Prosecution has asked Nyarugenge Primary Court to remand FERWAFA president Fabrice Shema for 30 days over charges of obtaining another person’s property through fraud and issuing two bounced cheques worth a combined $600,000 (about Rwf883.5 million).

Shema appeared before the court on Wednesday, August 26, for his bail hearing.

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During the session, prosecutors told the court that the charges against Shema stem from a business deal between Africa Medical Supplier, a company represented by Shema, and ABZL International General Trading LLC, a United Arab Emirates (UAE)-based company.

The agreements, signed on January 23, 2024, were worth about 1.9 million Euros, with Shema’s company expected to make the required payments within 60 days. Prosecution said the agreements were not fulfilled, leading to the payment dispute and the subsequent issuance of the two cheques.

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The cheques were drawn on an I&M Bank account belonging to Africa Medical Supplier. Prosecution said the bank reported that the account had only slightly more than $1,000.

Under the 2021 law, a person commits an offence if they knowingly issue a bouncing cheque.

A person convicted of the offence faces between two and five years in prison and a fine of between five to10 times the amount stated on the cheque.

The prosecutors asked the court to order 30 days of provisional detention, citing concerns that Shema could evade justice or interfere with the ongoing investigation.

Shema’s defence:

Shema rejected the allegations and gave the court a different account of the payment dispute. He noted that he had worked with the ABZL company and had paid them well.

For example, he said Africa Medical Supplier paid $400,000 in May 2024 through First Abu Dhabi Bank, as provided for in their agreement. He noted that another $400,000 payment was made in December but was not received because the account provided by ABZL had developed a problem.

Shema said the agreement provided for ABZL to give another account if the original account could not receive the money.

"We asked them to amend the agreement and give us another account. While we were discussing that, I gave them a cheque without a date,” he said.

He said disagreements later arose among ABZL shareholders over the account to be used for payment. Shema alleged that one of the shareholders changed some details of the cheque.

His lawyer cited the unauthorised changes as one of the reasons I&M bank rejected the cheques.

Shema told the court that he was willing to settle the outstanding payment.

"The willingness to pay is there; it can be done in one hour,” he said.

The prosecutors maintained that the cheques were signed by Shema and that I&M Bank had confirmed there were insufficient funds in the account when RIB made inquiries.

They also argued that issuing a cheque without sufficient funds is a separate offence from failing to fulfil a commercial agreement.

They asked the court to remand him for 30 days as the case continues. However, he requested for bail, citing among other reasons, his position as FERWAFA president and his property, estimated at about Rwf5 billion, as reasons why he should not be considered a flight risk.

He said the property could serve as security for his release. Nyarugenge Primary Court concluded the hearing and set September 2 for the bail ruling.