FIVE members of the Graniteside Industrial Cooperative in Harare are facing allegations of theft involving US$70 000 meant for expansion and development.
The accused, who held leadership positions in the organisation, reportedly misappropriated funds meant for land acquisition and infrastructural development.
They were granted US$100 bail each by Harare magistrate Isheunesu Matova pending routine remand on March 30.
Betserayi Simbarashe (53), Cephas Mandevani (54), Resania Muringi (47) and Artwell Maparura (51) are the cooperative’s committee members responsible for managing its affairs.
The fifth suspect, whose identity is yet to be confirmed, a vice-chairperson, is still at large.
Prosecutor Nomsa Kangara submitted that Graniteside Industrial Cooperative was established in 2015 by 26 entrepreneurs seeking affordable workspaces.
The court heard that each member contributed a US$50 joining fee, which was used to open a bank account and cover administrative costs.
The co-operative secured land through the Harare City Council, with members paying US$30 per month in rental contributions.
In 2022, the co-operative decided to expand by acquiring an adjacent piece of land.
Members were each required to contribute US$100 to fund land purchase and infrastructural provision such as roads, electricity and water installation.
However, instead of allocating the newly acquired land to existing members, the accused allegedly introduced 16 new individuals, charging them exorbitant fees ranging from US$1 000 to US$9 000.
According to Kangara, the accused misappropriated funds and failed to meet the co-operative's obligations to Harare City Council or develop the land. As a result, the co-operative fell into rental arrears, and no meaningful developments were undertaken.
The court heard that the scam came to light when old co-operative members noticed new individuals occupying land they had contributed funds to procure.
When questioned, the accused allegedly failed to provide satisfactory explanations, leading to investigations being instituted.
It was later discovered that all funds collected for expansion had been shared among the accused individuals, leaving the co-operative in financial distress.
Investigations revealed that the stolen US$70 000 was not recovered.
