Pretoria – A Zimbabwean accountant, Edward Mwanandimai, a member of the UK-based Association of Chartered Certified Accountants, is facing potential sequestration proceedings in the North Gauteng High Court following allegations of misappropriating over R17 million from his former employer, the Education and Training Unit (ETU).
The ETU, a Johannesburg-based non-profit organisation focused on democracy and development in South Africa and Southern Africa, launched the sequestration application after uncovering the alleged theft following Mwanandimai’s resignation in May 2020.
Mwanandimai’s employment with the ETU spanned from July 2014 to May 2020. Initially, the ETU discovered a significant amount of missing funds and, in September 2020, Mwanandimai signed an acknowledgement of debt admitting to stealing approximately R6.8 million, which he subsequently repaid.
However, further investigations revealed a far greater extent of the alleged misappropriation, with the ETU ultimately claiming Mwanandimai owes just over R17.1 million. Court documents show that Mwanandimai later admitted to stealing more than the initially acknowledged amount.
The court heard that despite having limited access to the ETU’s internet banking profile – initially restricted to viewing only – Mwanandimai managed to obtain broader transactional privileges. He persuaded colleagues to grant him wider access, enabling him to manipulate the online banking system.
The method of theft involved a sophisticated manipulation of the ETU’s online payment system. Court papers detail how Mwanandimai systematically replaced legitimate creditor account numbers with his own personal account number or that of his company, Lopdale Services and Investments.
Crucially, he left the recipient names unchanged, diverting payments intended for legitimate creditors and the South African Revenue Service (SARS) into his own accounts. This cleverly concealed the fraudulent activity.
Further complicating the matter, Mwanandimai admitted to owing nearly R1.8 million in September 2021 and proposed a repayment plan of R11 million over 72 months. However, these admissions, contained in letters marked “without prejudice” by his attorney, were deemed inadmissible as evidence.
In her ruling on 28 October, Judge Soraya Hassim addressed the core issue: “In my view, the existence of a debt has not been disputed, let alone disputed on bona fide (genuine) and reasonable grounds. The dispute, if any, turns on the extent of the indebtedness.”
Judge Hassim issued a rule nisi, a provisional court order, requiring Mwanandimai and all interested parties to demonstrate why his estate should not be sequestrated. The order also addresses the costs associated with the ETU’s sequestration application and Mwanandimai’s unsuccessful attempt to strike out the accusations.
Mwanandimai’s application to strike out the ETU’s claims – arguing they were scandalous, vexatious, defamatory, and irrelevant to the sequestration proceedings – was rejected by the court. The ETU has not yet responded to inquiries regarding potential criminal charges against Mwanandimai, and attempts to reach him and his legal representatives for comment have been unsuccessful.
