Matsika appeals in Croco fight 

Tarisai Machakaire

HARARE tycoon Farai Matsika has appealed to the Supreme Court to overturn last month’s High Court judgment that he fraudulently attempted to snatch 30 percent equity in Croco Holdings, a company owned by businessman Moses Chingwena, the Daily News reports.

This comes as High Court judge, Justice Owen Tagu, last month threw out an application by Matsika and his firm Fairgold Investments seeking an order to have him and his immediate family declared shareholders in Croco Holdings.
Matsika, a former chief executive officer of Croco Holdings, had claimed to have acquired shareholding in the firm in May 2006, but Tagu found him wanting, ruling he produced doctored papers to make the claim.
In his appeal to the Supreme Court, Matsika adamantly denied tendering fictitious documents, adding Justice Tagu had misdirected himself on “the facts and on the evidence that the application before it was founded on material falsehoods, whether as alleged by the respondents or at all”.
“The court a quo erred in law in treating, in any event, the alleged falsehoods in limine litis as opposed to substantive matter of probative value in the assessment of evidence on the merits,” reads Matsika’s appeal to the Supreme Court.
“The court a quo grossly misdirected itself in not finding that the applicants (Matsika and Fairgold Investments) each and both have a real, direct and substantial interest within the contemplation of the oppressive remedies provided in the Companies Act…”
Matsika wants the Supreme Court to dismiss Tagu’s judgment and instead order a forensic audit and valuation of Croco Holdings and its investments in Croco Investments, Cromo Motors, Premier Auto Services and 33 other companies.
The audit and evaluation, Matsika’s application read, must be conducted by an accounting firm registered in line with the Public Accounts and Auditors Act, and must be done within five days of granting the order.
“The 3rd respondent (Croco Holdings) be and is hereby ordered to pay the applicants the full value of 30 percent of its total issued ordinary shares and 30 percent of the value of its investments in the 4th to the 38th responders within five days of completion of the forensic audit and valuation…
“Third respondent be and is hereby directed to reduce 3rd respondent’s share capital once the full amount of its 30 percent issued ordinary shares have been paid by 3rd respondent,” read the relief Matsika is seeking from the Supreme Court.
The Supreme Court is yet to set a date for the appeal.
In his judgment, Justice Tagu savaged Matsika, accusing him of being dishonest.
Chingwena had opposed the application on the grounds Matsika had failed to place before the court evidence showing how he got the 30 percent stake in the company.
He asserted that the documents that Matsika relied on were forgeries as evidenced by the fact that he had put the value of the shares in United States dollars despite that at the time he claimed to have acquired the shares, the country was not using that currency.

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