THE High Court has removed from the roll the matter in which NetOne Cellular (Private) Limited is seeking the eviction of former chief executive Lazarus Muchenje, pictured, from a furnished company property in Borrowdale, Harare.
Muchenje is accused of conniving with former NetOne non-executive director, Paradzai Chakona to enter into a lease agreement without the approval of the board.
“Sometime in April 2019, the second defendant (Chakona), on behalf of the plaintiff (NetOne), without board authority and in connivance with the first defendant (Muchenje) with fraudulent intent, purportedly entered into a lease agreement for number 14 Fairfield Road, Borrowdale, Harare with the first defendant,” submitted NetOne in their December 10, 2020 summons lodged at the High Court.
The firm argued that Muchenje was aware that a full board resolution approving the lease agreement was required before the execution of the lease agreement.
“Despite the absence of the board resolution, a purported lease was entered into wherein the first defendant took occupation of the property, fully furnished on a rental of $1000.00 against a market rate of the equivalent of between US$2 500 to US$3 500.00, a fact that was well known by the first respondent.
“The first defendant has no lawful basis of being in occupation of the property paying submarket rentals in that the purported lease agreement is a fraud, and it is not legally binding, of, no legal force or effect and finally null and void,” NetOne argued
Muchenje and Chakona deny the allegations.
“This is denied. Both defendants deny conniving with each other or at all or acting with fraudulent intent in their involvement in the drafting and signing of the lease agreement…at the material time, the company had a long-standing practice of accommodating its chief executive in a fully furnished company accommodation,” they submitted in their plea of May 6, 2021.
They argue that at the time of assuming his duties as CEO, Muchenje could not be housed in the usual accommodation in Greystone Park “as it was and still occupied by his predecessor who refuses to vacate”.
“The plaintiff’s responsible human resources committee of the board which the second defendant was part of, met, discussed and agreed to draw up a lease agreement after the necessary internal motivation was made by the human resources department to give effect to the said practice.”
High Court judge, Justice Joseph Mafusire removed the matter from the roll with each part bearing their own costs.