News / Africa
Mutumwa Mawere wins legal battle against SA's IDC
28 Sep 2015 at 07:30hrs | Views
A DISPUTE with a company owned by Zimbabwean-born businessman Mutumwa Mawere resulted in the Industrial Development Corporation (IDC) having a bank account frozen last week after it lost a five-year legal battle.
Earlier this month the IDC lost an appeal before the Supreme Court of Appeal relating to a High Court order.
That led to a writ of execution being granted last Tuesday and an order for the freezing of an Absa bank account in its name.
According to BDLive, the conflict with Mr Mawere's Africa Resources Limited arose in 2010 when its subsidiary, Salister Diesels, was a debtor of the corporation for R5.8m.
According to Mr Mawere's arguments, Salister needed a capital injection but its agreement with the corporation precluded it from accessing third party financing. Mr Mawere approached the corporation to purchase Salister's outstanding loans.
The corporation said Salister owed it R5.8m, and held various securities against Salister's debt.
According to court documents, the corporation after more than two months said it was reluctant to relinquish its rights to securities it held in respect of Salister's debt to African Resources.
Mr Mawere said in court papers that the IDC withheld funds from him without a court order.
He further claimed that the corporation's officials knew that withholding the funds would have consequences for Salister.
Salister was then liquidated in February 2011.
On Sunday, the corporation confirmed an account was frozen but said it had settled with Mr Mawere.
Mandla Mpangase, the corporation's public relations manager, said: "Yes, the court order does exist and we have complied and paid."
Mr Mawere's court documents allege there was a conspiracy involving the corporation's officials and others to withhold funds and frustrate him.
Earlier this month the IDC lost an appeal before the Supreme Court of Appeal relating to a High Court order.
That led to a writ of execution being granted last Tuesday and an order for the freezing of an Absa bank account in its name.
According to BDLive, the conflict with Mr Mawere's Africa Resources Limited arose in 2010 when its subsidiary, Salister Diesels, was a debtor of the corporation for R5.8m.
According to Mr Mawere's arguments, Salister needed a capital injection but its agreement with the corporation precluded it from accessing third party financing. Mr Mawere approached the corporation to purchase Salister's outstanding loans.
The corporation said Salister owed it R5.8m, and held various securities against Salister's debt.
Mr Mawere said in court papers that the IDC withheld funds from him without a court order.
He further claimed that the corporation's officials knew that withholding the funds would have consequences for Salister.
Salister was then liquidated in February 2011.
On Sunday, the corporation confirmed an account was frozen but said it had settled with Mr Mawere.
Mandla Mpangase, the corporation's public relations manager, said: "Yes, the court order does exist and we have complied and paid."
Mr Mawere's court documents allege there was a conspiracy involving the corporation's officials and others to withhold funds and frustrate him.
Source - BDlive‎
