Two men in Zimbabwe are facing fraud charges after allegedly scamming a business director out of US$20,000 with a promise that he would earn US$3 million in just three months through a suspicious investment scheme.
The suspects, George Masvipe (47) and Pascal Magama (59), appeared at the Harare Magistrate’s Court this week, where they were charged with fraud. The complainant in the case is Terraworld Investments Private Limited, represented by its director, Terence Mwahowa.
According to the State’s case, the incident took place in March 2023 when Masvipe approached Mwahowa with what appeared to be an attractive business opportunity. He claimed that an international company, Needflow Capital Private Limited, was offering high returns on short-term investments through a financial instrument called a Standby Letter of Credit (SBLC).
Masvipe reportedly told Mwahowa that if he invested just US$20,000, he would receive a whopping US$3 million in three months. He explained that Needflow Capital was involved in international SBLC trading and needed the funds as setup capital to initiate a deal that would allegedly generate US$26 million in profits.
To make the deal look more legitimate, Masvipe introduced Pascal Magama as the man responsible for processing the investment paperwork and ensuring Mwahowa’s funds were secured.
Convinced by the presentation and the potential for a life-changing return, Mwahowa agreed to invest. He reportedly handed over US$20,000, and Magama signed a Deed of Agreement confirming the receipt of the funds on behalf of the investment company.
However, as the weeks turned into months, no money was returned, and the promised profits never materialised.
The court heard that both Masvipe and Magama kept making false promises to Mwahowa, assuring him that the deal was still in progress. Eventually, after realising that he had been duped, Mwahowa approached the police and reported the matter.
The total amount lost is US$20,000, and according to authorities, nothing has been recovered to date.
Prosecutors allege that the entire scheme was a well-planned fraud between the two accused persons, aimed at deceiving Mwahowa into parting with his money using fake documents and empty promises of massive profits.
Legal experts describe Standby Letters of Credit as legitimate banking instruments used in international trade, but warn that they are often misused in fraudulent schemes targeting unsuspecting investors. In most cases, scammers use complicated financial jargon and offer unusually high returns to trick victims into investing quickly without proper verification.
This case adds to a growing list of investment scams being reported in Zimbabwe and across the region, as economic hardship and rising unemployment push people into risky ventures in hopes of quick returns.
Court officials have confirmed that Masvipe and Magama remain in custody pending further proceedings, and the matter has been remanded for investigation.
Authorities are urging businesspeople and the general public to be cautious when approached with investment opportunities that promise unrealistic returns in short periods of time. They also advise conducting proper background checks on companies and individuals before parting with any money.
Meanwhile, Mwahowa and Terraworld Investments are seeking legal assistance in an attempt to recover the funds, although police have warned that recovery may be difficult, as no traceable assets have been linked to the suspects.
