Top judicial manager Cecil Madondo of Tudor House Consultants has been arrested on charges of allegedly duping investors of about US$260,000 in a sour mine deal.
The complainants are Probadek Investment directors Patricia Mutombgwera and Grant Chitate.
It is alleged that Madondo, who was appointed by the High Court as the corporate rescue practitioner of Redwing Mine, in Penhalonga in July 2020, misrepresented to Mutombgwera and Chitate, that he was giving them exclusive mining rights at Redwing Mine, covering 132 gold mining blocks, eight copper mining blocks and any other mining claims belonging to the mine.
Acting upon the misrepresentation, Mutombgwera and Chitate are said to have signed a joint venture and relationship agreement with Madondo, who was representing Redwing Mine on October 30, 2020.
They believed they had secured exclusive mining rights to invest in Redwing Mine.
On November 2, 2020, the Probadek directors and Madondo registered a tribute agreement with the Registrar of Deeds as a notarial deed in order to operationalise the joint venture agreement.
It is understood that Probadek Investments paid US$60 000 cash into Madondo’s company Tudor House Consultants and capital expenditure amounting to US$200 000.
Knowing that he had ceded all mining rights to Probadek, Madondo is said to have prepared another memorandum of tribute agreement with another company called Prime Royal in November, giving them the same mining blocks which he had initially ceded to Probadek Investments.
However, Madondo was warned by Probadek’s legal representatives not to sign the agreement without the consent of Probadek Investments.
In December, Madondo entered into another memorandum of tribute agreement with another company called Better Brands Mining, giving them the same mining blocks which he had initially ceded to Probadek.
In the same month, Betterbrands and Prime Royal assumed control of Redwing Mine and started carrying out mining activities which Probadek is entitled to benefit from.
According to the charge sheet, seen by Business Times yesterday, Madondo had no desire to adhere to the terms of the agreement that he was entering with Probadek Investments as evidenced by his conduct in entering memorandum of tribute agreement with Betterbrands Mining well knowing that his agreement with Probadek was still subsisting.
As a result of Madondo’s actions Probadek Investments suffered an actual prejudice to the tune of US$260 000.