A Zimbabwean accountant who siphoned off more than R17 million from a Johannesburg-based non-profit organisation has had his estate finally sequestrated after years of dodging repayment.
Edward Mwanandimai, who worked as an accountant at the Education and Training Unit (ETU) between July 2014 and May 2020, orchestrated a sophisticated fraud scheme that drained millions of rands intended for the South African Revenue Service (SARS), suppliers, and employee benefits.
Court documents before the Gauteng High Court, Pretoria, reveal that Mwanandimai began diverting funds in January 2015, executing 384 fraudulent transactions until April 2020.
Instead of honouring ETU’s obligations to SARS and other creditors, he funneled money into his personal bank accounts and Lopdale Services and Investments, a company linked to him.
An internal investigation found that one of his personal accounts received nearly R679,000 within the first seven months of the scheme, while Lopdale pocketed over R14.65 million between 2015 and 2019.
Mwanandimai also fabricated supplier accounts, tampered with payroll records, and even created a fictitious employee on ETU’s Discovery Medical Aid Scheme, defrauding the organisation of an additional R160,845.
The NGO also unknowingly paid more than R239,000 towards his Bestmed medical aid and covered his cellphone bills and personal debit orders.
ALSO READ:Chirume Under Fire: Harare Gynecologist Accused of Exploiting Patients
The fraud was exposed only after ETU hired a new accountant who uncovered the financial discrepancies. By September 2020, Mwanandimai had admitted in writing to stealing nearly R7 million, but despite repayment promises, he defaulted. His last payment was made in June 2021.
Acting Judge Sanet van Aswegen ruled last Thursday that Mwanandimai’s estate be finally sequestrated, citing his failure to act transparently or propose a viable settlement plan.
“This order will serve the interests of justice by enabling a proper investigation of his estate under the Insolvency Act for the benefit of all creditors,” she said.
ETU laid fraud charges against Mwanandimai at Yeoville police station in September 2020. Attempts to obtain comment from his legal team and ETU were unsuccessful at the time of publication.
