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Croco Motors suspends CEO

A nasty fight is brewing between Croco Holdings Limited main shareholders Mr Moses Chingwena and Mr Farai Matsika after the latter was suspended as the group chief executive for ordering valuation of the company to determine the value of the business.

Farai Matsika
Farai Matsika

The unpleasant events taking place at the company began early last year when Mr Matsika, a cousin to Mr Chingwena, indicated that he wanted to exit Croco Holdings to concentrate on other business ventures.

Mr Matsika is one of the major shareholders in Doves Holdings, a funeral assurance firm. He owns 30 percent shareholding in Croco, a multi-franchised automotive dealer.

Sources said, Mr Matsika “felt crowded” in terms of decision making after Mr Chingwena brought on board some “new guys” whom he felt were usurping his responsibilities.

It is understood that Mr Matsika told Mr Chingwena that he was no longer comfortable with the turn of events at the company and wanted to leave the group.

He then offered his shares to Mr Chingwena, subject to valuation of the business by auditors.

Mr Matsika would look for alternative buyers if Mr Chingwena was unwilling to buy him out, the source said.

Mr Chingwena, in an apparent attempt to block the sale, is understood to have opposed the proposal.

Out of frustration, Mr Matsika is said to have ordered an audit to determine the net worth of the business and this led to his suspension. Croco Holdings has since appointed a lawyer from a leading law firm to preside over the disciplinary hearing against Mr Matsika.

“What has been clouding the issue is the relation between (Mr) Matsika and Chingwena because they are brothers,” said one source.

“It has been going on for a while, but it is now a real fight after the suspension.

“The young brother (Matsika) wants to move on and to dispose of his shareholding. Mr Chingwena seems to be throwing spanners but Mr Matsika has vowed to fight on.

“He is a shareholder and his suspension might have required unanimous consensus by shareholders.”

No comment could be obtained from the two by the time of going to print yesterday. The Herald