Zimbabwe prosecutors withdrew fraud charges against two Chinese businessmen after a complainant said the US$400 000 business dispute had been settled.
The State has withdrawn fraud and forgery charges against two Chinese businessmen who had been accused of defrauding their business partner of more than US$400 000. The charges against Mu Jirui and Li Miao were dropped after the complainant informed the court that the dispute had been resolved amicably.
Mu Jirui and Li Miao had appeared in court facing allegations of fraud and forgery linked to their fellow shareholder, Wang Li. The two businessmen were represented by their lawyer Ms Moroveke Timukudze during the court proceedings.
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The withdrawal followed an affidavit submitted by complainant Wang Li. In the affidavit, Wang Li stated that the parties had settled their dispute and no longer wished to continue with the criminal matter.
The case was formally withdrawn before Harare regional magistrate Mr Donald Ndirowei. The court was informed that the complainant was no longer interested in pursuing the charges after reaching an agreement with the accused persons.
According to earlier allegations placed before the court, the dispute began in April last year when the three parties agreed to invest in Li Miao’s company, Kenova Crop Science (Pvt) Ltd. The company is involved in the pesticides business in Zimbabwe.
Prosecutors had alleged that Wang Li invested US$420 000 into the venture and was expected to receive a 44 percent shareholding in the company. It was also stated that Mu Jirui invested US$210 000 for a 22 percent stake.
Li Miao was said to have contributed US$330 000, which would give him a 34 percent shareholding in the company. However, it had been alleged that despite investing the funds, Wang Li did not receive the shares corresponding to his contribution.
The court previously heard that in August this year, Li Miao filed an application at the High Court under case number HCH 485/25. In that application, he reportedly demanded money and a vehicle from Wang Li, claiming the assets belonged to Katsu Agro Chemical (Pvt) Ltd.
Upon reviewing the High Court application, Wang Li allegedly discovered a document titled “Investment Refund Agreement.” The document reportedly stated that the funds invested into the business had already been refunded.
Prosecutors had alleged that the document was fraudulent and did not reflect the true position. Wang Li maintained that no refund had been made and denied receiving back the US$420 000 investment.
It was further alleged that Li Miao later filed a police report supported by another similar document. The document was said to have been signed by both Wang Li and Mu Jirui, acknowledging receipt of the US$420 000.
Wang Li denied the claim and maintained that no repayment had been made. As a result of the alleged misrepresentation, prosecutors had said Wang Li suffered prejudice amounting to US$420 000, with no recoveries made at the time.
With the withdrawal of charges, the criminal matter has now come to an end unless new legal steps are taken in the future. The resolution closes a case that had drawn attention because of the large amount involved and the business partnership dispute behind it.
