A Harare businessman, Never Mhlanga, who also serves as chairman of the Zimbabwe Insurance Brokers, has been remanded in custody on allegations of fraud amounting to US$208,500.

Mhlanga appeared before Harare regional magistrate Marewanazvo Gofa, who directed the State to explain why it had initially consented to bail.

The case was brought forward by Ludham Investments (Pvt) Ltd, represented by its director and company secretary, Tinashe Able Chimanikire.

According to court papers, the dispute dates back to November 2024, when Chimanikire read in the Financial Gazette that Briolette Services (Pvt) Ltd, trading as Mont Clair Hotel and Casino, had been sold to the RTG Group for US$5 million.

Given that Ludham Investments holds a 4.17% stake in Mont Clair, Chimanikire contacted other shareholders to verify the report. He was allegedly informed by Earnest Matienga, a director at NDH Holdings, that the sale agreement had been signed and was already in progress.

Chimanikire questioned why his company had not been consulted, considering that all 24 shareholders in Mont Clair hold equal shares. He was then told that Mhlanga had represented Ludham Investments in the deal.

Prosecutors allege that Mhlanga acted without authority, as he had resigned from Ludham Investments, and that his actions prejudiced the company by US$208,500.

The matter is still before the courts.