News / National
CBZ garnishes all Dembare's financial sources?
18 Feb 2019 at 06:56hrs | Views
DYNAMOS' failure to settle a $247 505 debt owed to CBZ Bank, which has seen their accounts at Stewart Bank and BanABC being garnished, could destroy the Glamour Boys' relationship with their principal sponsors NetOne and paralyse operations at the troubled giants.
CBZ Bank petitioned the High Court recently seeking an order to garnish all the club's financial sources after the Glamour Boys failed, for more than seven years, to settle the debt. The bank has been targeted the revenue streams which oil the beleaguered Glamour Boys, including their sponsorship deal with NetOne.
"This is an application for an order that any money at present due or becoming due in the future to the judgment debtor (Dynamos) by the garnishee namely Steward Bank (Pvt) Ltd, African Banking Corporation of Zimbabwe Limited trading as BancABC, NetOne (Pvt) Ltd, and Nyaradzo Life Assurance Company or any other third party within the jurisdiction of this honourable court, be attached in terms of Order 42, Rule 337 of the High Court, 1971," CBZ Bank said in their affidavit.
"The judgment debtor has constantly refused to comply with the court order to repay the debt owed. Enforcing the order has been made difficult, partly due to the sheriff's inability to attach gate-takings, which had already been targeted by a number of stakeholders.
"Property believed to be owned by the defendant has been claimed by interpleaders on several occasions, thus leaving the sheriff at a disadvantage when it came to executing the court order."
In January 2012, Dynamos and their leaders were ordered by Justice Nicholas Mathonsi to pay $247 505,75, including a penalty interest of 36% per annum calculated daily from March 27, 2012. The then Dynamos president Kenny Mubaiwa, John Kanokanga, Casper Muzenda, Michael George Ignatious and four others were named as part of the individuals who were exposed to the court application by CBZ Bank.
"The applicant (CBZ) reasonably believes that the judgment debtor (Dynamos) is obligated to receive funds from the third and fourth garnishees (NetOne and Nyaradzo) in order to fulfil their contracted obligations, thus the judgment creditor seeks an order to attach those fees and all other forms of revenue received by the garnishees on behalf of the judgment debtor until the debt has been repaid in terms and in order 42, Rule 377 of the High Court rules."
The order was granted by High Court judge Justice Owen Tagu in default.
"Any amount at present due or becoming due to the judgment debtor (Dynamos) by the garnishee be attached and be directly paid into CBZ Bank Limited, account number 02122982030018, Selous Branch, until the court order granted by this court in case number 5511/12 has been satisfied in full," read the judgment.
Now, this case appears to have paralysed the relationship between Dynamos and NetOne who have been paying the salaries of the Glamour Boys players and technical staff. Last week, NetOne paid the January salaries for the Caps United and Highlanders players and technical staff but nothing was deposited into the Dynamos coffers because of concerns the funds could end up being channeled towards the dissolution of CBZ Bank debt.
"Caps United and Highlanders received their January dues from NetOne last week and Dynamos didn't get anything and that should be worrying,'' sources said.
"There are complications in the Dynamos case because of that High Court case and concerns for the sponsors that the money they pump in could end up not in the hands of the players and the coaches, as per their mission to strengthen the teams they sponsor, but being used to settle the debt.
"It's a tricky situation and Dynamos, on their own, without the funding from their main sponsors, could find it very difficult to complete this season.
"Remember, the club has been recruiting some foreigners and there is also that hanging case in which they were sanctioned by Fifa for failing to pay Epoupa from Cameroon. "They have already lost a number of key players who were frustrated by the team's failure to take care of their welfare.''
Sources said PSL chairman, Farai Jere, was trying to find a resolution to the Dynamos dilemma.
CBZ Bank petitioned the High Court recently seeking an order to garnish all the club's financial sources after the Glamour Boys failed, for more than seven years, to settle the debt. The bank has been targeted the revenue streams which oil the beleaguered Glamour Boys, including their sponsorship deal with NetOne.
"This is an application for an order that any money at present due or becoming due in the future to the judgment debtor (Dynamos) by the garnishee namely Steward Bank (Pvt) Ltd, African Banking Corporation of Zimbabwe Limited trading as BancABC, NetOne (Pvt) Ltd, and Nyaradzo Life Assurance Company or any other third party within the jurisdiction of this honourable court, be attached in terms of Order 42, Rule 337 of the High Court, 1971," CBZ Bank said in their affidavit.
"The judgment debtor has constantly refused to comply with the court order to repay the debt owed. Enforcing the order has been made difficult, partly due to the sheriff's inability to attach gate-takings, which had already been targeted by a number of stakeholders.
"Property believed to be owned by the defendant has been claimed by interpleaders on several occasions, thus leaving the sheriff at a disadvantage when it came to executing the court order."
In January 2012, Dynamos and their leaders were ordered by Justice Nicholas Mathonsi to pay $247 505,75, including a penalty interest of 36% per annum calculated daily from March 27, 2012. The then Dynamos president Kenny Mubaiwa, John Kanokanga, Casper Muzenda, Michael George Ignatious and four others were named as part of the individuals who were exposed to the court application by CBZ Bank.
"The applicant (CBZ) reasonably believes that the judgment debtor (Dynamos) is obligated to receive funds from the third and fourth garnishees (NetOne and Nyaradzo) in order to fulfil their contracted obligations, thus the judgment creditor seeks an order to attach those fees and all other forms of revenue received by the garnishees on behalf of the judgment debtor until the debt has been repaid in terms and in order 42, Rule 377 of the High Court rules."
The order was granted by High Court judge Justice Owen Tagu in default.
"Any amount at present due or becoming due to the judgment debtor (Dynamos) by the garnishee be attached and be directly paid into CBZ Bank Limited, account number 02122982030018, Selous Branch, until the court order granted by this court in case number 5511/12 has been satisfied in full," read the judgment.
Now, this case appears to have paralysed the relationship between Dynamos and NetOne who have been paying the salaries of the Glamour Boys players and technical staff. Last week, NetOne paid the January salaries for the Caps United and Highlanders players and technical staff but nothing was deposited into the Dynamos coffers because of concerns the funds could end up being channeled towards the dissolution of CBZ Bank debt.
"Caps United and Highlanders received their January dues from NetOne last week and Dynamos didn't get anything and that should be worrying,'' sources said.
"There are complications in the Dynamos case because of that High Court case and concerns for the sponsors that the money they pump in could end up not in the hands of the players and the coaches, as per their mission to strengthen the teams they sponsor, but being used to settle the debt.
"It's a tricky situation and Dynamos, on their own, without the funding from their main sponsors, could find it very difficult to complete this season.
"Remember, the club has been recruiting some foreigners and there is also that hanging case in which they were sanctioned by Fifa for failing to pay Epoupa from Cameroon. "They have already lost a number of key players who were frustrated by the team's failure to take care of their welfare.''
Sources said PSL chairman, Farai Jere, was trying to find a resolution to the Dynamos dilemma.
Source - chronicle
