The acquisition of the iconic St Anne’s Hospital by
Catholic Church through Sisters of the Little Company of Mary (LCM), has come
under the spotlight after it emerged due processes, including approvals from
shareholders, were allegedly not followed, Herald Finance & Business can
reveal.
St Anne’s, an up market medical facility in Harare, is 80
percent owned by CAPS Healthcare Limited, while the remaining shareholding is
owned by Doctors Trust. CAPS Healthcare became a separate entity after the
de-merger of CAPS Holdings in 2011.
Of the de-merged entities, the Government offered to
by—apiece—68 percent shareholding in CAPS Manufacturing, a medical drugs
producer and CAPS Healthcare.
The transactions are yet to be concluded after its emerged
the Government hasn’t paid for the shares.
St Anne’s is currently undergoing renovations after LCM, in
partnership with Trustees of Solidarity Trust Zimbabwe (SOTZIM), agreed to
temporarily set up a Covid-19 response centre to complement Government’s
response efforts to the pandemic, which has killed about 380 000 people
worldwide and infected nearly 6,3 million.
Four people have succumbed to the ailment in Zimbabwe. The facility will have 100 beds, including those catering
for intensive care and high dependence patience.
It is understood that the Reserve Bank of Zimbabwe (RBZ),
acting on behalf of the Government entered into an agreement with LCM for the
sale of St Anne’s hospital without consulting shareholders.
Businessman Fred Mutanda owns 20 percent shareholding in
CAPS Healthcare and if the Government fails to concludes the CAPS Holdings
transaction, Mr Mutanda’s shareholding will in increase to 88 percent.
While the Government has persistently claimed 68 percent
ownership of CAPS Manufacturing and CAPS Healthcare Limited, Mutanda revealed
last week that what only exists was an agreement for the purchase of the shares
of the two companies.
Herald Finance & Business understands that a meeting
between RBZ governor Dr John Mangudya and Mr Mutanda was held on Monday, where
the central bank promised to make a new offer.
“The purported acquisition of St Anne’s is illegal because
the RBZ ignored other shareholders; no EGM (extraordinary general meeting) was
held,” said one source who declined to be identified citing confidentiality of
the matter. “So for the nuns (Catholic sisters) to claim that they own the
hospital is wrong. The transaction has to be regularised.”
“What also complicate the transaction is that the 68
percent the Government claims to own has not yet been paid for assuming that the
RBZ entered into the agreement with the nuns on the basis that Government is
the majority shareholder.
“Even though, the minority shareholder of CAPS Healthcare
will still need to be consulted,” another source, who also requested not to be
identified, said. Several calls seeking a comment from Dr Mangudya and Mr
Mutanda were not answered.
Already, Mr Mutanda is challenging CAPS Manufacturing’s
debt take over by ZAMCO, arguing it is the RBZ that has obligation to settle
the debt since it owes CAPS US$7 million.
The debt arose after RBZ in 2008 ordered CAPS to release
all its drugs to State-owned National Pharmaceuticals.
Mr Mutanda is resisting the move by ZAMCO to convert the
debt into equity. The central bank set up ZAMCO in 2015 as a special purpose
vehicle established to hive off non-performing loans from banks that were
groaning under the burden of toxic obligations. Herald
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