Business / Companies
Obert Mpofu's Allied Bank feels the heat
12 Jul 2017 at 12:52hrs | Views
Liquidator of the collapsed Allied Bank, Cecil Madondo, who is being sued by one of the creditors seeking to recover money locked in the financial institution, has said the Deposit Protection Corporation (DPC) must provide answers to the bank's creditors.
Zimbabwe Amalgamated Housing Association (Zaha) is seeking to recover nearly $1,5 million locked up in the financial institution.
Allied Bank, majority owned by a vehicle linked to Economic Planning minister Obert Mpofu, had its licence cancelled by the Reserve Bank of Zimbabwe (RBZ) in January 2015 after it was found to be in an unsafe financial position.
According to the High Court application filed last month, Killer Zivhu - who is Zaha's chairperson - is seeking an order for the removal of Madondo for alleged failure to comply with his statutory duties to repay the locked-up money.
In the application, Zaha cited Madondo, Allied Bank and the Master of High Court as respondents.
Madondo in his notice of opposition claimed that he is not the liquidator.
"In terms of Section 37 (3) of the Deposit Protection Corporation Act (Chapter 24:29), the Deposit Protection Corporation (DPC) as represented by its chief executive officer . . . John Mafungei Chikura, is the liquidator of Allied Bank Limited," Madondo argued.
He said that the relationship between him and the liquidator is that of a principal and agent.
"It therefore, stands to reason that I have been wrongly cited in the current proceedings as I am not the liquidator and I do not have any personal interest in the matter. The party best placed to field any questions and concerns raised by applicant is not before the court.
"Applicant's application cannot stand for want of compliance with rules of this honourable court. Applicant's erroneous pursuit of first respondent has left my name soiled for no sane reason that can come to mind."
Madondo further claimed that the success of the liquidation was dependent upon the recovery of $31 million, and said they were awaiting High Court approval to liquidate assets amounting to $16 million to be recovered from Mpofu's investment vehicle Trebo & Khays (Private) Limited.
In his application, Zivhu had alleged that Madondo was failing in his duties, considering that it is more than two years since his appointment, yet he has done nothing towards making sure that creditors get their money.
Zivhu had accused Madondo of grossly failing to protect the interests of creditors and called on the court to relieve him of his duties.
"It is my humble submission that a person appointed as a liquidator owes some fiduciary duties to the creditors amongst others which is to keep creditors well informed of the steps which he is taking to recover what is owed to them and the duty to comply with provisions of the law regarding the lodging of accounts," Zivhu said.
"I therefore seek a compelling order in terms of Section 280 to lodge his full and final distribution account with the Master of High Court within seven working days from the date that this order is granted," he said, adding that Madondo must surrender the bank's assets, including title deeds, records, bank accounts among other items to the Master of High Court within seven days of the order.
Zimbabwe Amalgamated Housing Association (Zaha) is seeking to recover nearly $1,5 million locked up in the financial institution.
Allied Bank, majority owned by a vehicle linked to Economic Planning minister Obert Mpofu, had its licence cancelled by the Reserve Bank of Zimbabwe (RBZ) in January 2015 after it was found to be in an unsafe financial position.
According to the High Court application filed last month, Killer Zivhu - who is Zaha's chairperson - is seeking an order for the removal of Madondo for alleged failure to comply with his statutory duties to repay the locked-up money.
In the application, Zaha cited Madondo, Allied Bank and the Master of High Court as respondents.
Madondo in his notice of opposition claimed that he is not the liquidator.
"In terms of Section 37 (3) of the Deposit Protection Corporation Act (Chapter 24:29), the Deposit Protection Corporation (DPC) as represented by its chief executive officer . . . John Mafungei Chikura, is the liquidator of Allied Bank Limited," Madondo argued.
"It therefore, stands to reason that I have been wrongly cited in the current proceedings as I am not the liquidator and I do not have any personal interest in the matter. The party best placed to field any questions and concerns raised by applicant is not before the court.
"Applicant's application cannot stand for want of compliance with rules of this honourable court. Applicant's erroneous pursuit of first respondent has left my name soiled for no sane reason that can come to mind."
Madondo further claimed that the success of the liquidation was dependent upon the recovery of $31 million, and said they were awaiting High Court approval to liquidate assets amounting to $16 million to be recovered from Mpofu's investment vehicle Trebo & Khays (Private) Limited.
In his application, Zivhu had alleged that Madondo was failing in his duties, considering that it is more than two years since his appointment, yet he has done nothing towards making sure that creditors get their money.
Zivhu had accused Madondo of grossly failing to protect the interests of creditors and called on the court to relieve him of his duties.
"It is my humble submission that a person appointed as a liquidator owes some fiduciary duties to the creditors amongst others which is to keep creditors well informed of the steps which he is taking to recover what is owed to them and the duty to comply with provisions of the law regarding the lodging of accounts," Zivhu said.
"I therefore seek a compelling order in terms of Section 280 to lodge his full and final distribution account with the Master of High Court within seven working days from the date that this order is granted," he said, adding that Madondo must surrender the bank's assets, including title deeds, records, bank accounts among other items to the Master of High Court within seven days of the order.
Source - dailynews
