War veteran and businessman, Frederick Charles Mutanda has upped his resolve for the government to return his shareholding in drugs giant, CAPS Holdings.
He has sensationally accused Industry Minister of Industry Sekai Nzenza of acting in bad faith in a desperate bid to give away his assets to ‘cronies’.
This comes amid indications that Mutanda is on the verge of calling for an Extraordinary General Meeting (EGM) of all shareholders to appraise them of the latest developments and map the way forward.
This publication also understands Mutanda might also sue at the international courts.
Mutanda and the government fell out after the regime failed to honour its pledge to pay US$25 million to the respected businessman for his stake, which they agreed to in 2015 when he accepted to sell shares to the government.
The businessman and the government have had a long-running court and out-of-court battle for the shares, but the state eventually sold the shares before settling with Mutanda.
This week, Mutanda got a response from the Minister of Industry Sekai Nzenza responding to demands by the businessman that government pays US$25 million and return immovable properties, which he said were abused by former Caps Holdings senior employees.
“I have read the contents of your letter citing objections of a legal nature. However, I advise that you wait for the outcome of the appeal which you have filed pending before the High Court as well as another appeal which, was filed by CAPS Holdings on the same matter.
“The matter involving both parties is sub judice, therefore, is not open for discussion outside the ongoing court process,” wrote Nzenza to Mutanda.
But Mutanda immediately hit back and Tuesday wrote back to Nzenza demanding fair play.
He wrote: “Your response shows your unwillingness to deal directly with the matters brought to your attention in my letter of 17 January 2022, instead you advise that I wait for the outcome of the application.
“First, the issues raised in my letter are neither sub judice nor impact on my application. My letter to you, as the Minister now responsible for CAPS, raised very specific concerns regarding compulsory deprivation of CAPS Holdings by the government. It is unfortunate that you are misinformed and therefore misled.
“Minister, the question of rights and liabilities should ordinarily be resolved by the exercise of the law and not impunity. The law should apply equally to all. In that regard Honourable Minister, you must exercise your public powers in good faith, fairly, and stop giving away my assets and CAPS business to cronies.
“Our Constitution guarantees protection of property rights. Yet government compulsorily seized my assets and CAPS Holdings without compensation to me or the other 1 216 shareholders.
“In essence, the default on treasury bills confirms compulsory deprivation and is not sub judice but a blatant disregard of the rule of law and infringement of constitutional rights which you must address with urgency,” he said.
Mutanda believes that shareholders have been cut off by the government from developments in CAPS Holdings and there wants to hold an EGM.
Mutanda is also questioning how the government sold St Anne’s Hospital (which was under CAPS Holdings) to Roman Catholic nuns. He is the son-in-law of the late Vice President Joshua Nkomo is a fearless fighter who does not hesitate to fight for his rights.