher, before Harare Magistrate Mrs Ethel Chichera.
The first witness, Sophia Mupariwa, a Customer Service Adviser at MA Auto Suppliers, testified about her former boss, Michael Gordon Smith.
Her responsibilities include attending to customer inquiries, receiving and booking in customer vehicles and inspecting vehicles and generating quotations and job cards among other things.
Mupariwa stated that from 2020 to 2022, Smith was employed as a director, overseeing daily operations.
During this time, several vehicles owned by Smith, his family, and friends were serviced at the company.
She alleged that Smith frequently ordered the release of these vehicles either without full payment or after partial payments, despite the company providing labor and parts for the services.
For instance in one case, a client with a Land Cruiser 100 Series was charged US$1 680 for seat covers but only paid US$850, leaving a loss of US$830 to the company.
On another occasion, Smith brought in his son’s Prado J95 for repairs costing US$1 378.46 but paid only US$600, leaving a balance of US$778.46 unpaid.
The second witness, Christine Vellah, Finance and Administration Manager at MA Auto Suppliers, detailed her role in maintaining financial records and ensuring fiscal compliance.
She testified that Smith managed company cash and would provide her with payment schedules, making it difficult for her to reconcile accounts due to incomplete information.
Vellah revealed troubling practices involving a company called Mant Procurement, in which Smith held a 50% stake.
This company allegedly siphoned money from MA Auto Suppliers without providing legitimate services.
For example, she noted an independent runner charged only 15% for transportation, but Smith inflated costs, hiding invoices to justify higher charges, leading to a loss exceeding R100 000.
Vellah recounted several other instances of alleged fraud.
On 9 November 2020, Smith received a US$10,000 loan from Cruiser Bond (Pvt) Ltd without informing her, resulting in the company having to repay the full amount without any record of its use.
In a sale of a Toyota Land Cruiser 78 series for US$13 000, only US$5 000 was recorded in company accounts, with Smith pocketing the rest.
Additionally, Smith reportedly took company property, including chairs valued at R4 786 and a 95-liter fridge, without ever making payment.
Vellah highlighted another instance where Smith instructed her to pay ZW$295 200 for fees related to a jointly operated boat, despite the company only being liable for ZW$88 250.
The remainder was Smith’s personal responsibility, which he never repaid.
Prosecutor Chirenje through Vellah tendered documentary evidence relating cash records , invoices, emails and bank statements that inscriminate the accused largely relating to count 1 to14.
Defence counsel Mr Takudzwa Nyambira raised an objecting arguing that some of the schedules which the witness was testifying to were not in order.
He also said he did not have some of the schedules thay were being refered to by witness but Mr Chirenje said it was not the duty of the State to put them in order since he served him with all the documents.
Mr Nyambira then consented to the admission of the said documents into the record.
The trial will continue on Monday, with Vellah testifying.