adminformer chief executive Fredrick Charles Mutanda recently at the Harare Magistrates’ Courts.
Mutanda is jointly charged with Frank Majaka on fraud charges involving over US$25 million after taking 50 dossiers of critical drugs manufactured by Caps.
They registered the drugs in Europe under the name Caps International.
Mutanda appeared before Harare magistrate Ms Anita Tshuma who remanded him to October 17 for the State to file its response.
Mutanda’s lawyer, Ms Linda Chipato, wants the bail condition that bars her client from interfering with directors, workers or the day-to-day running of Caps Holdings relaxed.
This, she argued, would enable Mutanda to participate in the deal between Caps and IDCZ. According to papers submitted in court, Mutanda, as board chairman, was summoned for a meeting with the Secretary for Industry and Commerce on September 27.
“It was communicated to him that Cabinet had made a decision on Caps at its 28th meeting of August 21, recommending that Government through the Industrial Development Corporation should save Caps from collapse by taking over its debts,” the papers read.
According to a letter signed by Mr Stanislaus Mangoma from the ministry, on August 21, Cabinet resolved that Government takes over the pharmaceutical company.
On October 3, Mutanda met representatives from IDCZ led by group financial controller Mr Peter Madara at FCM Motors, as a result of the Cabinet decision on Caps.
A letter signed by IDCZ general manager Mr Michael Ndudzo was hand delivered to Mutanda.
It stated that Caps was to reveal all information regarding its day to-day-operations.
In the letter, the team was to have access to records on financial, human resources, intellectual property, management information system, group structure including foreign holdings and operation records, among other important information.
Mutanda responded to Mr Ndudzo through his lawyer, Ms Chipato.
Prosecutor Mr Michael Reza alleges that Mutanda connived with Majaka to swindle Caps of more than US$25 million.
The duo allegedly fraudulently took 50 dossiers of critical drugs manufactured by Caps Private Limited and registered them in Europe under the name Caps International.
The State says 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.
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