Binga Council Official Denied Bail in US$108,093 Fishing Rigs Fraud Case

By Simba Zimunya

A senior Binga Rural District Council official has been denied bail in a fraud case involving the alleged diversion of US$108,093 intended for a Government-funded fishing rig construction project.

Lovemore Siamuyi, the council's executive officer for social services, appeared before Binga magistrate Mr Makhelo Ncube facing allegations linked to a fishing rig fabrication programme introduced by the Office of the President and Cabinet (OPC) in 2021.

The Herald reports that the magistrate dismissed Siamuyi's bail application after the State, represented by Mr Quiet Mpofu, opposed his release.

Siamuyi, who was represented by lawyer Mr Givemore Mvhiringi, was remanded in custody until November 26.

US$108,093 Allegedly Diverted

According to the State, the case centres on a project established to manufacture 21 kapenta fishing rigs in Binga, with Binga Rural District Council appointed as the implementing authority.

The council was reportedly instructed by the Ministry of Local Government and Public Works to identify companies to manufacture the fishing rigs.

Prosecutors allege that council chief executive officer Joshua Muzamba bypassed procurement procedures by approaching Binga North legislator Chineka Muchimba to source suppliers without going through a tender process or obtaining an exemption from the Procurement Regulatory Authority of Zimbabwe (PRAZ).

Muchimba allegedly approached three companies, presenting himself as a Government-appointed project coordinator responsible for facilitating the release of funds.

The companies named as complainants are Lweendo Ndulamfu Fisheries (Pvt) Ltd, Twiite Cooperative Society and Zangalili Investments.

Initial Payments Made to Contractors

The State alleges that representatives of the three complainants were invited to the OPC offices at Munhumutapa Building in Harare in September 2021 to finalise contracts and receive initial payments.

Each complainant allegedly received US$15,250 in cash to construct five fishing rigs, while Muchimba received US$30,500 on behalf of two companies linked to him.

The court heard that the contractors were instructed to undertake the work collectively at premises belonging to Muchimba.

Although the first batch of fishing rigs was reportedly completed, the funds were exhausted, leaving no surplus as profit.

Personal Account Allegedly Used to Channel Project Funds

Prosecutors further allege that Siamuyi, Muzamba and Muchimba later told the complainants that Government had directed that all subsequent project payments be channelled through Muchimba's personal Nostro account because the companies did not have their own Nostro accounts.

The companies were allegedly persuaded to sign affidavits authorising the arrangement.

The State claims that the OPC subsequently released a further US$108,093 on behalf of the complainants on several occasions, without their knowledge.

According to the prosecution, the money was channelled through Muchimba but diverted for purposes other than paying the intended beneficiaries.

The three complainants allegedly suffered financial prejudice amounting to US$108,093.

Case Involves Multiple Accused Persons

Siamuyi is alleged to have acted in connivance with Muzamba and Muchimba in the alleged scheme.

The allegations are yet to be tested in court. The denial of bail does not amount to a finding of guilt, and the accused persons remain entitled to the presumption of innocence.

Siamuyi is expected to return to court on November 26 as the matter proceeds.