Prosecutors have asked the Nyarugenge Primary Court to remand businessman and FERWAFA President Shema Fabrice for 30 days as investigations continue into two cheques worth a combined US$600,000, approximately Rwf883.5 million, which authorities say were issued without sufficient funds in the account.

Shema, who was arrested by the Rwanda Investigation Bureau (RIB) on August 11, 2026, faces charges related to issuing unfunded cheques and allegedly obtaining another party’s property through fraudulent means.

He denies the accusations, arguing that the case stems from a commercial dispute involving payment arrangements between his company and a foreign business partner.

The provisional detention hearing was held before Nyarugenge Primary Court on August 26. It had initially been scheduled earlier in the day but was pushed to the afternoon to allow Shema and his lawyer additional time to prepare their evidence.

At the centre of the dispute is a commercial agreement worth more than €1 million between Shema’s company, Africa Medical Supply, and ABZL International General Trading LLC, a company based in the United Arab Emirates.

According to the prosecution, the agreement was signed on January 23, 2024, with Africa Medical Supply undertaking to settle the amount due within 60 days.

Prosecutors told the court that the payment deadline passed without the full obligation being settled, prompting ABZL to repeatedly seek payment.

The prosecution said that following several exchanges, including emails, Shema committed to settling the outstanding amount and subsequently issued two cheques on August 5, 2025; one for US$400,000 and another for US$200,000.

Investigators later sought information from the bank about whether Africa Medical Supply had enough money to honour the cheques. According to prosecutors, the bank indicated that the relevant account held less than US$1,000.

The prosecution argued that this provided substantial grounds for the charges and asked the court to keep Shema in custody for 30 days, further claiming that his release could create a risk of flight while investigations remain underway.

Shema strongly disputed that interpretation of events.

He told the court that Africa Medical Supply had an established business relationship with ABZL and had successfully honoured earlier transactions. According to his account, his company paid ABZL US$400,000 in May 2024 and attempted another US$400,000 payment in December of the same year.

The second transfer, he said, did not reach ABZL because of difficulties involving the account provided for receiving the money.

Shema argued that the contract anticipated such a situation, saying one of its provisions required ABZL to provide an alternative account if problems arose with the original payment account.

He maintained that discussions continued between the parties and that the cheques were provided as part of efforts to resolve the payment problem while a suitable account was being identified.

According to his defence, one of the cheques was handed over without a date. Shema alleged that an ABZL shareholder, who later lodged the complaint, subsequently added information to the cheque, including a date and details of a US Bank account in the United States.

The defence questioned why a cheque connected to an agreement with a UAE-based company and originally intended for payment through Dubai would later be associated with a US account.

Shema’s lawyer also challenged what the defence considers inconsistencies in the chronology of the case. The court heard that bank information reportedly indicated the cheques were rejected on July 16, 2025, while the prosecution alleges the offence involving the issuance of the cheques occurred on August 5, 2025.

The lawyer further said that a US Bank account was entered on the cheque on June 25, 2025, arguing that the sequence of dates and alterations surrounding the documents warranted further investigation.

The defence consequently maintains that the dispute may primarily concern the execution of a commercial contract rather than deliberate criminal conduct.

Shema’s team also submitted documents it says show US$600,000 was transferred through Bank of Kigali, alongside correspondence seeking RIB’s assistance in ensuring the funds reached the intended account.

Prosecutors, however, maintained that the central issue remains whether the cheques were backed by sufficient funds when they were issued. They told the court that the documents in the case file bear Shema’s signature and argued that an intention to eventually settle a debt does not, by itself, resolve the allegation that the account lacked sufficient funds.

The prosecution also raised questions about two cheques carrying the same number. According to the prosecution, the original versions do not show a date, while copies contain a date that appears to indicate either August 5 or August 8, 2025.

Shema asked the court to release him pending further proceedings, rejecting the prosecution’s argument that he could flee.

He cited his family, business interests and responsibilities as FERWAFA president as evidence of his ties to Rwanda. He also told the court that he owns assets valued at close to Rwf5 billion and was prepared to offer property as security if required as a condition for provisional release.

Shema further argued that his election to lead FERWAFA reflected the confidence placed in him and insisted that his position had no connection to the allegations before the court.

He also expressed willingness to settle any amount ultimately found to remain outstanding, arguing that detention would make it more difficult for him to resolve the underlying commercial dispute.

The court concluded the provisional detention hearing after hearing arguments from both sides. It is expected to deliver its ruling on September 2, 2026, at 2:00 p.m.

The proceedings concern provisional detention and the allegations against Shema have not yet been determined at trial.