TWO Zimbabwean businessmen were on Saturday last week arraigned before the courts for allegedly duping a Bulgarian investor of US$200 000 after persuading him to invest in their Guruve-based mining business.
Barnabas Kavai and Ashley Makara appeared before Harare magistrate Marehwanazvo Gofa facing a charge of fraud.
Gofa released them on US$200 bail each and they are set to return to court on October 30 this year.
The complainant is Adam Markov (32), who is in Zimbabwe as an investor in the agricultural sector.
Prosecutor Mercy Masamvi told the court that on February 12 this year, Markov arrived in Zimbabwe on Kavai’s invitation to explore investment opportunities in the country.
Masamvi said Markov was introduced to Makara who was presented as the owner of Crown Mine, a gold mine in Guruve.
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Kavai and Makara allegedly informed Markov that they were struggling financially and were seeking investment to sustain the mine and increase production.
They allegedly told Markov to invest US$200 000 in Crown Mine, adding that he would be incorporated in the mine as a partner receiving the equivalent valuation of 4kg of gold after four months as return on investment.
The court heard that as a partner, Markov was supposed to receive 30% of the net profit from all mining operations, while assuming directorship in Kavai’s KPM (Pvt) Ltd.
On February 15, Markov along with Kavai, Makara and Eleazar Tamiriraishe Malomba, the contractor of Crown Mine, went on a tour of the mine.
Markov allegedly went back to Bulgaria and returned to Harare on February 23 and gave Makara US$10 000 to settle mining registration fees.
On February 20, Markov allegedly transferred the equivalent of US$170 000 from his crypto wallet and gave another US$20 000 to Makara.
The court heard that Makara used the money to settle mining debts before buying shovels, uniforms, boots, compressors, water pumps, a bow mill and protective clothing to be used at the mine.
Masamvi also told the court that through his company, Amadiz Global Solutions, Markov bought a JCB 524 for US$35 000 from South Africa.
In June this year, Markov reportedly asked Kavai and Makara for his return on investment and he was allegedly threatened with deportation as he was on a tourist visa.
Kavai and Makara allegedly banned Markov from visiting the mine in Guruve.
Masamvi told the court that four State witnesses had their statements recorded and will testify in court.