Ex-Redwing Mine Corporate Rescue Practitioner Cleared

Blessing Masakadza

 

FORMER Redwing Mine corporate rescue practitioner Knowledge Hofisi is now a free man after a
regional magistrate cleared him of allegations of fraud and concealing a transaction from a principal
emanating from a US$17 000 payment.

Hofisi was being charged with two counts of fraud and a count of corruptly concealing a transaction
from a principal, allegations he denied when the trial opened before Harare regional magistrate
Marehwanazvo Gofa.

The corporate executive had to defend himself from allegations raised by one Patricia
Mutombgwera and Stanley Motto who were complainants in the court matter.

The two had alleged that they paid US$7 000 to Hofisi for the purposes of registering a new
company yet he bought a shelf company contrary to what they had agreed.

However, the allegation failed to sustain and the magistrate ruled that the witnesses were not
honest with the court.

This is after it emerged that the money was paid to lawyer Listen Zinyengere and not to Hofisi as had
been alleged.

Hofisi was also accused of fraudulently preparing a joint venture mining agreement involving
Probadeck, Duatlet and Betterbrands.

The court stated that during the trial, it emerged that their lawyers had drafted the agreement and
not Hofisi as has been alleged.

Further allegations were that Hofisi received US$10 000 without revealing it to the Master of the
High Court who appointed him corporate rescue practitioner.

Hofisi represented by Admire Rubaya applied for discharge at the close of the State’s case arguing
that there was nothing criminal about the allegations but that it was a purely civil matter.

He also argued that Hofisi was not an agent of the Master of the High Court and that the master was
even happy with his performance despite the allegations.

It was further argued that the alleged US$10 000 was not the full amount which warranted
disclosure.

“There is no employment contract between the Master and the accused person but the accused’s
duties are set out in the Insolvency Act. Thus, an independent corporate rescue practitioner cannot
with respect be adjudged to be an agent of the Master of the High Court in the circumstances.

“In terms of the signed agreement in question the accused was actually entitled to be paid 3% of 3
million dollars which was supposed to be paid within seven days. This means that the parties had in
actual fact agreed that the accused was to be paid $ 90,000.00 within 7 days from the date of
signing.

“The payment was made in the sum of US $10,000 which is less than $US 90,000 which was the
agreed fee. . . then in reality and at law, there was no need for the Master of the High Court to be
informed before the accused could receive such a payment,” he argued.

The presiding magistrate said the state had failed to prove a case against Hofisi stating that from
what had been presented, he could not be convicted, adding that the complainant, Mutombgwera
confirmed all she was denying during her testimony.

The court also indicated that state witnesses, the lawyer Zinyengere and the Master of High Court all
exonerated Hofisi from wrongdoing.