Makamba trying to push Mlotshwa out of Telecel Zimbabwe

Makamba trying to push Mlotshwa out of Telecel Zimbabwe
Published: 23 May 2018 (184 Views)
A NASTY fight has erupted in Telecel Zimbabwe as it emerged that one of the shareholders and Empowerment Corporation (EC) chairman, James Makamba, is allegedly trying to push out prominent lawyer Gerald Mlotshwa as a director of the mobile phone firm.

Mr Mlotshwa became a director in Telecel after his partner, Mr George Manyere, reportedly chose to exit the business, allegedly leaving him as the sole and beneficial owner of EC's 40 percent stake in the company.

Reports have also been rife that while Dr Makamba is regarded as EC chairperson by virtue of his shares in the company, he had in fact sold his stake in the entity.

EC was set in 1998 to ensure locals had a stake in the telecommunications business.

This saw various local organisations such as Dr Makamba's Kestrel Corporation, Dr Jane Mutasa's Selphon Investments, Magamba eChimurenga, Integrated Engineering Group, National Miners Association and the Zimbabwe Farmers Union, getting stakes in EC.

But confusion started reigning in EC when some shareholders failed to pay for their stakes, resulting in other groups buying the shares.

Dr Makamba recently wrote to the company's (Telecel) chief executive officer Mrs Angeline Vere on May 16, 2018, saying EC was withdrawing Mr Mlotshwa from the board.

"Pursuant to the terms of a sale and purchase agreement dated 29th May 2017 ('the SPA') signed between, Kestrel Corporation (Private) Limited, as majority shareholder of EC, Ecsponent (Private) Limited and myself in my personal capacity, EC nominated Mr Gerald Mlotshwa as a director of TZL.

"The SPA has since lapsed by virtue of effluxion of time and is now no longer valid and enforceable. In the circumstances, in accordance with the terms of the shareholders' agreement, EC hereby withdraws its nomination of Mr Mlotshwa as a director of TZL with immediate effect."

Efforts to get a comment from Dr Makamba since Saturday were fruitless as his phone was unreachable.

He had also not responded to all messages sent to him by the time of going to print.

However, Mr Mlotshwa's lawyers – Mushoriwa Pasi Corporate Attorneys – shot back at Dr Makamba, in a letter dated May 18, 2018, addressed to Mrs Vere.

Mr Itai Pasi, the head of conveyancing, securities and property law, at the law firm, wrote; "We act on behalf of Mr Gerald Mlotshwa. We refer to the letter dated 16 May 2018 addressed to you (Mrs Vere) by the chairman of the Empowerment Corporation (Private) Limited, Dr James Makamba, in which he purports to withdraw the nomination of Mr Mlotshwa as a director of Telecel Zimbabwe Limited, with immediate effect.

"It is our considered view that the purported withdrawal is invalid as it fails to comply with the provisions of section 175 of the Companies Act (Chapter 24: 03), which clearly outlines the procedure to follow for the removal of a director.

"Consequently, a purported removal other than that contained in the Companies Act is void and is of no force and effect."

Mr Pasi said Mr Mlotshwa had not resigned from the board and remains one of Telecel Zimbabwe directors until proper processes were undertaken to trigger such removal in terms of the law.

Officials told The Herald Business at the weekend that Dr Makamba's grudge with Mr Mlotshwa was sparked by the latter's move to block his nemesis and another director Dr Mutasa from accessing $15 000 each in board fees per month.

Dr Makamba and Dr Mutasa, were at some point arrested for fraudulent activities at the telecommunications firm.

Investigations have revealed that Dr Makamba wrote the letter to dismiss Mr Mlotshwa without the consent of other EC directors.

Recently, Dr Makamba was dragged to court by Mr Manyere over a $2,7 million debt, which Mr Mlotshwa had initially undertook to takeover on condition that the EC chair transfer equivalent shares.

Mr Manyere was forced to go to court as part of efforts to recover his money after Dr Makamba failed to transfer the shares to Mr Mlotshwa.

Dr Makamba, who was in self-imposed exile for over a decade, returned to Zimbabwe last year and was in good books with Mr Mlotshwa until the recent fallout.

Mr Mlotshwa refused to comment on the issue.

Telecel, the country's third largest mobile phone company by subscribers, has been mired in confusion since its formation particularly regarding the ownership of EC shares.

CEOs have been fired regularly at the mobile company. Government owns a 60 percent stake in Telecel after buying out VimpelCom recently through ZARNet in a $40 million transaction.

- chronicle

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Emmerphoria marks Zimbabwe's policy shift

by Bruce Zvandasara | 20 September 2018 | 132 Views

Zimbabweans pin hopes on ED as he attends maiden UNGA Summit

by Nicole Hondo | 20 September 2018 | 110 Views

UNGA and Zim's international incorporation

by Anesu Pedzisayi | 20 September 2018 | 93 Views

Mnangagwa fortifies his political power

by Staff reporter | 20 September 2018 | 156 Views

Zimbabwe stops luxury car purchases for cholera fund

by BBC | 20 September 2018 | 116 Views

ZAPU position on implementation of Devolution of Power

by Zapu | 20 September 2018 | 94 Views

Mnangagwa makes maiden UNGA appearance

by Elijah Chihota | 20 September 2018 | 82 Views

PHOTO: Chiwenga's hand swollen

by Staff Reporter | 20 September 2018 | 221 Views

Mnangagwa arrives in New York

by Staff reporter | 20 September 2018 | 121 Views

Zimbabwe's impressive cabinet line-up under a severe parliamentary vaccuum

by Reginald Thabani Gola. | 19 September 2018 | 357 Views

Mnangagwa boycott the way to go, says MDC veterans

by Stephen Jakes | 19 September 2018 | 383 Views

Mudede hunts down staffer who revealed blacklist

by Staff reporter | 19 September 2018 | 460 Views

'Mnangagwa inherits Mugabe's anti-Gukurahundi traits'

by Staff reporter | 19 September 2018 | 250 Views

Mnangagwa snubbing the way to go

by Stephen Jakes | 19 September 2018 | 227 Views

Shame on you MDC MPs

by Munya Shumba | 19 September 2018 | 209 Views

Kariba on high Cholera alert

by John T Chirinda | 19 September 2018 | 153 Views

Parent involvement helps students to do well

by Agencies | 19 September 2018 | 132 Views

$6000 salary for MPs

by Staff Reporter | 19 September 2018 | 302 Views

Mnangagwa tours Glen View cholera centre

by Staff reporter | 19 September 2018 | 171 Views

Unresolved ethnicity conflict haunts Bulawayo

by Staff reporter | 19 September 2018 | 135 Views

Bulawayo's 'foreign' mayor remains unfazed

by Staff reporter | 19 September 2018 | 170 Views

Court defers ruling on Nduna's Chegutu West win

by Staff reporter | 19 September 2018 | 165 Views

Zoey SA bound

by Staff reporter | 19 September 2018 | 131 Views

Gukurahundi seeks to eclipse Intwasa

by Staff reporter | 19 September 2018 | 123 Views

Gukurahundi documentary deemed to be carrying inflammatory information

by Staff reporter | 19 September 2018 | 140 Views

Models at Prophet Magaya Prayer Mountain

by Staff reporter | 19 September 2018 | 167 Views

Chamisa turns down Parly invite

by Staff reporter | 19 September 2018 | 273 Views

Chamisa can only have an effective protest if all his MPs boycot Parliament

by Staff reporter | 19 September 2018 | 216 Views

Local govt has crossed difficult path since year 2000

by Stephen Jakes | 19 September 2018 | 127 Views

Ecocash and swipe are gradually being phased out

by Stephen Jakes | 19 September 2018 | 310 Views

So much hate in Zimbabwe, Mnangagwa needs to unite people - Mliswa

by Stephen Jakes | 19 September 2018 | 339 Views

Chamisa's MPs walk out on Mnangagwa

by Staff reporter | 19 September 2018 | 196 Views

Mnangagwa must consider Mthuli Ncube's proposals

by Editorial - newsday | 19 September 2018 | 221 Views

Mnangagwa rejects Mines Bill

by Staff reporter | 19 September 2018 | 180 Views