hands-in-cuffs.jpgThe major shareholder of CAPS Holdings and owner of FCA Motors and Western Union, Fredrick Charles Mutanda has been arrested on charges of fraud involving more than US$26 million.

According to sources close to ZBC News, Fredrick Mutanda was picked up over the weekend by officers from the Anti-Corruption Commission.

Sketch information available to ZBC News indicate that Mutanda fraudulently took 50 dossiers of the most critical drugs manufactured by CAPS Holdings and registered them in Europe under the name CAPS International.

The development saw the country importing those critical drugs such as amoxicillin, diclofenac, penicillin among others.

It is believed that the country was prejudiced of millions of dollars as it is now importing the drugs at exorbitant prizes.

The registering of CAPS International in Europe was done without the knowledge of the Reserve Bank of Zimbabwe, which was supposed to authorise the transaction, a requirement according to intellectual properties provisions.

According to information gathered by ZBC News, CAPS Pvt Limited won a tender to supply drugs worth 2,2 million Euros to the government of Zimbabwe through Natpham, and they were given 1,3 million Euros of which they supplied drugs worth 900 000 Euros only and Mutanda is believed to have pocketed the remainder.

It is also believed that CAPS secured a loan of US$4 million from CBZ.

However Mutanda is alleged to have withdrawn US$1,5 million which he is believed to have converted to his personal use.

Mutanda is expected to appear in court soon.