Published: 04 July 2014

A NUMBER of investors have shown interest in CAPS Holdings, but the pharmaceutical company is caught up in numerous court cases, Industry and Commerce minister Mike Bimha has said.

At its peak, CAPS Holdings used to manufacture 75% of essential drugs in the country and was once listed on the Zimbabwe Stock Exchange.

It shut down four years ago due to undercapitalisation, massive debts and allegations of management malfeasance.

"We are very much concerned that CAPS Holdings is not functioning the way we would want it to be. But there are so many inquiries from investors, both local and foreign, who would want either to get into CAPS or also to come up with a new company all together. But I think I would not want to go into that detail," Bimha told a Parliamentary Portfolio Committee on Industry and Commerce on Wednesday.

"It's very unfortunate that we are where we are. The reason why I want to avoid it is where you have certain matters before the courts, you really don't want to go into detail which might probably jeopardise the process of things."

Last year, the High Court ordered the sale of CAPS Holdings (Ltd) head office through a private treaty after an initial disposal of the property was reversed following a $1,5 million bid by Chinese investors.

Caps Holdings owes CBZ Bank $4 million.

Businessman Fred Mtandah is the controlling shareholder of the company which is involved in the manufacture and distribution of pharmaceuticals.
- newsday

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