Former Hippo Valley Estates chief executive Sydney Mtsambiwa who now chairs First Capital Zimbabwe has dragged Tongaat Hullet (THL) to court over defamation.
Mtsambiwa demands that the company pays him US$500 000 in damages and also retracts its statement which noted that he was at the centre of extorting Tongaat’s sugar sales in Zimbabwe, grossly misinforming investors for several years. His lawyers refute the allegations saying:
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The allegations are wholly untrue and unsubstantiated and have tarnished our client’s name and reputation locally and internationally, as he is a well-respected business executive and director of a number of public entities.
This comes after Tongaat Hulett (THL) released key findings of a PwC investigation two weeks ago which stated that certain senior executives, Mtsambiwa included, initiated or participated in undesirable accounting practices which overstated profits and also overstated certain assets in THL‘s financial statements.
THL also announced intentions to institute civil claims against former and current top executives at Hippo Valley Estates Limited and Triangle Limited, over misstatements in its financial reports.
On Tuesday, THL released its financial results which revealed an almost R11.9 billion reduction in the group’s equity, mainly due to an R7 billion hit from its Zimbabwean business.
More: Equity Axis