Harare Magistrate Issues Arrest Warrants Over US$52K Estate Fraud Case

Harare provincial magistrate Mr Tapiwa Kuhudzai has issued a warrant of arrest to Tinashe Pswarayi, son of the late freedom fighter and medical practitioner Edward Munatsireyi Pswarayi, and his associate Tauya Masunda, who are facing charges of misappropriating over US$52 000 in rental income from properties belonging to the deceased’s estate after they failed tonshow up for judgement.

Executor and Complainant Senior Lawyer Caleb Mucheche testified during trial together with deceased UK based daughter Ms. Chenayimoyo Pswarayi about the rampant theft of estate late Dr. Edward Munatsireyi Pswarayi rentals money in the sum of US$52 000 by Tauya Masunda and Tinashe Pswarayi, between June 2014 to November 2014 before the appointment of the executor.

Mr Mucheche, told the court that Masunda and Pswarayi unlawfully created two bogus shell trusts as part of a web of fraud and theft, which they used to steal US$52 000 from the estate from June 2014 to November 2014, in violation of section 42 of the Administration of Estates Act [Chapter 6:01].

The case was initiated by United Kingdom-based Takunda Pswarayi, a sibling and one of the beneficiaries of the estate.

Tinashe, a trustee of the late Dr Pswarayi’s estate, is unemployed, while Masunda serves as the director of City Accounting and Secretarial Services and is also a trustee of the estate’s Tondori 1 and Tondori 2 trusts.

Prosecutor Polite Chikiwa informed the court that in 2009, Dr Pswarayi registered his properties under two trusts.

Tondori 1, which contains Munatsireyi Service Station and a commercial building in Machipisa, Harare, while Tondori 2 encompasses two residential stands in Borrowdale Brooke, a supermarket in Kambuzuma, another residential stand in Kambuzuma, and a 51 percent shareholding in Tondori Farm Private Limited located in Beatrice.

After Dr Pswarayi’s passing on June 8, 2014, all properties remained under the two trusts, with Tinashe and Masunda as trustees.

That same month, the accused allegedly began collecting rental income from properties registered under the estate.

The prosecutor claimed that in June alone, the pair received US$9 835 in rentals.

However, they failed to remit the funds to the executor or report the transactions to the Master of the High Court, as required under Section 42 of the Administration of Estates Act, Chapter 6:01.

The alleged misappropriation continued, with the duo collecting a further US$42 400 in monthly rental income between August and November 2014.

Despite their fiduciary duties, they allegedly did not distribute the funds to beneficiaries or account for them to the executor or the Master of the High Court.

As a beneficiary of the Estate, Takunda was entitled to 10 percent of the rental income, reportedly received no payment during this period.

It was only in December 2014, following the appointment of Advocate Caleb Mucheche as executor dative by the Master of the High Court, that Takunda uncovered the alleged misconduct.

Prosecutors contend that the accused failed to comply with the legal obligations governing the administration of estates, which require any individual in possession of a deceased person’s assets to surrender them to the executor or report to the Master of the High Court.

The total amount allegedly misappropriated stands at US$52 235 and nothing has been recovered.