CMED (Pvt) Ltd managing director Davison Mhaka has been arrested on allegations of obstructing the course of justice after he reportedly cooked up papers showing how $2.7 million in a botched fuel deal was spent.
Mhaka was arrested on Monday and appeared before the courts yesterday facing charges of defeating or obstructing the course of justice and violating the Money Laundering and Proceeds of Crime Act.
On February 22, 2013, First Oil Company was awarded a tender to supply and deliver diesel to CMED amounting to five million litres.
CMED was prejudiced of $2.7 million of which $2,360,000 was transferred EBG Hong Kong Limited’s bank account number OSA 11013768250901 held by Ping AN Bank Co Limited in China with Mhaka being a signatory.
It is alleged that Mhaka attempted to conceal the botched deal by fraudulently creating false company documents which he presented it to the National Prosecuting Authority so that he would be exonerated of fraud.
Mhaka was sold out by the person he had contracted to make the fictitious documents,Daniel Chidenyu, after he failed to pay him R250 000 for the job.
He was remanded to April 20 on $500 bail.
- Chronicle
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