Chinese Duo Nabbed for US$400k Fraud

Two Chinese investors in Zimbabwe face fraud and forgery charges after allegedly diverting US$420,000 from a pesticide company investment (image source)

Two Chinese nationals, Mu Jirui and Li Miao, have appeared before Harare magistrate Marewanazvo Gofa on charges of fraud and forgery after allegedly misappropriating more than US$400,000 from a business partner in a pesticide investment venture.

Court documents and reports indicate that the complainant, Wang Li, also a Chinese national, invested US$420,000 for a 44 percent stake in Kenova Crop Science (Pvt) Ltd in April 2025. He later discovered that the financial records and receipts provided to him were allegedly falsified, prompting a police investigation.

According to prosecutors, Wang, who is also a director and shareholder at Katsu Agro Chemical (Pvt) Ltd, transferred the investment funds to Miao and Jirui as part of a share acquisition deal in Kenova, which specialises in pesticide production. The accused were charged with fraud and forgery and released on US$500 bail each. They were ordered to surrender travel documents, report fortnightly to the CID Commercial Crimes Division, and remain at their known addresses pending further hearings.

Court filings reveal that the trio had initially agreed to a joint investment structure giving Wang 44 percent, Jirui 22 percent and Miao 34 percent of Kenova’s shares. The dispute arose when Wang demanded share certificates and audited financial statements, uncovering alleged inconsistencies that led to the police complaint.

Legal and corporate governance experts say such disputes underscore the risks of cross-border investments made without formal escrow or banking safeguards.

“Where funds pass through individual hands rather than an escrow account, the risk of misrepresentation rises,”

— Harare corporate attorney

Zimbabwe has seen a rise in Chinese investment across agriculture and agro-inputs, but experts warn that weak documentation and oversight can expose investors to fraud and capital loss. Analysts recommend that foreign investors use independent escrow accounts, audited due diligence, and verified shareholder registers when structuring similar deals.

The case highlights the role of the Criminal Investigations Department (CID) in policing commercial fraud involving foreign capital. As investigations continue, prosecutors aim to determine whether the alleged forged documents were used to divert funds. The outcome is expected to draw attention from regional investors and may prompt calls for tighter commercial dispute-resolution frameworks in Zimbabwe’s agro-inputs sector.