CAPS majority shareholder applies for refusal of remand

Mtandah, who is also the owner of FCA Motors and Western Union franchise holder, and his alleged accomplice Frank Majaka, yesterday appeared before Harare provincial magistrate Mr Kudakwashe Jarabini.
Through his lawyer, Mr Jonathan Samukange of Venturas and Samukange, Mtandah argued that there were no reasonable grounds on which he should remain on remand.
Mr Samukange said his client was the owner of CAPS Holdings with 85 percent shareholding hence he could run the company in any way he saw it fit.
“He is not bound by the fact that Government used to be the majority shareholder. The allegations . . . only display ignorance by the investigating officers, who might have looked at it and thought it was an offence,” he said.
Mr Samukange said Mtandah was in fact CAPS Holdings hence he could not prejudice himself.
According to company law, argued Mr Samukange, when one is a majority shareholder he need not consult minority shareholders when making decisions.
“Finally your worship who is the complainant in the case? Mtandah is the majority shareholder hence there cannot be a complainant.
“This is a case of failing to understand the principles of company law,” said Mr Samukange.
Mr George Mhlanga of Chihambakwe, Mutizwa and Partners, who is representing Majaka, argued that allegations facing his client were not only false but non-existent.
He denied making an application to de-register any drugs manufactured by CAPS Pharmaceuticals.
He also argued that CAPS Holdings did not suffer any prejudice as it was still manufacturing the drugs in question.
Prosecutor Mr Obi Mabahwana will respond to the application today.
Charges against Mtandah arose when he allegedly connived with Majaka and defrauded CAPS Holdings of US$25 million after they fraudulently took 50 dossiers of critical drugs manufactured by CAPS Private Limited and registered them in Europe under the name CAPS International.
They registered the drugs after they misrepresented to the Medicines Control Authority of Zimbabwe that they had authority from CAPS Holdings to de-register the drugs.