By a Correspondent
A Chinese investor and former chief finance officer of San Ding Lithium has been arrested for allegedly siphoning more than US$3.65 million from the company in a scheme prosecutors say crippled the firm’s operations.
Li Shigang (58) appeared before Harare Magistrate Jesse Kufa on Monday after his arrest on July 11. He is facing a principal charge of theft of trust property, with an alternative charge of contravening the Money Laundering and Proceeds of Crime Act.
He was remanded in custody pending a ruling on his bail application.
According to the National Prosecuting Authority, Li joined San Ding Lithium in 2022 after investing US$630,000 in the company. He was appointed Chief Financial Officer and Commercial Manager, a position that gave him control over the company’s finances, including the collection, disbursement and approval of funds.
Prosecutors allege that instead of safeguarding the company’s finances, Li worked with an alleged accomplice, Zhu Guozhonga, to systematically loot company funds through forged receipts and fraudulent invoices.
The pair allegedly diverted US$3.65 million earmarked for mining operations. They are also accused of selling two company-owned Toyota Hilux double-cab vehicles and pocketing the proceeds.
The State further alleges that as suspicions mounted, Li and Zhu resigned in January 2024 and refused to hand over the company’s financial records.
In one incident cited by prosecutors, San Ding Lithium director Chen Dehua and another employee allegedly intercepted Li while he was attempting to remove critical financial ledgers from the company’s offices without authorisation.
Investigators say the disappearance of the financial records severely hampered efforts to trace the missing funds, leaving the company’s directors struggling for more than two years to establish what had happened.
Police eventually tracked down and arrested Li last week, bringing the long-running investigation to a head.
The State says San Ding Lithium suffered losses of US$3.65 million, none of which has been recovered.
The allegations remain before the court, and Li has not yet been asked to plead.
