Internal audit deemed admissible evidence in Gideo...

Internal audit deemed admissible evidence in Gideon Gono $137 Million Fraud

Philemon Jambaya

Zim Now Editor

The high-profile fraud trial of Clark Clever Makoni and Beverly Aisha Ndonda Makoni has taken a dramatic turn, with the admissibility of a crucial internal audit report now at the center of a heated legal battle. The couple stands accused of defrauding Galwex Investments (Pvt) Ltd, owned by former Reserve Bank of Zimbabwe Governor Dr. Gideon Gono, of ZWL$137 million, all through a sophisticated scheme involving the fraudulent takeover of the company's Valley Lodge property in Mutare.

The trial, which resumed on Friday, saw Lindiwe Sabeka, an internal auditor from Galwex, take the stand. Sabeka, armed with an Honours degree in Accountancy and a Diploma in Forensic Accounting, testified to the findings of an internal audit she conducted alongside two colleagues in 2023. The audit, commissioned by Dr. Gono to assess the operations of Valley Lodge, reportedly revealed "serious irregularities" that ultimately led to the Makonis' arrest.

At the heart of the dispute is the validity of this audit report. Prosecutor Heather Muwokoto sought to introduce the report as key evidence, asserting its authenticity and highlighting Sabeka's role in its creation. However, the defense, led by prominent lawyer Admire Rubaya, vehemently objected, arguing that the report was inadmissible.

Rubaya's objection hinged on the fact that the audit report was not authored or stamped by a certified public auditor, citing regulations from 1997 and 2016 that mandate such certification for reports intended for external use. He further challenged Sabeka's qualifications, demanding physical proof of her credentials.

The courtroom became a battleground for legal arguments, with both sides presenting spirited defenses of their positions. The state, recognizing the gravity of the defense's objection, requested time to file a written response, prompting the court to adjourn the matter until March 14.