Mujuru demands retraction

via Mujuru demands retraction | The Herald November 4, 2014

ACTING President Joice Mujuru’s family-run business International Travel Shops Africa (ITSA) has threatened legal action against The Herald over a story it published on the VP’s illicit business dealings.

Surprisingly it is ITSA which was prejudiced of money that was meant to accrue to the company, but ended up as illegal cash payments to individuals, among them the VP, in violation of the Companies Act.

Dr Mujuru allegedly received and signed for thousands of dollars in illegal cash payments from Kenyan and Indian financiers who had invested in the family-owned duty-free shops at the Harare International Airport.

She allegedly later elbowed out the investors in a manner that bordered on extortion and abuse of office despite them having injected over US$1 million in the business.

Through its lawyers Masawi and Partners, ITSA wrote to The Herald demanding a retraction for the article which they say was false and defamatory and threatened to slap the paper with a US$5 million lawsuit if that is not done with seven days.

We, however, stand by our story.

“We are instructed to write to you in connection with the front page headline in the Herald of 30th October,” read the letter dated October 31, 2014.

“We are instructed to demand as we do hereby do that you do a retraction and apology to International Travel Shops as the article is not only false, but malicious and defamatory of our client.

“As the contents thereof imply that our clients are extortionists who used underhand tactics and political pressure to elbow out Suzan General (Trading) from the business, yet the truth of the matter is that the dispute is purely a commercial dispute wherein both parties are represented by lawyers.”

Masawi and Partners said the article also implied that US$1 million exchanged hands between the parties.

“We are accordingly instructed to demand as we do hereby do that if there is no retraction and apology within 7 days hereof, we shall proceed with summons for damages in the sum of five million United States dollars.”

According to reports, not only did the Dr Mujuru receive cash payments in violation of the Companies Act and income tax regulations.

She also stands accused of having abused her office and political status to compel the lawyers of the aggrieved party to unethically renounce agency, in addition to running the investors out of town soon after they had pumped in over US$1 million in capital and made tens of thousands of dollars in cash payments to the VP, her daughter Nyasha De Campo and Mr Tirivanhu Mudariki, who is listed as a director in International Travel Shops.

Musunga and Associates were the lawyers representing Suzan General Trading (SGT) at the time since 2011.

Despite receiving US$5 000 in legal fees, Musunga and Associates dumped their client and started acting for VP Mujuru in the dispute, raising questions of unethical conduct.

According to information in our possession Dr Mujuru had interests in duty-free shops at the Harare International Airport trading as International Travel Shops Africa (Pvt) Ltd with Tirivanhu Mudariki as director, along with VP Mujuru’s daughter Nyasha De Campo (nee Mujuru), two Kenyans Mukesh Vaya and Nilesh Ashkal Kantil as well as Babu RM a citizen of India.

Though the VP is not listed among the directors, her name features prominently in the documents.

Contrary to provisions of the Companies Act, cash payments were made directly to the directors, including VP Mujuru who was not shown on company documents as either a director or a shareholder.

Dr Mujuru, Mrs De Campo and Mr Mudariki each received the payments, which they personally signed for on the documents in our possession, in the following amounts:

Dr Mujuru received US$70 000 (part of the acknowledgement of receipt inset) , Tirivanhu Mudariki US$100 000 and Nyasha Noreen Nyorova US$70 000 as at end of January 2012.

It is, however, not clear whether Zimra got its dues though indications are the tax laws were violated.

During her highly subscribed “Meet the People” rallies in all 10 provinces, First Lady Amai Grace Mugabe rapped Dr Mujuru and called on her to resign or risk being fired for alleged corruption, abuse of office, extorting shareholding from companies and demanding 10 percent bribes from potential investors.