The major shareholder of CAPS Holdings, owner of FCA Motors and Western Union local franchise holder, Frederick Mtandah, and his co-accused, CAPS Pharmaceuticals general manager, Justice Majaka, applied for refusal of further remand at the Harare Magistrates Court yesterday.
Through his lawyer Jonathan Samkange, Mtandah told the court: There are no reasonable grounds on which the accused should remain on remand. He owns 85% shares in the company and the State conceded he is the major shareholder.
He determines how the company should run and who should run it.
The company is no longer owned by the government as the case used to be. He can fire and hire anyone at the company and if he decides to close it down nobody can challenge him.
Samkange argued the other 15% shareholders would not have a say in the day-to-day running of the business and would not have authority to stand as complainants in the matter. Majakas lawyer, George Mhlanga, also echoed the same sentiments and told the court his client never made any misrepresentations to the Medicines Control Authority of Zimbabwe as alleged by the State.
Mhlanga said no prejudice had ever occurred at CAPS Holdings contrary to the States allegations. Mtandah and Majaka were arrested in November last year over an alleged $25 million fraud case.
The State alleges they applied for deregistration of 50 drug formulas from CAPS Holdings and subsequently registered them under CAPS International, an allegation they denied.
Prosecutor Obi Mabahwana is expected to respond to the applications today.