Allied Timbers sues Kanyekanye for US$11m

By Mathew Masinge

Allied Timbers Zimbabwe, is demanding US$10 855 809.54 from its former chief executive, Joseph Kanyekanye, for unlawful conduct, failure to observe procedure and financial prejudice.

Allied Timbers, claims Kanyekanye breached his fiduciary duty regarding payment of Value Added Tax, unlawfully allowing discounts and omissions on the company’s contracts during his tenure.

According to papers filed at the High Court, the company seeks payment through four claims US$14 007, US$3 103 018.40, US$2 765 892.07 and US$4 972 892.07.

In the first claim, the company accuse its former chief of unlawfully purchasing a personal Samsung Tablet, paying himself unapproved per diem trips, paying his children’s school and examination fees without approval and obtaining cash in lieu of leave.

Further claim is for US$3 103 018.40, money which the company believes to have lost after Kanyekanye breached his fiduciary duty regarding Value Added Tax payments that were not accounted for.

On the third claim, Allied Timbers accuse Kanyekanye of causing the company a financial prejudice worth US$2 765 892.07 after he allowed unauthorised discounts on timber.

Allegations on the fourth claim pin the former boss on gross negligent practices for failing to acquit CD Ones for the company’s timber.

“The Defendant’s wrongful and unlawful or omissions led to both financial loss to Plaintiff and loss of huge sums of public funds, the latter owing to nature of the Plaintiff as a parastatal.”

Kanyekanye through his lawyers has entered his Notice of Appearance to Defend the matter.

The case is still pending at the High Court.

Allied Timbers Zimbabwe’s operations involve plantations, harvesting, processing, marketing and selling of both pine and gum tress.

The State-owned company’s operations are concentrated in the Eastern Highlands and Midlands. H-Metro