JOHANNESBURG – A Zimbabwean accountant, Edward Mwanandimai, faces allegations of stealing over $889,000 (approximately R17 million) from his former employer, the Johannesburg-based non-profit organisation Education and Training Unit (ETU), over a six-year period.
Details of the alleged misappropriation surfaced during the ETU’s application for Mwanandimai’s sequestration at the North Gauteng High Court. Mwanandimai, a member of the UK-based Association of Chartered Certified Accountants (ACCA), reportedly carried out the theft between July 2014 and May 2020, only for his actions to come to light following his resignation.
Court filings reveal that Mwanandimai initially admitted to stealing $356,000 (R6.8 million) in September 2020, signing an acknowledgement of debt and making partial repayments. However, subsequent audits revealed that the total amount stolen was significantly higher, exceeding $889,000 (R17.1 million).
After accounting for repayments of approximately $373,000 (R7.1 million), the remaining debt was calculated at $580,000 (R11 million).
Mwanandimai, who had restricted access to ETU’s internet banking system, allegedly convinced colleagues to grant him broader privileges, allowing him to manipulate financial transactions.
Court papers allege he diverted funds by replacing legitimate creditors’ bank account numbers with his own or those linked to his company, Lopdale Services and Investments.
“He retained the legitimate creditors’ names while altering their bank account details, enabling him to divert payments intended for creditors to his personal accounts or those of his company,” the ETU stated in its filing.
This fraudulent activity also extended to payments due to the South African Revenue Service (SARS).
In a September 2021 admission, Mwanandimai acknowledged owing an additional $89,000 (R1.8 million). He later agreed to repay $580,000 (R11 million) over six years, though subsequent correspondence marked “without prejudice” was deemed inadmissible in court.
On October 28, Judge Soraya Hassim issued a provisional sequestration order, giving Mwanandimai and other interested parties until next Friday to argue why his estate should not be sequestrated.
“The existence of the debt has not been disputed, only the extent of the indebtedness,” Judge Hassim noted in her ruling.
Mwanandimai unsuccessfully sought to strike out allegations made by the ETU, claiming they were defamatory, irrelevant, and scandalous. The court rejected his application.
The ETU has not disclosed whether criminal charges have been filed against Mwanandimai. Attempts to reach Mwanandimai or his legal representatives for comment were unsuccessful, and the organisation has declined to provide further details to the press.
The case underscores the vulnerabilities faced by non-profit organisations in managing financial systems and the importance of robust oversight mechanisms. As legal proceedings unfold, questions remain about whether further investigations might uncover additional instances of misconduct.
The court is expected to decide on the final sequestration order next week.