News / National
Tendai Biti grabs MDC-T assets
07 May 2014 at 08:07hrs | Views
MDC-T leader Morgan Tsvangirai and his secretary general, Tendai Biti's factions are headed for a nasty legal battle over the control of the party's assets.
The assets, which include offices and vehicles, are believed to be registered in the name of a company in which Biti is a director, amid indications that they were registered under the latter's company.
It is understood that about 50 MDC-T vehicles and more than 10 offices countrywide were registered under Laphonic Enterprises, whose directors are Biti, Elton Mangoma and coordinator for policy and research, Fortune Gwaze.
The trio belongs to one faction and their faction controls party accounts. A source in the one of the factions claimed the three were also shareholders in the company that the MDC-T formed to act as conduit to receive money from sponsors and to conceal some of its assets.
Both camps are already embroiled in a nasty confrontation with Biti's camp suspending Tsvangirai and his camp with the latter turning the tables and expelling the former finance minister and his group.
Consequently, the two factions are fighting over the control of party assets across the country with some of them having been arrested on charges of unlawful entry for allegedly breaking into the party's offices and stealing various items.
Legal practitioners say only the courts can determine who should be in custody of the assets.
"Biti's camp have all the party assets except five vehicles that are parked at Tsvangirai's house," said a source. "All the assets are registered under Laphonic Enterprises except Harvest House (party headquarters) that is registered under Harvest House Pvt Ltd that is owned by Ian Makone and Reverend Tim Neil. That's the only building that Tsvangirai's camp has control over.
"Biti's camp has all the party offices across the country because we've offices in each of the party's 12 provinces as well as about four vehicles in each province because they were all registered under Laphonic Enterprises. MDC-Renewal Team will be reclaiming some of the properties that are still under Tsvangirai very soon."
Dr Tapiwa Mashakada, who is the acting secretary-general in Tsvangirai's camp, acknowledged that both party movable and immovable assets were registered under Laphonic Enterprises that Biti and company control.
"Those are MDC assets and those who opened the company that you're talking about were acting to further the interests of the MDC," he said.
"We don't foresee any legal battles and if they want to claim that they own the property, then that'll be fraud. Everyone knows that those are party assets and if anyone wants to claim that they own them then that will be fraud and will be treated as such."
But the spokesperson for Biti's faction, Jacob Mafume, said Tsvangirai and his lieutenants had no right to take custody of any of the party's assets because he was suspended.
"They're suspended, so they shouldn't worry about the assets. First they must fight their suspension and if they're successful, then they will come back and find the assets on site.
"They're illegally holding onto some of our properties which is a futile exercise. If they've a problem they can seek redress wherever they want. They've been duly suspended so they've nothing to do with the party assets.
"In fact to us, the greatest assets of the party are the people and we're more concerned with their welfare."
He could neither confirm nor deny if the trio were shareholders in Laphonic Enterprises adding that the assets were held in terms of the MDC constitution.
Legal experts said either of the two formations would have to approach the courts to claim ownership of the properties.
University of Zimbabwe law lecturer, Professor Lovemore Madhuku, said the courts were the only institution that could resolve the dispute.
"Each one of them remains in possession of assets they have now. But if anyone wants to take assets that the other party has, then they can only do so if they go through the courts," Madhuku said.
"There's no way they can escape the courts to determine who should have the assets. The Tsvangirai camp will have to prove in court that when those people registered those assets under that company they were doing so representing the MDC because the challenge is that Biti and his team may deny that they were representing anyone. Then that will be the end of the matter."
Lawyer Jonathan Samkange said since there was a dispute over both camps' status in the party, the wrangle could only be resolved in court.
"The only way to avoid going to court is by approaching the Speaker of the National Assembly through the leader of the Opposition in Parliament, Thokozani Khupe, and say these people are not in our party anymore and prove that indeed members of the national council who attended Biti's meeting didn't meet the quorum while theirs did," Samkange said.
"In that case, the Speaker will then say in light of this, I recognise the other faction. With that, the recognised faction will then take back assets from the other."
Samkange said in that scenario, the aggrieved party would then approach the courts.
He said Tsvangirai's faction could still claim the assets because Biti and his co-directors were acting on behalf of the party.
Terrence Hussein of Hussein, Ranchod and Company law firm, said those who hold Laphonic Enterprises share certificates between the two factions could claim ownership of the properties.
"Company assets belong to the company. Those who own the shares nominate directors. The question now is who holds the shares between the two camps? If Biti's camp holds the shares, then Tsvangirai's camp is in trouble and if Tsvangirai's camp holds them then Biti's camp is in trouble," he said.
"In the meantime, until the next extra-ordinary meeting or annual general meeting, directors of the company will have control of the assets," said Hussein.
National Assembly Speaker, Jacob Mudenda, yesterday told Star FM radio that he received letters from both Tsvangirai's faction and that of Biti. He said he was studying both letters before making a determination on the matter.
The assets, which include offices and vehicles, are believed to be registered in the name of a company in which Biti is a director, amid indications that they were registered under the latter's company.
It is understood that about 50 MDC-T vehicles and more than 10 offices countrywide were registered under Laphonic Enterprises, whose directors are Biti, Elton Mangoma and coordinator for policy and research, Fortune Gwaze.
The trio belongs to one faction and their faction controls party accounts. A source in the one of the factions claimed the three were also shareholders in the company that the MDC-T formed to act as conduit to receive money from sponsors and to conceal some of its assets.
Both camps are already embroiled in a nasty confrontation with Biti's camp suspending Tsvangirai and his camp with the latter turning the tables and expelling the former finance minister and his group.
Consequently, the two factions are fighting over the control of party assets across the country with some of them having been arrested on charges of unlawful entry for allegedly breaking into the party's offices and stealing various items.
Legal practitioners say only the courts can determine who should be in custody of the assets.
"Biti's camp have all the party assets except five vehicles that are parked at Tsvangirai's house," said a source. "All the assets are registered under Laphonic Enterprises except Harvest House (party headquarters) that is registered under Harvest House Pvt Ltd that is owned by Ian Makone and Reverend Tim Neil. That's the only building that Tsvangirai's camp has control over.
"Biti's camp has all the party offices across the country because we've offices in each of the party's 12 provinces as well as about four vehicles in each province because they were all registered under Laphonic Enterprises. MDC-Renewal Team will be reclaiming some of the properties that are still under Tsvangirai very soon."
Dr Tapiwa Mashakada, who is the acting secretary-general in Tsvangirai's camp, acknowledged that both party movable and immovable assets were registered under Laphonic Enterprises that Biti and company control.
"Those are MDC assets and those who opened the company that you're talking about were acting to further the interests of the MDC," he said.
"We don't foresee any legal battles and if they want to claim that they own the property, then that'll be fraud. Everyone knows that those are party assets and if anyone wants to claim that they own them then that will be fraud and will be treated as such."
But the spokesperson for Biti's faction, Jacob Mafume, said Tsvangirai and his lieutenants had no right to take custody of any of the party's assets because he was suspended.
"They're suspended, so they shouldn't worry about the assets. First they must fight their suspension and if they're successful, then they will come back and find the assets on site.
"They're illegally holding onto some of our properties which is a futile exercise. If they've a problem they can seek redress wherever they want. They've been duly suspended so they've nothing to do with the party assets.
"In fact to us, the greatest assets of the party are the people and we're more concerned with their welfare."
He could neither confirm nor deny if the trio were shareholders in Laphonic Enterprises adding that the assets were held in terms of the MDC constitution.
Legal experts said either of the two formations would have to approach the courts to claim ownership of the properties.
University of Zimbabwe law lecturer, Professor Lovemore Madhuku, said the courts were the only institution that could resolve the dispute.
"Each one of them remains in possession of assets they have now. But if anyone wants to take assets that the other party has, then they can only do so if they go through the courts," Madhuku said.
"There's no way they can escape the courts to determine who should have the assets. The Tsvangirai camp will have to prove in court that when those people registered those assets under that company they were doing so representing the MDC because the challenge is that Biti and his team may deny that they were representing anyone. Then that will be the end of the matter."
Lawyer Jonathan Samkange said since there was a dispute over both camps' status in the party, the wrangle could only be resolved in court.
"The only way to avoid going to court is by approaching the Speaker of the National Assembly through the leader of the Opposition in Parliament, Thokozani Khupe, and say these people are not in our party anymore and prove that indeed members of the national council who attended Biti's meeting didn't meet the quorum while theirs did," Samkange said.
"In that case, the Speaker will then say in light of this, I recognise the other faction. With that, the recognised faction will then take back assets from the other."
Samkange said in that scenario, the aggrieved party would then approach the courts.
He said Tsvangirai's faction could still claim the assets because Biti and his co-directors were acting on behalf of the party.
Terrence Hussein of Hussein, Ranchod and Company law firm, said those who hold Laphonic Enterprises share certificates between the two factions could claim ownership of the properties.
"Company assets belong to the company. Those who own the shares nominate directors. The question now is who holds the shares between the two camps? If Biti's camp holds the shares, then Tsvangirai's camp is in trouble and if Tsvangirai's camp holds them then Biti's camp is in trouble," he said.
"In the meantime, until the next extra-ordinary meeting or annual general meeting, directors of the company will have control of the assets," said Hussein.
National Assembly Speaker, Jacob Mudenda, yesterday told Star FM radio that he received letters from both Tsvangirai's faction and that of Biti. He said he was studying both letters before making a determination on the matter.
Source - chronicle
