Matsika suffers fresh setback in Doves shareholdings saga

Source: Matsika suffers fresh setback in Doves shareholdings saga – NewsDay Zimbabwe


BUSINESSMAN Farai Matsika has suffered a fresh setback in the Doves shareholding saga after the High Court suspended a court order which was allegedly obtained through fraud.

Matsika and his co-shareholder Phibeon Busangabanye are embroiled in a nasty ownership wrangle for the funeral services provider.

In his court application, Busangabanye alleged that Matsika and Munyaradzi Kereke connived to mislead the High Court and spuriously obtained a court order confirming the cancellation of the agreement of sale for the acquisition of shares in Doves Holdings.

The court papers showed that Matsika fraudulently entered a consent to Kereke’s application without a resolution from the company.

Busangabanye also argued that both Matsika and Kereke allegedly misled Justice Philda Muzofa into granting an order by not disclosing that the main shareholding dispute was already pending before the High Court.

In a fresh judgment that suspends the operation of Kereke’s order, High Court judge Justice Emilia Muchawa said: “What is evident is that Farai Matsika and Dr Kereke have simply made about-turns in the consent order and in HC 3364/20.”

Added Justice Muchawa: “Matsika has fraudulently consented to the order against its interests without getting requisite authority from the second applicant (Busangabanye) as co-director. It was clear that there could not be a meeting of directors and expect him to vote against his own interests.”

The judge prohibited Kereke and Matsika from dealing in Doves shares.

She also chastised Kereke for attempting to frustrate her adjudication of the case by writing letters addressed to her superiors.

“Undeterred, Dr Kereke penned another letter on November 25, 2021, this time marked to the attention of the Judge President. He did this well knowing that judgment had been reserved in this matter,” Justice Muchawa said.

“As someone represented by legal practitioners who briefed an advocate to argue his matter, Kereke’s behaviour is despicable. Kereke is no stranger to this court and he should know that his behaviour is unacceptable.”