Mphoko's son moves to block Choppies sale to Raji Modi

Siqokoqela Mphoko, son of the late former Vice President Phelekezela Mphoko, has filed an urgent chamber application seeking to prevent the sale of Choppies Zimbabwe to Bulawayo businessman and Deputy Minister of Industry and Commerce, Raji Modi. The legal battle over the ownership and valuation of Choppies Zimbabwe has taken a new turn as Mphoko fights to secure what he claims is his rightful stake in the supermarket chain.

The application, submitted on February 14, 2025, names several respondents, including Nanavac Investments (Pvt) Ltd, Choppies Enterprises Limited, Choppies Distribution Centre (Proprietary), Pintrail Trading (Pvt) Ltd, and the Reserve Bank of Zimbabwe (RBZ). Choppies Enterprises, a Botswana-based multinational supermarket retailer, owns Choppies Zimbabwe, while Pintrail, a company linked to Modi, is involved in the acquisition process.

At the heart of the dispute is the Mphokos' 2020 High Court claim, in which they sought US$22.6 million as the fair value of their shares in Nanavac, the holding company of Choppies Zimbabwe. The Mphokos were initially 51% shareholders in Nanavac, while Choppies Enterprises held the remaining 49%. Siqokoqela is seeking an anti-dissipation interdict, a legal measure that prevents a party from disposing of assets that could be subject to a pending court ruling. He argues that selling Choppies at this stage would undermine the Mphokos' claim and render it impossible for them to recover what they believe they are owed.

Siqokoqela also alleges that his exit from Nanavac was not voluntary, claiming that he signed a deed of settlement under duress. He says he was pressured into the agreement after being arrested on fraud charges involving US$80,000, while his wife, Nomagugu, was also accused of forcing Choppies managers in Bulawayo to unlawfully dispense over US$30,000 in cash. As part of the settlement, the charges against him were withdrawn, but he now argues that the circumstances of his exit were unfair and should be reviewed by the court.

There is ongoing confusion regarding whether Modi and Pintrail have already completed the purchase of Choppies Zimbabwe. Some sources claim that payment has been made, while others insist that no final transaction has taken place. The primary focus, according to various reports, has been on preserving jobs at the supermarket chain rather than finalizing the sale.

In his court application, Siqokoqela questions the legitimacy of the process, particularly the announcement by Motswedi Securities in November 2024 that Choppies Enterprises was exiting the Zimbabwean market and seeking Botswana Stock Exchange approval for the sale. He argues that the issuance of a creditor circular before regulatory approval was sought suggests that the sale was already being treated as a done deal, raising concerns over compliance and transparency.

With the legal battle intensifying, the future of Choppies Zimbabwe remains uncertain. If the court grants the interdict, it could delay or completely halt the sale to Modi. On the other hand, if the application is dismissed, Choppies Enterprises could proceed with its exit strategy, potentially leaving the Mphokos without the compensation they claim is owed to them. The case adds another layer of complexity to an already contentious business dispute, with significant implications for all parties involved.