Harare businessman Farai Matsika has lost a crucial Constitutional Court (ConCourt) bid to appeal a Supreme Court ruling that favored his cousin and business rival, Moses Chingwena, along with Chingwena’s companies.
The conflict between Matsika and Chingwena centers around the ownership and management of Croco Motors and its subsidiaries.
While Chingwena manages Croco Motors and other businesses, Matsika now oversees Faramatsi Motors and Doves Holdings.
Matsika asserted he owned 30% of the conglomerate, a claim Chingwena disputed. The cousins, who grew up together, built the US$100 million empire before their fallout.
Matsika argued that his substantial contribution to the business entitled him to a 30% ownership, which Chingwena later denied, effectively removing Matsika from the companies without compensation.
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Chingwena countered that Matsika’s legal claims were based on false information and a fraudulent shareholders’ agreement, contending that Matsika lacked the legal standing to bring the case to court.
The courts sided with Chingwena, determining Matsika was not a shareholder and his application did not meet legal standards, thus dismissing it with costs.
Matsika’s subsequent appeal to the Supreme Court also failed after procedural issues were addressed. Matsika then sought a review of the Supreme Court’s decision, arguing it was made by a single judge. The court declined, stating the request was essentially an appeal in disguise.
Undeterred, Matsika applied to the ConCourt for permission to appeal to the highest court. However, the ConCourt, with judges Anne-Marie Gowora, Ben Hlatshwayo, and Bharat Patel presiding, ruled against him, stating Matsika had not demonstrated a strong chance of success on appeal.
The application was dismissed without a costs order.
This ruling concludes Matsika’s legal battle, leaving him feeling exploited by his cousin, while Chingwena maintains a different perspective.
Professor Lovemore Madhuku represented Matsika, while Advocate Thabani Mpofu represented Chingwena and his companies.
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