Chinese Investor Accused Of Stealing US$3.65 Million From Lithium Company Denied Bail

A Chinese investor accused of misappropriating more than US$3.65 million from a lithium mining company has been denied bail.

Li Shigang, 58, of Borrowdale in Harare, appeared before Magistrate Jesse Kufa, who said he was facing a serious offence and was likely to abscond.

The matter was remanded to 29 July pending finalisation of investigations.

The complainant is Chen Dehu, 57, a director of San Ding Lithium (Private) Limited, who lives at Golden Peacock Villa in Borrowdale.

Prosecutor Lawrence Gangarahwe told the court that Li joined San Ding Lithium as chief finance officer and commercial manager in 2022.

By virtue of his position, he had full control over the company’s financial affairs, including collection and disbursement of funds, financial supervision, commercial settlements, payment approvals and overall financial management.

The court heard that on 12 October 2022, Li invested US$630,000 of his own money into the company and was subsequently given access to its financial systems.

During his tenure, the company is said to have accumulated capital of more than US$3.65 million.

It is alleged that without the knowledge or approval of the complainant and other directors, Li, acting in connivance with an alleged accomplice, Zhu Guozhonga, misappropriated company funds using forged receipts and invoices to conceal the transactions.

The State alleges the pair converted money meant for the company’s operations to their own use, resulting in the suspension of its activities.

It is further alleged that the two also disposed of two company-owned Toyota Hilux double-cabs and converted the proceeds to their own use.

The court heard that in January 2024, Li and his alleged accomplice resigned without completing handover procedures, including surrendering financial records, accounting books and reconciliation reports.

It is alleged that Li was intercepted by the complainant and another employee, Chen Xingmei, while attempting to remove company financial records from the premises, as he resigned.

The complainant reportedly made several attempts to recover the records and resolve the matter, but the accused allegedly failed to cooperate or account for the missing funds.

The State says the total prejudice is US$3.65 million, and nothing has been recovered.

More: The Herald