Introduction
In Zimbabwe, theft of trust property is considered a serious crime which is governed by the Criminal Law (Codification and Reform) Act [Chapter 9:13.
Trust property refers to assets that are held whether under a deed of trust or by agreement on terms requiring the holder to do the agreed thing or act.
Anyone who dishonestly takes or converts trust property for personal gains without authorization from the actual owner commits a criminal offense.
What is theft of trust property?
Theft of trust property occurs when a person unlawfully and intentionally takes trust property with the intention to deprive the beneficiaries of their rights to the property.
If a person is entrusted with any property including money that person is not entitled to convert that property to their own benefit and use without the prior expressed or implied authority of the owner who entrusted it to them.
When one is entrusted with trust property they carry the obligation to do any or all of the following:
(a) hold the property on behalf of another person or account for it to another person; or (b) hand the property over to a specific person; or
(c) deal with the property in a particular way;
However, it is important to note that this does not include property received on terms expressly or impliedly stipulating that;
- the recipient is entitled to use the property as his or her own; and
- there would only be a debtor and creditor relationship between the parties;
Legal Consequences
- Criminal liability
Criminal liability may result in a fine, imprisonment or both.
The maximum sentence for theft of trust property is imprisonment for 10 years.
- Damages
The beneficiaries of the trust may sue for damages if the stolen property cannot be recovered. The thief may be liable to compensate the beneficiaries for the value of the stolen property.
- Breach of trust
Theft of trust property is a breach of trust, which may result in the trustee being removed and replaced with a new trustee. The trustee may also be held liable for any losses suffered by the beneficiaries due to the theft.
- Blacklisting
A person convicted of theft of trust property may be blacklisted by financial institutions and may have difficulty obtaining credit, loans and other financial services
Conclusion
Theft of trust property is a serious offence that carries severe consequences in Zimbabwe. It is important that a person holding property in trust understand their legal obligations to manage trust property in accordance with the terms of the trust.
Fungai Chimwamurombe is a registered legal practitioner and Senior Partner at Zenas Legal Practice and can be contacted for feedback at fungai@ zenaslegalpractice.com and WhatsApp 0772 997 889. Ashley Tanyanyiwa is a legal intern.
