Deutsche Bank Has Regrets

Innscor slapped with record $40.6 mln penalty for Profeeds acquisition

According to the Commission, Innscor contravened the merger notification provisions in the Competition Act. The contravention attracted a hefty penalty of $40.59 mln with the Commission also directing the group to divest out of the business.

CTC is a statutory body established under the Competition Act [Chapter 14:28] with twin mandates of implementing Zimbabwe’s competition policy and execution of the country’s trade tariffs policy, but the primary objective is enforcing the Competition Act.

In a letter to Innscor’s investment vehicle, Ashram Investment (Private) Limited, dated May 21, 2020, Competition and Tariffs Commission director Ellen Ruparaganda said the merger involving Profeeds, Produtrade and Ashram be prohibited and that Ashram divests from Profeeds immediately.  A penalty amounting to $40.59 mln being 6.43% of Innscor’s turnover for 2018 be imposed on the entities for contravening the merger notification provisions in the Act.

The reasons for the penalty are not given in the correspondence but the quoted section says that if notifiable mergers do not meet the requirements set out in the Act then the Commission (using Section 34A) can impose a penalty which does not exceed 10%  of either or both of the merging parties’ annual turnover in Zimbabwe.

Last year, CTC launched an investigation into the proposed acquisition of Profeeds and Produtrade Pvt Limited by Innscor’s investment vehicle Ashram Investments Pvt Limited after receiving notification of a merger. The Profeeds issue has been under on and off investigations for just over six years.

Profeeds and Produtrade were established by the Philp brothers in 2007 but because of the need to capitalise and expand its operations, Innscor bought shareholding in the business and has since grown it exponentially and that would make divesting not only complicated but retrogressive in the process exposing Zimbabwe’s unattractiveness as an investment destination.

The objective of competition law under free markets is to serve public interest while also balancing with economic efficiency. In cases where the two conflict one would expect the Commission to be practical and consider what would be the best interest for the country: its public and its economy. The Commission should protect business against anti-competitive practices without stopping good business sense especially at a time when offshore funding is quite limited.

Economies are not grown by stifling the growth of big business but by providing small business the environment to access capital. The stockfeed industry is currently sitting at 70% of average annualised production of 200 000tonnes. This makes it small in comparison to South Africa which averages 3.5 mln tonnes a year. In 2018, CTC blocked NatFoods plan to merge with Profeeds under a structure that would have created African Feed Mills.

CTC also blocked the acquisition of Innscor’s 25% shareholding in Capri by Annunaki Investments. CTC said it blocked the transaction using the deep pocket theory of harm. According to the Commission, Capri is a dominant player in the relevant market and is owned by Innscor, a deep pocketed conglomerate company. “The acquisition of Capri by Annunaki gives another deep-pocketed company SSCG Holdings, control over Capri, which would further enhance Capri’s financial position in the relevant market…

“…The Commission therefore established that there was a possibility of Capri gaining financial strength to the extent of being in a position of engaging in predatory pricing. This in turn restricts entry of new players in the market, hence substantially preventing or lessening competition in the market.” Annunaki is however an Innscor-linked investment vehicle.  The Commission penalised Innscor just under $850 000 for the Capri transaction.

Innscor said it was still to come up with a position on the matter, but it would respond at the appropriate time.

Post published in: Business

Morning Docket: 06.03.20

(Photo by Marc Piscotty/Getty Images)

* Carole Baskin has been awarded the zoo once owned by Joe Exotic to satisfy a judgment from long-standing litigation between the two. Baskin should go after Exotic’s country music songs next. [BBC]

* A government lawyer says that the number of prisoners with COVID-19 at a federal lockup is likely seven times higher than previously reported. [ABC News]

* A Florida man has been convicted of fraud for claiming he represented The Village People and fleecing a casino out of $12,000. “It’s fun to stay at the ‘J.A.I.L.’” [Fox News]

* Google faces a $5 billion class action for tracking the internet usage of users even though browsers are set in “private” mode. [Reuters]

* Attorney General Barr is purported to have personally ordered protesters removed so President Trump could visit a church near the White House earlier this week. [CNN]

* A company has been ordered to pay $3.6 million in attorneys’ fees for their adversary on top of a $600,000 judgment and paying their own lawyers $5 million. Bet they wish they just settled the case earlier. [Chicago Law Bulletin]


Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at jordan@rothmanlawyer.com.

Police add third charge as Advocate Mpofu fails to appear in court

Advocate Thabani Mpofu

Mpofu’s lawyer Beatrice Mtetwa said there was radio silence from the police until about 4PM, when they said they were adding a third charge.

“He was cooped up in the cell all day until they came with a new charge around 4PM. Now they accuse him of stealing a client from another law firm,” Mtetwa said.

Meanwhile, the Law Society of Zimbabwe led demands for Mpofu’s unconditional release.

Mpofu was arrested on Monday after presenting himself at a police station after armed police twice raided his homes. He was charged with two counts of defeating the course of justice.

Police allege that he falsified an affidavit from someone who “does not exist” to challenge the appointment of Prosecutor General Kumbirai Hodzi last year.

That application was abandoned, before being refiled, with a Harare lawyer Joshua Chirambwe now the main applicant. On the second charge, police say the affidavit used by Simbarashe Zuze, the applicant in the first case, was “plagiarised” by the Chirambwe.

Mtetwa said Zuze existed and had been spoken to by police before. The second count disclosed no offence, she said.

In the third charge added on Monday, police allege Mpofu conspired with Harare lawyer Everson Samukange, who quit Venturas and Samkange law firm without notice in 2018, to divert a file for client who was at that law firm into their own client.

“Advocate Mpofu will deny that charge,” said Mtetwa.

The Law Society of Zimbabwe expressed “profound concern”.

“The Law Society of Zimbabwe is anxious and concerned over the motive behind the arrest and detention. The Society recognises and stands by the principle that a lawyer must never be associated with the cause of his client,” the body regulating the profession said.

Top South African advocates Dali Mpofu and Thembeka Ngcukaitobi joined a chorus of international condemnation over the arrest.

The arrest of Advocate Mpofu “should outrage all believers in the rule of law in Southern Africa,” Ngcukaitobi said.

Dali Mpofu said President Emmerson Mnangagwa “has now lost all his marbles”, adding on Twitter: “He also lost an election by the way! SADC and AU where are you? All that rhetoric about Africa Day last week was just empty twaddle?”

Mtetwa said police – who can only hold Mpofu for a maximum 48 hours within which they should present him to court – promised to present him to the Harare Magistrates Court at 8.30AM on Wednesday.

Police, apparently fearing protests outside the court, blocked traffic into Harare on Tuesday, although insisting that they were only enforcing the Level 2 coronavirus lockdown.

Mpofu shot to prominence when he represented MDC leader Nelson Chamisa in his unsuccessful bid to overturn Mnangagwa’s victory following a disputed election in July 2018.

Post published in: Featured

Post-Mugabe, human rights abuses continue in Zimbabwe

The recent passing of one of Zimbabwe’s foremost human rights defenders, Mike Auret, has rekindled questions of the potential role of faith-based organizations in addressing the country’s long history of human rights abuses. After leaving political life in Zimbabwe, in 2003 he emigrated to Ireland, where he died this past Good Friday.

For many years, Mr. Auret led the Catholic Commission for Justice and Peace and was at the forefront of documenting atrocities under Prime Minister Robert Mugabe in the 1980s that left more 20,000 people dead. That era still haunts the present administration as activists press government officials to acknowledge and atone for past human rights abuses.

In the post-colonial era they include the murder and attempted murder of opposition leaders and their supporters dating back to the 1980s and 1990s. In the early 2000s, under a controversial land reform program, violent farm invasions led to the killing of white farmers by ruling party supporters.

As under Mugabe, Zimbabwe’s contemporary political elite continue to trample on civil libertie with what the same disregard of censure from both local moral authorities and international human rights organizations.During the widely condemned Operation Clear the Filth in 2005, millions of homes were bulldozed under Mugabe’s orders, justified then as an effort to demolish illegal construction and contain criminal activity, and during the run-up to the 2008 general elections the attempted murder of longtime Mugabe opponent Morgan Tsvangirai was accompanied by an escalation of political violence against the opposition.

Now the nation’s contemporary political elite continue to trample on civil liberties, critics charge, with what appears to be the same disregard of censure from both local moral authorities and international human rights organizations.

After the fall of Mugabe in November 2017, incoming president Emmerson Mngagagwa made commitments to undo the dark past of the human rights violations of his mentor—he had served as vice president under Mr. Mugabe—pledging that he would be a “listening president” and that political violence and state-sponsored human rights abuses would be a thing of the past.

Instead, human rights monitors say, there has been an escalation of abuse. Human Rights Watch observes that “despite President Emerson Mnangagwa repeatedly voicing his commitments to human rights reforms, Zimbabwe remained highly intolerant of basic rights, peaceful dissent, and free expression in 2019.”

Political abductionstorture of comedians who poke fun at the regime, shooting of demonstrators, and charges of treason and arrests of journalists all have become daily fare under Mr. Mngagagwa, according to local media.

Rights abuses have only grown more intense as social restrictions engendered by the Covid-19 crisis took hold in recent months. Lockdown violators have suffered under the heavy-handed enforcement by the state security apparatus. Many allege enforcement efforts have been unnecessarily violent and designed to intimidate dissenters, not protect public health.

During the Covid-19 crisis human rights monitors say, there has been an escalation of abuse in Zimbabwe.

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The Covid-19 crisis comes as Zimbabwe already faces a host of other economic and social problems, including unemployment, steep increases in the cost of basic commodities, and fuel shortages and fuel price spikes—not unlike the fuel hikes that triggered mass protests and the shooting of demonstrators by soldiers last year.

Critics say the human rights abuses that have occurred during the Covid-19 lockdown may be an attempt by the ruling party to clamp down on dissent that could lead to a repeat of last year’s countrywide protests. Human rights activists and faith-based agencies say that Zimbabwe’s weak political and civil institutions have not been able to check the state’s excesses.

“Human rights thinking has no tradition in Zimbabwe,” said Oskar Wermter, a German Jesuit priest who has lived in Zimbabwe for more than 40 years.

“The black majority which came to power in 1980 has not learned much about human rights. A place like Silveira House”—the social development center of the Jesuits in Harare, Zimbabwe’s capital city—“taught Catholic Social Doctrine, but this did not have much impact on the country as a whole,” Father Wermter said.

Violations of lockdown restrictions or resistors to the compulsory wearing of face masks have been met with police and military brutality, prompting criticism from the United States, the European Union and local human rights lawyers.

In a statement released on May 20, the Law Society of Zimbabwe raised concerns about what they called a disturbing increase in abuses, calling on the “state to discharge its constitutional duties and credibly investigate and prosecute all cases of violence.”

Human rights defenders say that it has become “life threatening” to be an activist in Zimbabwe.

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The statement came days after the police said members of the force accused of brutally assaulting civilians would be subjected to internal police disciplinary processes. That meant security officers charged with offenses would not be appearing before a court of law.

“These [violations] constitute a reversal of our aspirations of a democratic country that respects the constitution and rule of law,” the Law Society said.

Even as complaints of police brutality grew, the country’s justice minister, Ziyambi Ziyambi, appeared to justify such human rights abuses when he told Parliament on May 21 that the civilians and legislators who had suffered assaults deserved that treatment because they had broken lockdown violations.

“It is a fact that the said individuals broke the law in that we have lockdown regulations that prohibit demonstrations,” Mr. Ziyambi told local media. “So these individuals are wanted by the police so that they can be interviewed on why they broke the law.

“The same individuals are not cooperating with the police, but seem to be very happy to be at the hospital,” said the justice minister, referring to victims who spoke with media from their hospital beds where they were being treated after an alleged kidnapping, assault and sexual assault at the hands of people suspected to be state security agents.

The police claimed that such reports of abduction and assault have been staged to paint a bad image of Zimbabwe’s poor human rights record before the international community. But in a statement released on May 22, the Zimbabwe Heads of Christian Denominations, an ecumenical group that includes the Zimbabwe Council of Churches, the Zimbabwe Catholic Bishops Conference and the Evangelical Fellowship of Zimbabwe, lamented what it saw as growing impunity by the state.

Justice minister, Ziyambi Ziyambi, appeared to justify human rights abuses, telling Parliament that the civilians and legislators who suffered assaults deserved that treatment because they had broken Covid-19 lockdown violations.

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“It is deeply disturbing that the country has so many cases of abductions and torture in the last few months, most of which have not been conclusively investigated,” the church leaders said.

“What is further disturbing are the insinuations by some state agents that all these abductions are either stage managed or carried out by an unrecognizable third force without substantiating such claims with credible and irrefutable evidence.”

Mugabe, noted both for his academic background and for fiery rhetoric that at times led to violent consequences, once joked that he and his ruling party had “degrees in violence.” That legacy appears to have become entrenched in Zimbabwe’s political culture even after his death, observers say.

“Robert Mugabe, though a Catholic and quite familiar with Silveira House and the Jesuits there, did not respect Catholic Social Teaching,” said Father Wermter. “His was a Gospel of Power. The consideration of his and his party’s political power overruled all moral and spiritual considerations.

“Mugabe used to say that his government was in power because it had won the liberation war, not because they had been voted democratically into power,” Father Wermter added. “For a government with such a tradition—Mnangagwa is no different in this respect from his predecessor Robert Mugabe—giving up violence as a political tool is difficult,” he said.

Dewa Mavhinga, the director of Human Rights Watch for southern Africa, agreed.

“The same system and governing party Zanu PF that presided over abuses with impunity since 1980 remain in charge today under President Mnangagwa,” Mr. Mavhinga said. “The removal of Robert Mugabe did not change much because it is the same system that remains in charge and committing abuses.

“Zimbabwe authorities must allow independent investigations into abuses and punish perpetrators of abuses. The government spends huge amounts paying P.R. companies in Washington, D.C., in the hope that those companies will help image issues,” he said, “but the truth is simply that no one in the international community will respect a country that allows abductions, torture and rampant rape of women.”

As Zimbabwe’s lawyers noted in their statement, Mr. Mnangagwa’s current administration has not shown an inclination to shift from the reliance on human rights abuses that partly defined his predecessor’s 37 years of uninterrupted rule.

“The Society is concerned that allegations of arbitrary use of violence and torture by security forces are becoming commonplace in our country,” the lawyers said. “This poses a grave threat to our constitutional democracy.” The association’s own members have not been spared assaults at the hands of security forces.

Human rights defenders say that it has become “life threatening” to be an activist in the country.

“The biggest challenge for human rights defenders in Zimbabwe is the operating space,” said Effie Ncube, the director of the Matabeleland Constitutional Reform Agenda. “There are still very limited spaces where activists can operate without fear of losing their lives.”

“There are, however, ways to hold the state accountable,” he said. “One…is civic education and exposure by the media while the courts, despite their known flaws, must also be utilized to expose the state’s excesses,” Mr. Ncube said. Activists in Zimbabwe complain that local courts have been slow in hearing cases against the state.

So far there appears to be little to provide comfort to violence- and poverty-weary Zimbabweans as they wait for elections in 2023, a national vote that has in the past been marred by violence and allegations of electoral theft. There are fears the current spate of human rights violations could be a harbinger of worse things to come.

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Turns Out You Can Still Be Fired For Racist Facebook Posts, Even If You Delete Them!

Are you a public employee thinking of taking to social media to dogwhistle a little tune about the protestors flooding the streets to protest police violence? Maybe . . . DON’T.

Florida lawyer Amy Bloom, an eight-year veteran of the Broward State Attorney’s Office, found herself out of a job yesterday after a Facebook post in which she called protestors “obnoxious” and likened them to zoo animals.

When will people learn that their criminal acts and obnoxious protesting actually gets you nowhere. Act civilized and maybe things will change. I’ve never seen such animals except at the zoo. That goes for every single race and group of people out there. I’d rather be a golden retriever than a fellow human right now. Shameful.

Whoopsie! Realizing her mistake, Bloom quickly deleted the post, but not before it had been screenshotted for posterity and had escaped into the wild. Which is kind of how social media works.

Realizing her mistake, Bloom hastened to tap out a new post explaining that she’s not racist against anyone (except punctuation), and that she deeply respects protestors who are exercising their First Amendment rights, despite calling them obnoxious and uncivilized just seconds earlier.

I made a post and realized that it could be misinterpreted so I deleted it within seconds. I believe in justice for all and that ALL lives matter. I don’t look at anybody by their color shape or size Everyone is a person with equal rights and THAT is why I became a prosecutor to protect those rights and make sure that people don’t take advantage of anyone based on race or background and that goes for police and other members of law-enforcement as well. My post specifically referenced the people who took advantage of the opportunity to protest. I respect the people who have a mission and wanted to accomplish it. It is hard to respect those who are taking it away with violence and destruction.

As reported by the Florida Sun Sentinel, the Broward State Attorney’s Office also “made a post” yesterday, releasing a statement announcing Bloom’s immediate termination because “The views expressed in that posting are entirely inconsistent with the ideals and principles of the Broward State Attorney’s Office and the duties and responsibilities of an assistant state attorney.”

In fact, Broward law enforcement’s ranks have been thinned substantially this week with two sheriff’s deputies placed on administrative duty pending internal investigations after incendiary social media posts of their own.

WSVN, Miami’s Fox affiliate, reports that Deputy Michael Ruback was reassigned after posting of George Floyd, “He wasn’t killed. He’s talking, which means he’s breathing. He died because of DRUGS.” Which is perhaps not entirely consonant with best policing practices, or the report of the independent coroner who examined Floyd’s body.

While Deputy Ronald Thurston was disciplined after a post decrying the lack of diversity in the Broward Sheriff’s Office.

Everyone can talk but no 1 steps up 2 da plate 4 action. RIGHT NOW THE BROWARD SHERIFF’S OFFICE Does not have 1 Black Sergeant that’s over the Crime Suppression Team. 1 Black Sergeant in Criminal Investigation/ District Level. 3 Black Sergeants Countywide that work Criminal Investigation/Downtown. NO BLACKS IN HOMICIDE. 3 BLACK CRIME SUPPRESSION DETECTIVES IN THE ENTIRE COUNTY. 1 BLACK GANG DETECTIVE, 1 BLACK IN MONEY LAUNDERING, 1 BLACK IN MAJOR NARCOTICS, 1 BLACK K9 DEPUTY… The list goes on and on … VOTE OR DIE.

Pastor Allen Jackson maintains that the disciplinary action against Thurston is simply retaliation for his support of the losing candidate in the last sheriff’s election, and that “Because [Sheriff Gregory Tony] didn’t want to just target Deputy Thurston, he lumped this other guy in there to validate what he was doing to Deputy Thurston.” A rally is planned for Thurston’s reinstatement on Thursday.

Florida lawyers will no doubt have a field day here. But the entire episode makes on thing perfectly clear: People over 35 are bad at social media, and we are the last people on earth who should be lecturing our kids about appropriate online behavior. Want to learn how to post to Facebook without getting fired? Call 1-800-ASK-A-MILLENNIAL. Operators are standing by now to help you avoid tanking your career. Call now!

Prosecutor fired over Facebook post calling demonstrators ‘animals’ [Florida Sun Sentinel]
2 BSO deputies reassigned, 1 prosecutor fired following controversial social media posts [WSVN]


Elizabeth Dye (@5DollarFeminist) lives in Baltimore where she writes about law and politics.

Federal Judge Dissents From… Her Own Opinion

(Image via Getty)

Judge Edith Jones of the Fifth Circuit appears to be having a bit of an identity crisis.

In Stratta & Fazzino v. Roe et al., Judge Jones wrote for the majority in holding that the district court erred in dismissing the claims of landowners against a government body for allegedly stealing groundwater. One claim that the Judge Jones-authored opinion blessed as correctly dismissed was a First Amendment claim raised by one of the landowners, who is also a member of the Board of the defendant agency, over not being allowed to raise his complaints at a public meeting. And Judge Jones does not agree at all with what Judge Jones wrote:

I respectfully dissent from the majority’s conclusion that Stratta was not permitted under § 551.042(a)-(b) to inquire about a new subject for the limited purpose of placing that subject on the agenda for a subsequent meeting.

Now… obviously what went down here is that something changed between the beginning of the drafting process and the final publication of the opinion. But that’s usually when courts issue a per curiam opinion and just call it a day. What’s the value in keeping your name on an opinion that you’re going to dissent from anyway?

But the important thing is that the federal judiciary is keeping the law as straightforward and easy to decipher as possible, am I right?

(Full opinion on the next page.)


HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.

Federal Regulators Furnish Guidance on CRA Consideration for Activities in Response to COVID-19 [Sponsored]

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