Top doctor in US$260k fraud
CORPORATE rescue practitioner of Redwing Mining Company Cecil Hondo Madondo was yesterday dragged to court charged with fraud involving US$260 000.
Madondo (60) was not asked to plead when he appeared before Harare magistrate Ngoni Nduna.
He was remanded to today for the continuation of his bail application.
The complainant is Prodabek Investments represented by Patricia Mutombgwera.
The court heard that last year in July, Redwing Mine was placed under care and maintenance and Madondo was appointed to be the corporate rescue practitioner by the High Court of Zimbabwe.
Redwing Mine is in the business of mining, exploration and processing of gold for sale to Fidelity Printers and Refineries.
The State alleges that on October 15 2020, Madondo misrepresented to Mutombgwera and Grant Chitate that he has given Probadek exclusive rights in respect of Redwing Mining Company covering 132 gold mining blocks, eight copper mining blocks and any other mining venture belonging to Redwing and the three signed a joint venture and relationship agreement.
The three also registered a tribute agreement with the registrar of deeds as a notarial deed in order to operationalise their joint venture agreement.
Probadek reportedly paid corporate rescue fees to the tune US$60 000 and made a capital expenditure of US$200 000.
Madondo reportedly then prepared another memorandum of tribute to Prime Royal Pvt Ltd knowing well that he had ceded all mining rights to Probadek.
In December, Prime Royal and Betterbrands Mining took over the mine while the agreement with Probadek was still in existence.
Tinashe Makiya appeared for the State.