Africa-Press – Zimbabwe. A SAFARI operator has been taken to court by its major shareholder over the suspected swindling of US$18 million from the company.
Fin Marketing, the shareholder, cited Wilderness Camps of Zimbabwe as the respondent in its application.
Fin Marketing is seeking a ruling directing the safari operator to engage Kreston Zimbabwe to conduct a forensic audit within 14 days.
Fin Marketing, represented by Edison Kadzombe, argued that Wilderness Camps of Zimbabwe’s affairs are being conducted in a manner prejudicial to its interests.
Fin Marketing became a 33% shareholder in an entity called Mana Pools Wildlife Safaris (Private) Limited.
In June 1998, Mana Pools secured a prestigious lease from the then Environment and Tourism minister to operate a safari site at a camp site known as Ruckomechi.
The lease was ultimately transferred from Mana Pools to Wilderness Camps of Zimbabwe, resulting in Fin Marketing becoming a direct shareholder of the respondent.
Kadzombe remained a direct shareholder.
The applicant submitted that, through its representatives and on several occasions, it raised concern with Wilderness Camps of Zimbabwe regarding the management of its affairs.
It submitted that recently and in November 2024, Fin Marketing wrote to the respondent requesting that a forensic audit be undertaken.
Wilderness Camps of Zimbabwe, however, opposed the idea of a forensic audit and prohibited the applicant from taking further action insofar as the respondent’s affairs are concerned.
“As things stand, not only has the respondent refused to be held accountable by a shareholder, member, but it has effectively shut the applicant out regarding its affairs and the manner in which its operations are being run,” Fin Marketing submitted.
“The applicant has, therefore, been left with no option than to approach this honourable court as it has done, in terms of sections 223 and 225 of the COBE [Companies and Other Business Entities] Act, seeking protection in terms of the law.”
Fin Marketing submitted that the respondent is a provider of luxury safari experiences and has several camps around Zimbabwe, with rooms costing up to US$1 500 per night.
“Naturally, the respondent attracts a significant number of foreign tourists and earns its revenue in foreign currency.
“Since the applicant’s involvement in the respondent, however, there has never been any dividend declaration to members or shareholders,” the applicant submitted.
“During the same period, the respondent has furthermore allegedly incurred over US$18 million in liabilities, with minimal investment into the business.
“What has become apparent is that, while the respondent is registered in Zimbabwe, the registration is on paper only.
“In reality, however, a complex corporate structure incorporating a web of interrelated companies both local and international has been applied in order to enable the respondent to maintain the bulk of its revenue offshore through transfer pricing, among other financial schemes.”
Added the applicant: “The manner in which the respondent is structured enables it to generate money from Zimbabwean operations, but spirit the proceeds away to other foreign jurisdictions, primarily under the guise of contrived ‘loans’.
“Why, or how else, would an entity continue to operate for several years, despite being ‘non-profit making’ and allegedly saddled with high unexplained levels of debt?
“Evidently, the financial rewards associated with the respondent’s Zimbabwean operations are being shared elsewhere, to the applicant’s exclusion.”
Fin Marketing submitted that a forensic audit may uncover, among other things, corporate governance failings, tax evasion, fraud, externalisation and abuse of power and or oppression.
“The respondent has, over the years, also orchestrated several unauthorised changes of registered camp-site holders.”
The application is pending.
For More News And Analysis About Zimbabwe Follow Africa-Press
