ENG Liquidator DID NOT have permission to sale Century or CFX Bank: Muponda

Mr. Gilbert  Muponda the chairman of ENG Capital Group has denied the claims by both Interfin Banking Corporation officials and ENG Liquidator that Mr Saruchera had permission and  authority to sell our  309,000,000 shares. That claim is both false and malicious. Mr Saruchera DID NOT have permission to sell the shares as Mr. Muponda alleges that they were supposed to be valued first then transferred to Creditors who had elected to receive shares instead of cash payments.

Mr. Muponda showed us three documents which show that the ENG Liquidator Mr Reggie Saruchera did not have permission or Authority to sell the Century Bank Holdings Limited shares which he sold. The documents clearly show he was supposed to get direction and advice from Creditors and Contributories on how to proceed. And specifically the shares were not supposed to be sold but rather exchanged in-lieu of cash payments to creditors who had elected to receive shares instead of cash payments.

Even in his own letter dated 13 May 2004 Mr Saruchera admits the shares were supposed to be valued first and a method be worked out to transfer the shares to the creditors and not to sell the shares. However on 12 May 2004 Mr Saruchera had already sold the shares even though he was still admitting the share valuations and mechanism of transfer were still to be worked out.

Mr. Muponda says it is clear Interfin were a beneficiary of an irregular, illegal, unauthorised and corrupt transaction. They were fully aware of this anormally since his lawyers Gutu and Chikowero wrote to them directly before their finalization of the CFX deal. Interfin are the main beneficiaries of an irregular, illegal, unauthorised and corrupt disposal of shares resulting in unjust enrichment and as such he is asking for compensation amounting to $ 15.4 million being 309 000 000 by $ 0.05.Interfin assumed all assets and liabilities of CFX Bank and Century Bank. "In addition Interfin were fully aware of our equity claim against CFX and Century Bank since we wrote to their Mr Raymond Njanike before they completed the transaction and their main response was that I was specified therefore had no rights. We even wrote to the Minister of Finance to place this matter on record" said Mr. Muponda.

Below are some of the statements extracted from Mr. Muponda's claims.
a ) Mr Saruchera was appointed by consent on the proviso he would work closely with both Creditors and Contributories thats why all notices are directed to Creditors and Contributories. This is confirmed by The notice of second meeting of Creditors point number 3 which says; To Provide direction and guidance to the Liquidator on any issues related to the Liquidation process the meeting was on 24 April 2004 well after the 28 February Meeting. This is provided in an attachment we received from Mr. Muponda.

b) Liquidator Report dated 21 April 2004 page 11 section 12 confirms the liquidator did not have permission to sell the shares. It's clearly recorded that there was an election by Creditors to be paid by way of shares.

c - Point 12.2 of the same report clearly states selling shares wasn't in the best interest of Liquidation as the market was depressed

d - Point 12.3 further confirms 29 creditors had agreed to that and there was no need to agree on valuations and transfer manor.

e- The letter by Liquidator on 13 May 2004 confirms he was still doing housekeeping issues such as verifying claims and assets such that he could not have started selling the shares. Of specific importance point number 5 actually confirms that negotiations are underway to place value on shares to be taken over in leu of dividends.

So as on 13 May 2004 negotiations where going on to value the shares. However whilst the valuations were still going on to value the shares as at 13 May 2004, the previous day 12 May 2004 the Liquidator had already sold the 309,000,000 shares. How could he have sold the shares before a valuation had been agreed with creditors, contributories and in any case the shares were supposed to be exchanged instead of being sold as explained above.

When Mr Saruchera sold these shares which he didn't have permission to sell as detailed above we then proceeded with legal action in form of HC-6244-04 seeking to block the sale and transfer of the 309,000,000 Century Shares and his removal from office. Instead of responding legally to our legal challenge Mr Saruchera sought political intervention by asking the Mr of Justice to specify my lawyer Mr Ziweni, My co-director Nyasha and Myself. This was to hide his tracks of illegal, irregular, unauthorised and corrupt sale of shares plus to hold on to the ENG estate which he was now looting and plundering.

High Court case is clear on the basis of the dispute and Interfin ought to have known this dispute had they done a thorough due diligence especially after getting a written cautionary plus a copy of the court case documentation.

Mr. Muponda supplied us with the following documents;
1 -  Mr. Saruchera's letter dated 13 May 2004
2 - Notice of Creditor and Contributory for second meeting
3 - Page 11 of Liquidator Report dated 21 April 2004

Muponda alleges that all these documents show Mr Saruchera had no permission to sell the shares as is being claimed by Interfin Banking Corporation. Such claims are meant to cover up an unjust self enrichment scheme and corrupt transaction at the same time smearing my name and tarnish my reputation as they seek to make me appear as if I am making up things.