HARARE - A Harare magistrate has granted Caps Holdings boss Frederick Mtandah bail reprieve, allowing him to go back to the company and save the pharmaceutical firm from collapsing.

Mtandah is accused of defrauding Caps Holdings of $25 million through deregistration of 50 local drug formulas and subsequently registering them under Caps International.

The Caps boss, as part of his bail conditions had been ordered not to interfere with directors, employees or day-to-day running of Caps Holdings.

Cabinet had resolved to take over the company’s debts to save it from collapsing, but Mtandah contested his bail condition on that basis.

Magistrate Anita Tshuma yesterday ruled that his presence can assist in resuscitating the company.

“Where the Cabinet feels that the government should save Caps from collapse, it becomes an issue of national interest. The state has not explained why the accused should be stopped from going to Caps. The court has an obligation to do justice and investigations cannot be carried on forever,” said magistrate Tshuma.

Meanwhile, Mtandah awaits trial, which is expected to kick off on November 21 at the Harare Magistrates’ Courts. - Tendai Kamhungira