By Staff Reporter
The Gauteng High Court in Pretoria has granted a final sequestration order against the estate of a Zimbabwean accountant who defrauded a Johannesburg-based non-profit organisation, the Education and Training Unit (ETU), of millions of rand.
Edward Mwanandimai, who worked as an accountant at ETU between July 2014 and May 2020, was found to have misappropriated funds meant for the South African Revenue Service (SARS) and other suppliers.
According to court papers, he redirected payments to his personal accounts and those of his company, Lopdale Services and Investments.
The fraudulent activities reportedly began in January 2015 and continued until April 2020, involving 384 illegitimate transactions.
An internal audit revealed that between August 2015 and December 2019, Lopdale received R14.65 million, while additional funds—including medical aid contributions, cellphone bills, and debit orders—were unlawfully settled by ETU without recovery from his salary.
Mwanandimai also created false supplier accounts and a fictitious employee to further channel funds.
By the time irregularities were detected by a newly hired accountant, ETU had lost more than R17 million.
In September 2020, Mwanandimai signed an acknowledgment of debt confirming that he owed ETU R6.79 million, although the total amount misappropriated exceeded this figure.
While he initially made partial repayments, he later defaulted, citing financial challenges linked to the Covid-19 pandemic and the July 2021 unrest.
Despite offering to settle R10.9 million over 72 months in 2021, he failed to make payments beyond June of that year. The outstanding debt now stands at R17.1 million.
In her ruling last week, Acting Judge Sanet van Aswegen said Mwanandimai had failed to manage or disclose his estate transparently and only provided supporting documents during the hearing.
She ruled that sequestration was in the best interests of creditors, allowing for an investigation under the Insolvency Act.
ETU lodged a fraud case with Yeoville police in September 2020.
Mwanandimai’s legal representative did not respond to requests for comment, and attempts to reach ETU were unsuccessful.
Source – IoL
