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‘Caps Holdings on verge of collapse’


Caps Holdings boss Fredrick Mtandah, who is accused of defrauding the pharmaceutical firm through deregistration of 50 local drug formulas and subsequently registering them under CAPS International, has made an application for alteration of his bail conditions to enable him to return to work and save the drug firm from collapsing.

Mtandah, through his lawyer, submitted before Harare magistrate Anita Tshuma that the situation at Caps Holding had become chaotic due to lack of proper management and as such the firm was on the verge of collapse.

However, prosecutor Norman Tsarwe opposed the application, arguing Mtandah could not be allowed to visit his company as the State feared he could still interfere with continuing investigations.

“The fact that the company is in dire straits does not constitute a changed circumstance. The court that made the order made it with the full awareness of the consequences that would ensue following the barring of the accused from having access to Caps Holdings,” Tsarwe said.

“It is further contended that despite the court imposing that condition, it has not been adhered to by the accused. There has been flagrant disregard of this order and accused has interfered with the day-to-day operations of the company.”

In bolstering the State’s opposition, Tsarwe called the investigating officer, Patrick Can Madiye, who told the court that Mtandah had allegedly victimised State witnesses among them, chief executive officer Jealous Ndebele, company secretary Cynthia Mahari and general managers Tawanda Munyikwa and Bhekimpilo Nkomo, whom he allegedly accused of working against him.

Madiye further told the court that had Mtandah not been arrested by the Zimbabwe Anti-Corruption Commission last year, Caps Holdings would have long collapsed.

The matter was postponed to Monday for continuation.

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