Telecommunication magnate, Strive Masiyiwa is embroiled in a legal suit, after dragging three compatriot for defamation in a matter relating to the origins of Econet Zimbabwe and its relationship with TS Masiyiwa Holdings (Private) Limited.
Masiyiwa, a London based Zimbabwean businessman and the founder and Executive Chairman of diversified international telecommunications, media and technology group Econet Wireless, on the 13th May 2019 filed an application with South African High Court, Gauteng local Division, Johannesburg with Econet South Africa as the First Applicant, Econet Wireless Zimbabwe Limited as Second Applicant, Econet Global PTY LTD (Mauritius) as Third Applicant and Strive Masiyiwa himself as the Fourth Applicant.
The matter cites Rutendo Benson Matinyarare as the First Respondent, Mutumwa Dziva Mawere as second while third is Pardon Gambakwe. The application seeks an order in the following terms:
5.1 The respondent be indicted from publishing in any form, any defamatory matter, including innuendo, and any injurious falsehoods of and concerning the Applicants, their business and/ or any of the Applicants’ products or services (collectively “defamatory matter,”
5.2 The respondent immediately remove from publication all and any forms of defamatory matter including without limitation from publication via video posts, comments or statements of any media or internet site/s including but not limited to www.youtube, www.gambakwe.com and www.facebook.com (collectively “all media”); and 5.3 The Respondents be ordered to refrain from publishing whether directly or indirectly, all and any defamatory matter on all media.
In his affidavit signed on 24th April 2019 at Sandton Police Client Service Center in South Africa, Dr Kuzozvirava Shumba said this matter involves a factual and legal dispute in relation to the origins of a company called, Enhanced Communications Networks (Private) Limited (Econet Zimbabwe), and its relationship with a company called TS Masiyiwa Holdings (Private) Limited (TSM), a company in which he (Shumba) was represented as a shareholder holding 2.4 percent of its issued share capital per Prospectus, a copy which was attached.
Shumba also reiterate that it is significant that Strive Masiyiwa who is fixed with the knowledge about the issues in dispute chose to hide behind Douglas Mboweni (CEO Econet Wireless Zimbabwe Limited) who purports to have been authorized to represent him in this matter by virtue of a confirmatory affidavit. Shumba also said it is his contention that this application fits into Masiyiwa’s known strategy of hiding his fraud using parties that have no knowledge of the facts that they put before the courts.
Douglas Mboweni on behalf of the Applicants alleges that the following constitute defamatory statements in relation to the affairs of the applicants;
“Mutumwa Zviva Mawewere (Second Respondent) claims that Strive Masiyiwa’s court application to interdict the investigations that Mr. Mawere was heading in relation to corruption allegations that some officers working for First Mutual Life (FML) especially in respect of an unauthorized investment of Z$180 million that resulted in Masiyiwa gaining control of Econet on the back of a contribution by TSM Private Limited (TSM), a company in which Mr. Masiyiwa and his wife, Tsitsi, held about 67. 5% shares in.”
“The article clearly suggest that material falsehoods were included in the relevant prospectus and it is clear from the article as a whole that the allegation is being levelled that the process was tainted and designed to defraud”. Shumba as a financier of the pre- IPO Econet argues that he has personal knowledge which Mr Mboweni does not possess since he was not involved at all at the material period.
“Accordingly, it is part of my complaint that Mr. Mboweni knowingly and wittingly misrepresented facts before the South African Court that the version that Mr. Masiyiwa who associated himself with the application is false and that a careful reading of the prospectus when juxtaposed with the true nature of the facts of this matter will confirm a crime of perjury and defeating the ends of justice.
This application constitutes abuse an abuse of the SA justice system because the correct version is known to Mr. Masiyiwa that his purported shareholding in TSM was based on the fact that TSM, a Zimbabwean registered company that was subject to exchange control limitations was the lawful owner of the equipment that was purportedly acquired by Econet at the IPO stage”.
Daniel Shumba said Mr. Mboweni knew and ought to have known that the basis of this application is based on manufactured facts that are not supported by any reality. “The allegation is made that the fourth applicant (Masiyiwa)’s family company improperly benefited as the result of an “international fraud,” which “resulted in an unjust and corrupt enrichment of the Masiyiwa family and related shareholders of TSM.”
Shumba said the evidence and facts at his disposal confirm that in truth and fact, Mr. Masiyiwa was a driving behind and fraudulent scheme that resulted in gaining the control of a company that he helped fund and more significantly the purported equipment that TSM swapped for shares in Econet was not owned by TSM and in any event TSM had no capacity to procure the equipment in question.
“It is my contention that Messrs. Mbeweni and Masiyiwa knew and ought to have known that the whole IPO was tainted with fraud.” On paragraph 1 of the affidavit Mr. Masiyiwa represents before a Court that he was the majority shareholder of TS Masiyiwa Holdings (Private) Limited (TSM) which he erroneously misrepresented as MASCOM fully knowing that MASCOM was a separate company in which Shumba was a purportedly 25% shareholder at the material time.
“I only become aware of this affidavit a few weeks ago. At all material times, I was made to believe that TSM was a company that was the vehicle of owning the shares in Econet at IPO stage or during 1998. Until then, my understanding was that Mascom was the sole shareholder of Econet yet in this affidavit, Mr. Masiyiwa represents otherwise.
On paragraph 4 Mr. Masiyiwa also misrepresented that Mascom, a company which Daniel Shumba was a shareholder, was a successor to Retrofit (Pvt.) Limited. However, in terms of company law and practice, there is no such thing as a successor of a juristic or entity. “I also draw your attention to a copy of judgement under Case Number SC251/96 in which the Learned Judge Gubbay CJ, stated as follows; TS Masiyiwa (Private) Limited (Mascom) owns the entire share capital in Econet.”
The deponent Daniel Shumba said Masiyiwa is no longer within the reach of the Zimbabwean justice system and wants to abuse the SA system to perpetuate a lie. It is important that the proper facts relating to this matter are investigated properly so that the delayed justice and equity in this matter can be known and ventilated.
The second Respondent Mutumwa Zviva Mawewere also argues that Civil Procedure and the common law in South Africa require that before a party may sue in Court of law, it must prove that it has title to sue. In this case, Mr. Mboweni must prove that he is the right person to sue and depose to factual matters in the cause and also that he has ability or capacity to substitute the fourth applicant.
In this matter, there are no averments made as to how Mr. Mboweni purports to act in relation to the applicants other than the bold assertion that he is CEO of the second applicant, a company that is domiciled in Zimbabwe, while at the same time acknowledging that the other three applicants are situated outside the jurisdiction of Zimbabwe.
A letter authored by the National Merchant Bank of Zimbabwe Limited on 22nd January, 1998 with ref: Exchange Control Application for TS Masiyiwa Investments in Mascom Botswana (Pty) Limited reads;
“This is to confirm that we, National Merchant Bank Zimbabwe Limited, bankers to TS Masiyiwa Holdings (Pvt.) Limited, will obtain Exchange Control Approval from Reserve Bank of Zimbabwe in respect of our client’s investments in Botswana.
We further confirm that our client’s application meets the normal criteria for such approvals from the Reserve Bank. We therefore have no doubt that the Reserve Bank of Zimbabwe will grant Exchange Control Approval for this investment.” The letter was signed by PF Timba Assistant General Manager, Corporate Finance Division.
In the High Court of Botswana Held at Lobatse on the 30th October 1998, in the shareholders dispute DECI Holdings (PTY) LTD 1st Applicant, Portugal Telecom Internacional, SGPS, SA 2nd Applicant and DECI Investment (PTY) Limited 3rd Applicant had dragged Strive Masiyiwa and Mascom Wireless Botswana (PTY) Limited before the court.
Judge Lesetedi had ruled that Mascom is a holder of one of only two cell network licenses issued by the Botswana Telecommunications Authority in the country. The shareholding Mascom and the relationship of the shareholders is governed by a consortium agreement entered into by the shareholders on the 11th day of August 1997 at Harare. This was before Mascom was awarded the licence.
Under the consortium agreement, the shareholding was as follows: (DECI – 36%, PTI – 25% and TSM- 14%). On the remaining 25%, 15% of the ordinary share capital was to be offered to institutional investors of Botswana origin, 5% to Southern African Enterprise Development Fund. At the time of this litigation, the aforementioned twenty- five per centum shareholding had not yet been taken up. The consortium agreement was to be an interim governing agreement pending the signing of a shareholder’s agreement, otherwise it was to lapse in the event of Mascom not being granted a licence.
Lesetedi said the governing contractual instrument is the consortium agreement has been cancelled on the basis inter alia that TSM has not paid its share call. Neither has TSM paid its contribution to DECI Holdings to make its own contribution to Mascom. TSM admits that it has not paid its share call although it now says the funds are available.
“It appears to me that if PTI had a prima facie right to cancel the agreement, then it appears to me that due to the public interest in Mascom, it is very important that an order be granted for the two companies to run with some semblance of normality in the interim pending the final determination of this matter.
Mascom was the first mobile telecom company Masiyiwa founded. He founded the company 21 years ago, few months before he established Econet Wireless in Zimbabwe. It is Botswana’s largest mobile operator with a reported 1. 7 million subscribers. Earlier in March, Econet Group spent $300 million acquiring a 53% stake in Mascom from MTN Group, thereby increasing its stake from 7% to 60%. The deal is expected to be concluded anytime soon as regulatory approval is at its final stages.
Earlier this year during his visit to Botswana and hosted by President Mokgweetsi Masisi Zimbabwe’s richest man, announced that his company, Econet Group, will list Botswana mobile network operator, Mascom, on the nation’s stock exchange later this year.
Speaking at a press conference in Gaborone, Masiyiwa said that by October this year, he intends to list some of Econet’s Mascom shares on the Botswana Stock Exchange in what he believes will be one of the biggest flotations on the bourse. “This is what I have always wanted to do …I have never held enough shareholding to push it through,” he told reporters.
On his Facebook page, Masiyiwa said that anyone who can raise $10 should be able to buy shares in Mascom. “In what I hope will be the biggest public listing ever undertaken in Botswana, I want to sell shares to anyone who can raise about 100 pula ($9.36),” Masiyiwa said.
After falling to close the gap on Arsenal by losing to a record breaking goal by Kane at the Tottenham stadium.Manchester City now find themselves being charged by the Premier League with more than 100 breaches of its financial rules following a four-year investigation.
According to BBC , it has referred the club to an independent commission over alleged rule breaches between 2009 and 2018 , and also that Man-city has not been co-operating since the investigation which started in 2018 .
BBC further states that The commission can impose punishment including a fine , points deduction and expelling the club from the Premier league.
The alleged breaches include , breaching rules for requiring full details of manager remuneration,from 2009-2010, to 2012-2013 seasons when Roberto Mancini was in charge . Also player remuneration between 2010-2011 and 2015-2016.
The Premier league stated that City breached rules related to UEFA regulations , including Financial Fair Play , from 2013-2014 to 2017-2018 ,as well as Premier League rules on profitability and sustainability from 2014-2016 to 2017-2018
South Korean Ambassador in South Africa has donated e-learning equipment through Botswana Red Cross Society (BRCS) to Tlamelong Rehabilitation Centre in Tlokweng recently, in a bid to fine tune the student’s textile skills.
When talking at the handing over ceremony, Chull-Joo Park, said they agreed with BRCS to give out e-learning equipment to better the training skills of students living with disabilities.
“With the Information and Communication Technology (ICT) equipment and job training skills, we will be able to help the students living with disabilities to do e-learning and to better their education and job training,” said Chull-Joo Park.
It was revealed that the South Korean Embassy approached BRCS with the intent to donate equipment and educational material that includes an embroidery machine, photo copier machine, tablets and interactive boards to be utilized by the trainees.
The industrial printer is a machine that works with embroidery machine to print designs for clothing and it will enable the learners to have more material available to them to facilitate learning.
Through this embroidery machine, students will be exposed to better technologies which ultimately improve the quality of materials they produce. It will also allow students to learn business skills and run profitable ventures.
Smart board gadgets will provide the students with an elevated learning process to be fostered by e-learning. The gadgets provide a more visual element to the learning process, which in turn improves learner mental retention.
Tlamelong Rehabilitation serves the marginalized and underserved less privileged persons living with disability in Botswana. The center offers boarding services, vocational training, social services, physiotherapy and rehabilitation services for young people living disabilities aged 18-35 from across the country over a period of two (2) years per cohort which has a maximum intake capacity of 35. BRCS through International Federation of the Red Cross and Red Crescent Societies (IFRC) have managed to create great working synergy with the South Korean Embassy in Pretoria based in South Africa to support or augment the National Society’s Rehabilitation Centre’s learning challenges.
For his part, BRSC Secretary General Kutlwano Mokokomani said they are delighted to convey their gratitude as BRSC to the South Korean Embassy for donation and they look forward to an enduring partnership for such worthy causes.
“South Korean Embassy’s great gesture will enable trainees to thrive, to fulfil their dreams to become a reality as this equipments will go a long way in creating great impact in the lives of trainees and their families. We wish to convey our sincere gratitude to the South Korean Embassy for their noble gesture of donating the E-learning equipments.”
BRCS offers rehabilitation services spread across three (3) areas in Botswana being Sefhare Stimulation center in Sefhare, Tshimologo stimulation center in Francistown and Tlamelong rehabilitation center in Tlokweng.