Maravi

(TALKZIMBABWE) Masunda faces probe for "protecting" Moxon

Masunda faces probe for "protecting" Moxon
TH/TZG reporters
Thu, 24 Sep 2009 04:53:00 +0000

KINGDOM Meikles Limited chairman and current non-executive Mayor of Harare Mr Muchadeyi Masunda has fallen under the spotlight of KML investigators for allegedly agreeing to demands by specified former chairman John Moxon to alter the company’s financial results in a bid "to clear his name".

Econet Wireless chairman Mr Tawanda Nyambirai has also fallen under the radar of KML investigator, BCA Consulting, for "the dealings" between him and Moxon, now self-exiled in South Africa.

BCA Consulting are the Government-appointed investigators probing allegations of foreign currency externalisation by Moxon. This has resulted in the specification of all KML subsidiaries to allow for the investigations.

BCA alleges Moxon connived with Mr Masunda and other KML directors to alter the financial statements in an attempt to clear Moxon’s name.
The alterations were meant to accommodate changes required by Moxon.

BCA says Econet, which owns 10 percent of KML was in support of this attempt.

KML auditors have reportedly indicated unless there is evidence to justify adjusting the financial statements approved before the demerger, no adjustments were going to be made on the financial statements.

Apparently, two sets of financial results were going to be presented at the company’s next annual general meeting.

The first set being the financials prepared by the auditors with no alterations while the second set would have had changes "to accommodate adjustments required by Mr John Ralph Thomas Moxon".

With Econet owning 10 percent of KML and the Meikles family owning 42 percent, the adjusted financial results would have received a majority endorsement.
"The issue of trying to adjust the financial statements to reflect (Mr) Moxon’s wishes is being probed further," said BCA Consultancy.

"Available evidence point at the fact that you as chairman of KML have agreed to alter the chairman’s statement to incorporate changes requested by Mr John Moxon.

"Please be advised that this matter is being probed further and any changes you make to the chairman’s statement should be adequately supported by evidence warranting such changes."

In the interim, BCA said it would also investigate dealings between Mr Nyambirai and Moxon.

Said BCA: "Evidence available to us suggest that there are a number of transactions between the two which are connected to the investigations."

BCA has since called for the cancellation of the Extra Ordinary General meeting, which had been scheduled for today. The EGM sought for approval to have former KML CEO Mr Nigel Chanakira and directors Mr Callisto Jokonya and Ms Sibusisiwe Bango removed from the board.

Mr Chanakira said he would step down on condition that certain unfulfilled legal and administrative formalities of the demerger between KFHL and Meikles Africa have been completed.

Using power invested in them in terms of Prevention Corruption Act (Chapter 9:16), the investigators said the EGM required their authority.

"For the avoidance of any doubt, you as the chairman of KML has no authority to preside over the EGM, the same applies to the rest of the board members and any members including third parties."

BCA Consulting said their position had been motivated by Moxon’s continued involvement in the affairs of KML which was allegedly prejudicial to the company, particularly minority shareholders.

BCA attributed the board’s decision to withdraw litigation against Moxon for the recovery of US$22 million paid to Coolbay and Mentor Holdings as an example of Moxon’s continued influence at KML.

The investigators further allege that the reconstituted KML board was appointed by Moxon on July 7 2009 at a meeting held at Cape Grace Hotel in Cape Town, South Africa. The meeting was chaired by Moxon.

Most of the decisions were "refereed and decided" by Moxon for implementation without investigators’ approval.

"The evidence available to the investigators clearly shows a lot of bad faith, connivance and outright misrepresentation on the part of some of the board members of KML, and Andy Lane Mitchell, yourself (Masunda) and other third parties," said BCA Consulting.

Labels: JOHN MOXON, MEIKLES GROUP, MUCHADEYI MASUNDA

posted by MrK @ 5:19 AM