Prime Homes Directors in Court Over Alleged US$2 Million Property Fraud

By Percy Nhara | Southerton Business Times

HARARE – Two directors of Prime Homes (Private) Limited have appeared before the courts facing fraud charges after allegedly using a forged board resolution to place the company under liquidation and facilitate the sale of a company property valued at US$2 million. Gerald Shupikai Mudzonga (52) and Patricia Taonesa (48) appeared before Harare Regional Magistrate Jessie Kufa, where they were granted free bail pending further investigations.

The pair is accused of defrauding Prime Homes and fellow company directors through an alleged scheme involving forged company documents and the attempted disposal of a valuable property in Marlborough. According to the State, Prime Homes purchased a 14.1449-hectare stand in Marlborough in 2025, which was registered under Deed of Transfer No. 5994/83.

Prosecutors allege that in April 2025, Mudzonga and Taonesa created a forged board resolution bearing the purported signatures of other company directors. The document was allegedly backdated to 16 July 2024 and falsely indicated that the company's board had resolved to place Prime Homes under voluntary liquidation.

The State alleges that the accused submitted the purported resolution to the Master of the High Court in support of an application to liquidate the company, citing mounting debts. Based on the application, the matter was referred to the High Court, which subsequently appointed Oliver Masomera of Obraum Trust Company (Private) Limited as the provisional liquidator.

According to court papers, Masomera, acting through Obraum Trust Company, engaged several estate agents to identify potential buyers for the company's assets. Prosecutors say the company's other directors only became aware of the alleged scheme after discovering that one of Prime Homes' properties was being marketed for sale without their knowledge or approval.

Before the alleged fraud was detected, the Marlborough property had reportedly been sold to Veromix for US$1.2 million. The court heard that the purchaser had allegedly already paid a US$600,000 deposit, with the outstanding balance expected to be settled upon transfer of ownership and payment of capital gains tax. The State argues that the alleged fraudulent liquidation process exposed Prime Homes to an actual prejudice of US$2 million, representing the property's estimated value.

Investigations are continuing into the circumstances surrounding the alleged forged documents, the liquidation application and the subsequent sale of the property. The accused have not yet been asked to plead, and the allegations against them remain before the court.

Prime Homes fraud case