caps 29.11.11.jpgThe major shareholder of CAPS Holdings and owner of FCA Motors and Western Union, Frederick Mutanda, who is facing charges of fraud involving more than US$25 million, has been released on US$1 000 bail while his accomplice, Justice Majaka was released on US$500.

Mutanda, who is being represented by former Attorney General, Sobusa Gula-Ndebele, is facing two counts of fraud and two counts of theft.

It is alleged that Mutanda connived with Majaka and defrauded CAPS Holdings of US$25 million after they fraudulently took 50 dossiers of critical drugs manufactured by CAPS Private Limited and registered them in Europe under the name CAPS International.

They did so after they misrepresented to the Medicines Control Authority of Zimbabwe that they had authority from CAPS Holdings to de-register the drugs.

The development saw CAPS importing those drugs thereby prejudicing the company of US$25 million.

It is also the State’s case that CAPS Private Limited won a tender to supply drugs to the government of Zimbabwe through Natpham and were given 1.3 million euros  and they only supplied drugs worth 900 000 euros and Mutanda is alleged to have pocketed the remainder.

In addition, it is believed that CAPS Holdings secured a US$4 million loan from the National Social Security Authority (NSSA) through CBZ and Mutanda is, however, alleged to have withdrawn US$1.5 million and converted it to his personal use.