harare-magistrates-court.03.09.10.jpgThe major shareholder of CAPS Holdings and owner of FCA Motors and Western Union, Fredrick Charles Mutanda who is facing charges of fraud involving more than US$26 million has applied for refusal of remand.

He is jointly charged with one of the company’s managers Justice Majaka.

In his application for refusal of remand, Mutanda said he is the major shareholder of CAPS Holdings and has the right to do whatever he wants.

His co-accused Justice Majaka also indicated that he did not do anything wrong but applied for an amendment of their certificate to change from CAPS pharmaceuticals to CAPS international.

The state represented by Mr. Obby Mabahwana is expected to respond to the application this Friday.

It is alleged 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 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 state papers, CAPS Pvt Limited won a tender to supply drugs worth 2,2 million Euros to the government of Zimbabwe through Natpham, and were given 1,3 million Euros of which they supplied drugs worth 900 000 Euros only.

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However, Mutanda is alleged to have withdrawn US$1,5 million which he is believed to have converted to his personal use.