TGT Loses $200m

Source from:  The Herald (Harare) 05/27/2004

THE Tobacco Growers Trust recently lost more than $200 million, part of which was meant for inputs for small holder tobacco farmers, after two officials allegedly converted the money to their own use. TGT board member and general manager Albert Jaure appeared before a Harare magistrate's court on initial remand for allegedly converting $100 million meant for inputs for small-scale tobacco farmers to buy a house. Jaure (44) appeared before magistrate Ms Sukai Tongogara on Monday charged with theft by conversion. He was not asked to plead and was remanded to June 9 on $10 million bail. Jaure was ordered to reside at his Greendale house, surrender his passport and not visit the Tobacco Growers Trust offices until the matter is finalised. Prosecutor Mr Lungile Ndlovu said Jaure committed the offence between January 30 and March 8 this year. The State alleges that on January 4 in his capacity as general manager and also a board member, Jaure approached one Sean Bruss who was selling his house number 102 Coronation Avenue in Greendale Harare for $300 million. Jaure allegedly agreed with Bruss to pay him over three months through monthly instalments of $50 million. Jaure being one of the signatories of the TGT trust account at the Jewel Bank took advantage of the pre-signed cheques by another signatory Mr Julius Ditoyi Ngorima and paid Bruss. Jaure allegedly made a payment of $11 million with cheque number 00000273 to Incredible Technologies on Bruss' instructions. It further alleged that Jaure issued another cheque number 0000274 with a face value of $39 million to Platinum Investments to top up his first payment. He allegedly instructed TGT bankers the Jewel Bank to issue cheque number 182396 with a face value of $50 million in favour of Marko. The court heard that the cheque was issued and it was later cashed. As a result, TGT was prejudiced a total of $100 million. This money, it is alleged, was part of the $10 billion made available by the Government to benefit small-scale tobacco farmers throughout the country. The money was sourced through the TGT from the Reserve Bank of Zimbabwe. TGT under the credit scheme input scheme had identified suppliers of inputs including Farmers World, Rarefield Investments, TSA and Varitech. The suppliers would be paid in advance to make available inputs to the farmers who would in turn apply to TGT to benefit from the scheme. Successful farmers would then supply TGT with their requirements and would be given buying orders to go and acquire inputs from any of the suppliers. The farmers would then get their inputs and the supplier would reconcile the order given to the farmer against the repayment made to them by TGT. TGT would then recover the money for the inputs from the farmer after selling their tobacco through the Tobacco Industry and Marketing Board. In a related case, Angellah Manyeruke (22) an administration officer at TGT also appeared before the same court facing similar charges. Manyeruke was charged for allegedly converting more than $109 million from the trust to her own use between January 22 and February 3 this year. She was remanded out of custody on $10 million bail to June 9 coupled with reporting conditions. Enditem