SPECIFIED Kingdom Meikles Africa Ltd (KMAL) chairman John Moxon tore to shreds claims by Nigel Chanakira that he is entitled to 51% of the company in indigenisation option rights and called the banker â€œdelusionalâ€.
In a telephone call this week, Moxon was asked to comment on a letter obtained by the Zimbabwe Independent written by Nigel Chanakira in which the banker claimed that his company, Valley Field, holds up to 51% of KMAL in indigenisation option rights.
Moxon accused Chanakira of dereliction of his fiduciary responsibilities as KMALâ€™s chief executive officer (CEO) and director because â€œif such a right exists it is so material that it would have required shareholder approval and disclosureâ€.
Moxon said: â€œI find it amusing that as a man who declares his fiduciary responsibilities to shareholders as a director and CEOÂ â€“â€“ has suddenly conjured up an option right so material that it would clearly have required shareholder approval and disclosure.
â€œI have never heard of such an option agreement – and certainly no such disclosures have ever been made to shareholders, nor have shares requiring shareholder approval been issued to entertain such an option.â€
He added: â€œThe insertion of such a statement is sinister and manipulative. What kind of â€˜optionâ€™ has no strike price, no expiry price, no cost and no conditions? You canâ€™t create an option by writing a sentence in a letter.â€
Moxon and Chanakira have been at each otherâ€™s throats since last year after the latter accused the former of externalising US$18 million and R21,2 million.
Chanakira reported Moxon to the Criminal Investigation Department (CID) serious fraud squad resulting in the specification of the KMAL chairman. As part of his plan to resolve the impasse, Moxon urged both KMAL and KFHL boards to resign and allow shareholders to constitute a representative board that was not intimidated by Chanakira.Â
Â Asked about reports that all the directors of KMAL are supporting Chanakira, Moxon said: â€œI believe Nigel and the other directors are in violation of their fiduciary responsibilities to shareholders. They have collectively and in collusion acted irresponsibly.
â€œWhat the interests of the directors who backed Chanakira are, I donâ€™t know â€“â€“ but they are now warned that if they continue to defame me and my family, I will find their assets anywhere in the world and sue them for every penny they have if I have to spend every penny I have. Even if their excuse was that they were intimidated â€“â€“ their choice was and is still to resign â€“â€“ and given that they havenâ€™t, they were clearly and knowingly violating their fiduciary responsibility to shareholders,â€ Moxon said.
KFHL merged with Meikles Africa Ltd last year but a few months after the merger, Moxon called for an extraordinary general meeting to have Chanakira, and two other non executive directors removed from the board. According to Moxon, Chanakira reneged on a plan to refinance the groupâ€™s prestigious Cape Grace Hotel located in Cape Town and it became the last straw to an already strained business relationship.
BY CHRIS MURONZIÂ