Harare man accused of using relatives’ homes worth US$1M as loan collateral
HARARE – A 55-year-old Harare man allegedly used his relatives’ homes — valued at more than US$1 million — as collateral to secure loans from two local banks, but then failed to repay the debts, prompting the banks to pursue his family members for recovery.
The accused, Tonderai Chikuni, appeared before Harare magistrate Marewanazvo Gofa on fraud charges and was released on US$500 bail. The case was postponed to April 17.
Prosecutors say Chikuni and an accomplice, Oscar Guti Njanji — who is still at large — orchestrated a scheme in February 2023 to defraud two of Chikuni’s relatives by convincing them to release title deeds for their homes to secure short-term business loans.
In the first case, the complainant is Florence Rwidzai Madake, 57, Chikuni’s aunt. Chikuni allegedly told her he worked as a business consultant for Njanji, who supposedly had viable operations at Freda Rebecca Mine in Bindura requiring funding.
Chikuni claimed they had applied for a loan from BancABC but were rejected due to lack of collateral. He allegedly persuaded Madake to release the title deed to her Borrowdale West property — valued at US$460,000 — to secure a 90-day loan of US$252,842.29.
Based on the alleged misrepresentation, Madake handed over her title deed. The loan was approved, but Chikuni and his accomplice reportedly failed to repay it, leading BancABC to initiate steps to repossess the property. After failed attempts to recover the deed, Madake filed a police report.
In the second case, the complainant is Chikuni’s cousin, Farai Chikuni, 59. Prosecutors say the accused used a similar approach to convince him to release the title deed to his Glen Lorne property — valued at US$600,000 — to secure a 90-day loan of US$225,000 from NMB Bank.
Again, the accused allegedly failed to repay the loan, and the bank began proceedings to repossess the property. Farai Chikuni also filed a police report.
In total, the alleged fraud exposed the complainants to a combined potential loss of over US$1 million in property value.
