Stanchart Accused Of Misappropriating Funds

The Zimbabwe Farmers Development Trust (ZFDT) said the funds had been received from WK Kellogg Foundation, one of the world’s largest charitable organisations.

ZFDT executive director, Tichasiyana Mapondera said WK Kellogg Foundation provided the farmers association with a grant amounting to $100 000 and they had only accessed about $13 000 by the time they realised that Stanchart had misused their funds.

Court papers seen by Radio VOP show that Stanchart opened a new account number 870022342890 in the name of the farmers’ organisation instead of the existing 874002342800 without consulting the farmers’ body.

Mapondera said Stanchart advised his farmers’ association that it had transferred its funds to the central bank, which at the time raided several individual and corporate accounts without their consent.

Mapondera disputed the bank’s explanation charging that it had no legal obligation to comply with any command from the Gideon Gono led apex bank.

Mapondera said such actions showed that the commercial bank had abdicated its obligation to keep safe funds entrusted to the bank.

Stanchart had “failed in its fiduciary duties towards plaintiff and instead illegally wrongfully and unlawfully violated sound and proper banking practices.”

The ZFDT case could spur other individuals and corporate who lost their monies about four years to institute similar legal action against their bankers whom they entrusted with safekeeping their funds.