Omanghana
A Chinese investor and former chief finance officer has been arrested in Zimbabwe over allegations that he siphoned US$3.65 million from a lithium mining company, triggering the collapse of its operations and exposing major governance concerns within the country’s fast-growing mining sector.
Li Shigang, the former commercial manager and chief finance officer of San Ding Lithium (Private) Limited, appeared before the Harare Magistrates’ Court after being arrested by Zimbabwean police on July 11, 2026. Prosecutors accuse him of orchestrating a large-scale fraud that drained company finances and ultimately forced the lithium producer to shut down.
Prosecutors Allege Multi-Million Dollar Fraud
According to court documents, Li held a position of significant financial responsibility within the company, overseeing collections, payments, disbursements, and approval of financial transactions.
Investigators allege that he abused this authority by working with an alleged accomplice, Zhu Guozhonga, to divert company funds through fraudulent financial documentation.
Prosecutors claim the pair used fabricated invoices and receipts to siphon US$3.65 million intended for the company’s mining and operational activities into their own accounts.
Authorities further allege that the suspects illegally sold two company-owned Toyota Hilux double-cab vehicles and retained the proceeds instead of returning them to the business.
Financial Misconduct Allegedly Brought Operations to a Standstill
The alleged diversion of millions of dollars reportedly left San Ding Lithium unable to sustain its mining and processing operations.
According to investigators, the financial losses depleted the company’s working capital, eventually forcing the lithium mine and processing plant to cease operations entirely.
The collapse comes at a time when Zimbabwe is seeking to position itself as one of Africa’s leading suppliers of lithium, a critical mineral used in electric vehicle batteries and renewable energy storage systems.
Executives Allegedly Left Without Handover
The prosecution told the court that Li Shigang and Zhu Guozhonga both resigned from the company in January 2024 without carrying out a formal handover of financial records or company assets.
Investigators also allege that company director Chen Dehua intercepted Li while he was attempting to remove physical accounting books and financial records from company premises.
Authorities claim the suspects subsequently avoided contact with company directors for more than two years, making it difficult for the business to trace missing funds or gain access to financial records needed to continue operations.
Court Proceedings Underway
Li Shigang made his initial appearance before Harare Magistrate Jesse Kufa, where he was formally charged.
He faces a primary charge of theft of trust property under Zimbabwe’s Criminal Law Code. Prosecutors have also filed alternative charges under the Money Laundering and Proceeds of Crime Act, reflecting the seriousness of the allegations.
The court remanded Li in custody pending a bail hearing.
Authorities say none of the alleged US$3.65 million has been recovered, and investigations into the case remain ongoing.
Spotlight on Governance in Zimbabwe’s Lithium Industry
The case has drawn significant attention as Zimbabwe continues to attract billions of dollars in foreign investment—particularly from Chinese companies—into its rapidly expanding lithium industry.
Industry observers say the alleged fraud underscores the importance of stronger corporate governance, tighter financial controls, and greater transparency in a sector that has become increasingly vital to the global clean energy supply chain.
As legal proceedings continue, the outcome of the case is expected to be closely watched by investors, regulators, and mining companies operating across Zimbabwe’s strategic minerals sector.
Source: Omanghana
