A Zimbabwean accountant who siphoned millions of rand from a Johannesburg-based non-profit organisation has had his estate sequestrated after failing to honour repayment agreements.
Edward Mwanandimai, who worked as the accountant for the Education and Training Unit (ETU) between July 2014 and May 2020, was found to have defrauded his former employer of over R17 million through a series of fraudulent transactions spanning five years. The High Court ordered the sequestration of his estate after determining that Accountant Mwanandimai had no realistic prospect of repaying the funds he stole.
Court documents reveal that Accountant Mwanandimai’s fraudulent scheme began as early as January 2015. By the time he voluntarily resigned in April 2020, ETU’s internal audit had uncovered no fewer than 384 fraudulent payments authorised under his watch.
Instead of paying the South African Revenue Service (SARS) and other legitimate creditors, Mwanandimai diverted funds into his personal accounts and those belonging to his company, Lopdale Services and Investments. The misappropriation was systematic, exploiting his privileged access to ETU’s banking platforms and financial records.
During just the first seven months of 2015, his personal accounts received close to R679,000. Over the following four years, his company pocketed R14.65 million. In addition, smaller transfers totalling R396,100 were made into various accounts linked to him.
Zimbabwean Accountant’s Estate Sequestrated After Defrauding South African Employer of Millions
Investigators also discovered that Accountant Mwanandimai had created fictitious suppliers to generate fake invoices, which he then authorised for payment. In one elaborate ruse, he fabricated a ghost employee within ETU’s Discovery Medical Aid Scheme, channelling over R160,000 in fraudulent contributions.
The non-profit further covered nearly R240,000 in his personal medical aid contributions, as well as payments for his private phone bills, none of which were deducted from his salary. Payroll manipulation and falsified bank records allowed him to conceal his actions for years, until his replacement unearthed the scheme during a comprehensive audit.
The house of cards collapsed when ETU hired a new accountant, who immediately noticed glaring irregularities. A forensic audit followed, confirming that over R17 million had been siphoned from the organisation. Of this, approximately R6.8 million was identified as capital debt owed to the organisation.
Confronted with the findings, Mwanandimai admitted to the fraud and acknowledged his liability. He reportedly confessed to stealing several million rand and committed to a repayment plan. However, despite assurances, he only managed to repay a small fraction of the stolen funds.
In an attempt to avoid harsher legal consequences, Mwanandimai proposed a structured repayment schedule. In January 2022, he offered to settle the debt over 72 months, promising monthly instalments of R100,000. But his track record quickly collapsed.
By June 2021, he had already defaulted on his obligations, and no further payments were forthcoming. Through his legal team, he argued that the Covid-19 pandemic and the July 2021 looting unrest in South Africa had crippled his finances, leaving him unable to meet his commitments. His outstanding debt was calculated at R1.777 million, but his creditors lost confidence in his ability — or willingness — to repay.
Frustrated by his repeated defaults, ETU escalated the matter to court. After hearing submissions and reviewing the evidence, the High Court found that sequestration was the only viable option. The ruling effectively places Mwanandimai’s estate under the control of a trustee, who will liquidate his assets to recover as much as possible for creditors.
Legal analysts say the case underscores both the vulnerability of non-profit organisations to insider fraud and the difficulty of recovering stolen funds once perpetrators have dissipated the money.
ETU, which focuses on training and capacity building for civil society organisations in South Africa, is said to have suffered significant reputational damage from the scandal. Insiders claim that the fraud not only drained financial resources but also disrupted key programmes intended to support grassroots development initiatives.
“The scale of the theft was shocking,” said a source close to the investigation. “It wasn’t just a case of a few missing payments — it was a sustained, calculated scheme that robbed the organisation of millions it could have used to make a difference.”
The case has reignited debate about financial oversight in South Africa’s non-profit sector, where donor funds and grants often flow through small accounting departments with limited controls. Experts say organisations must strengthen internal auditing systems, rotate staff in sensitive roles, and invest in external checks to prevent similar frauds.
For Accountant Mwanandimai, the ruling marks a dramatic fall from grace. Once entrusted with safeguarding the finances of a respected institution, he now faces the liquidation of his estate and the enduring stigma of financial crime.
Whether creditors will recover a meaningful portion of the stolen funds remains uncertain. What is clear, however, is that his elaborate fraud has left a trail of financial and reputational ruin that will take years to repair.
Source- iHarare
