News / National
Kudenga, Masunda bid to grab Oliver Chidawu's estate flops
05 Oct 2024 at 12:09hrs | Views
Attempts by chartered accountant Ngoni Kudenga and former Harare Mayor Muchadeyi Masunda to grab late former Harare Metropolitan Affairs and Devolution minister Oliver Chidawu's estate have been stopped by the High Court.
Kudenga was appointed as a solo trustee of Oliver Mandishona Chidawu Trust on March 25 1992.
Because no trust can operate with only one trustee, Oliver Mandishona Chidawu Trust was never operationalised and does not have a share certificate.
It was then after the death of Chidawu on 17 July 2022 that Kudenga appointed Masunda as consultant on September 12, 2022, and later as a trustee together with Francis Dzanya in November of the same year in order to operationalise it and use it as a tool to take over Chidawu's estate.
Kudenga, Masunda and Dzanya, working together with Chidawu's widow, Spiwe, then began acting as shareholders of Broadway, a group of companies owned by the late Zanu PF top official.
Under Broadway, there is Chizororo Eyrecourt, which holds land valued at around US$15 million in Harare South which Kudenga and team had been partitioning and selling claiming to be the owners of the company.
Broadway also owns Heritage Life Limited whose operations have been suspended by the Insurance and Pensions Commission due to the share ownership wrangle between Kudenga and Chidawu's daughter, Ropafadzo Sibusisiwe Chidawu.
But Kudenga and team's honeymoon over Chidawu's estate has been brought to an abrupt halt by the High Court which ruled that they are not shareholders.
The ruling was made after Ropafadzo approached the court challenging their shareholding in her father's sprawling estate under the umbrella name, Gombe Group of Companies, also known as Broadway Investments.
Broadway, represented by Chidawu's daughter, Ropafadzo was the applicant while the Oliver Mandishona Chidawu Trust was the respondent.
Ropafadzo was seeking an order declaring that the Oliver Mandishona Chidawu Trust does not own any shares in Broadway and thus has no right and/or title to claim as regards the exercise of shareholder powers/rights within the applicant.
In a ruling delivered on October 3, High Court judge Justice Joseph Chilimbe concurred with Broadway that Kudenga and Masunda were not shareholders.
"The application succeeds and it is declared that the respondent does not own any shares; neither is it a shareholder of the applicant and has no right and or title to claim as regards the exercise of shareholder power or rights within the applicant," read part of the order.
Justice Chilimbe however said he could not grant the second relief sought to have any act done or performed by the Kudenga and his team whilst purporting to be a shareholder of the Broadway to be declared null and void saying the applicant has not laid before the court the said acts as well as consequences thereof.
In her founding affidavit, Ropafadzo laid several grounds as proof of applicant's present and future rights. revolving Broadway's shares.
"Firstly, the deponent claimed that it was the applicant's right and entitlement to organise its affairs to the expected standard of propriety.
"Secondly, she contended that such a mandate included addressing the present anomaly where the respondent was incorrectly recognised as a shareholder of the company," part of the ruling read.
"Associated with this point was the undesirable state of affairs where the respondent assuming, enjoyed and exercised the rights of a shareholder.
"Whilst these were not particularised, one may presume that they included influencing or guiding the affairs of the applicant company. In addition, of course, to partaking in the fruits of commercial activity."
She said Kudenga was simply appointed as a trustee of Oliver Mandishona Chidawu Trust and was using the defunct transfer deed signed in 1992 but never operationalised to masquerade as a shareholder of Broadway, taking advantage of loopholes in governance in the company.
But Kudenga claimed that on 30 August 1991, "two certificates comprising 100% shareholding in applicant were issued to Mr Chidawu (28,000 shares) and Mrs Spiwe Chidawu (3,200 shares).
These share certificates were, according to Mr Kudenga, cancelled when the two shareholders each transferred their entire shareholding to the Oliver Mandishona Chidawu Trust on 29 April 2003.
Kudenga however failed to produce the share transfer certificates.
Only the share certificate for Chidawu Family Trust, acknowledged by the court as the initial shareholder was located.
Ropafadzo relied on the report by Bamu Attorneys which noted that Share certificate -7 referee to by Kudenga was in the name of Chidawu Family Trust and not Oliver Mandishona Chidawu Trust which Kudenga and the team were using to take control of the late businessman's cast empire.
The report also acknowledged Ropafadzo as a director of Broadway, despite Kudenga claiming she was not.
According to documents, Ropafadzo was appointed group managing director by the former minister on September 9 2020 before he died in 2022.
Kudenga is the managing director of BDO Zimbabwe Chartered Accountants, whose firm has suffered reputational damages after former National Social Security Authority board chair Robin Vela successfully challenged its forensic audit report, with the court ruling that the company was not professional.
First Mutual also challenged the firm's audit report, describing it a shoddy and unprofessional.
In 2021, Kudenga was also removed from the Cold Storage Commission as a corporate rescuer after Nicholas Haverscroft of Boustead Beef, one of the defunct meat processor's creditors and peer-chartered accountancy firms made complaints about audit work carried out by BDO.
Masunda was also in court battling charges of assaulting Ropafadzo on August 4 this year after she visited him at his Milton Park offices to discuss the wrangle over her father's estate.
The former mayor was however discharged on the allegations on Friday.
Kudenga was appointed as a solo trustee of Oliver Mandishona Chidawu Trust on March 25 1992.
Because no trust can operate with only one trustee, Oliver Mandishona Chidawu Trust was never operationalised and does not have a share certificate.
It was then after the death of Chidawu on 17 July 2022 that Kudenga appointed Masunda as consultant on September 12, 2022, and later as a trustee together with Francis Dzanya in November of the same year in order to operationalise it and use it as a tool to take over Chidawu's estate.
Kudenga, Masunda and Dzanya, working together with Chidawu's widow, Spiwe, then began acting as shareholders of Broadway, a group of companies owned by the late Zanu PF top official.
Under Broadway, there is Chizororo Eyrecourt, which holds land valued at around US$15 million in Harare South which Kudenga and team had been partitioning and selling claiming to be the owners of the company.
Broadway also owns Heritage Life Limited whose operations have been suspended by the Insurance and Pensions Commission due to the share ownership wrangle between Kudenga and Chidawu's daughter, Ropafadzo Sibusisiwe Chidawu.
But Kudenga and team's honeymoon over Chidawu's estate has been brought to an abrupt halt by the High Court which ruled that they are not shareholders.
The ruling was made after Ropafadzo approached the court challenging their shareholding in her father's sprawling estate under the umbrella name, Gombe Group of Companies, also known as Broadway Investments.
Broadway, represented by Chidawu's daughter, Ropafadzo was the applicant while the Oliver Mandishona Chidawu Trust was the respondent.
Ropafadzo was seeking an order declaring that the Oliver Mandishona Chidawu Trust does not own any shares in Broadway and thus has no right and/or title to claim as regards the exercise of shareholder powers/rights within the applicant.
In a ruling delivered on October 3, High Court judge Justice Joseph Chilimbe concurred with Broadway that Kudenga and Masunda were not shareholders.
"The application succeeds and it is declared that the respondent does not own any shares; neither is it a shareholder of the applicant and has no right and or title to claim as regards the exercise of shareholder power or rights within the applicant," read part of the order.
Justice Chilimbe however said he could not grant the second relief sought to have any act done or performed by the Kudenga and his team whilst purporting to be a shareholder of the Broadway to be declared null and void saying the applicant has not laid before the court the said acts as well as consequences thereof.
In her founding affidavit, Ropafadzo laid several grounds as proof of applicant's present and future rights. revolving Broadway's shares.
"Firstly, the deponent claimed that it was the applicant's right and entitlement to organise its affairs to the expected standard of propriety.
"Secondly, she contended that such a mandate included addressing the present anomaly where the respondent was incorrectly recognised as a shareholder of the company," part of the ruling read.
"Associated with this point was the undesirable state of affairs where the respondent assuming, enjoyed and exercised the rights of a shareholder.
"Whilst these were not particularised, one may presume that they included influencing or guiding the affairs of the applicant company. In addition, of course, to partaking in the fruits of commercial activity."
She said Kudenga was simply appointed as a trustee of Oliver Mandishona Chidawu Trust and was using the defunct transfer deed signed in 1992 but never operationalised to masquerade as a shareholder of Broadway, taking advantage of loopholes in governance in the company.
But Kudenga claimed that on 30 August 1991, "two certificates comprising 100% shareholding in applicant were issued to Mr Chidawu (28,000 shares) and Mrs Spiwe Chidawu (3,200 shares).
These share certificates were, according to Mr Kudenga, cancelled when the two shareholders each transferred their entire shareholding to the Oliver Mandishona Chidawu Trust on 29 April 2003.
Kudenga however failed to produce the share transfer certificates.
Only the share certificate for Chidawu Family Trust, acknowledged by the court as the initial shareholder was located.
Ropafadzo relied on the report by Bamu Attorneys which noted that Share certificate -7 referee to by Kudenga was in the name of Chidawu Family Trust and not Oliver Mandishona Chidawu Trust which Kudenga and the team were using to take control of the late businessman's cast empire.
The report also acknowledged Ropafadzo as a director of Broadway, despite Kudenga claiming she was not.
According to documents, Ropafadzo was appointed group managing director by the former minister on September 9 2020 before he died in 2022.
Kudenga is the managing director of BDO Zimbabwe Chartered Accountants, whose firm has suffered reputational damages after former National Social Security Authority board chair Robin Vela successfully challenged its forensic audit report, with the court ruling that the company was not professional.
First Mutual also challenged the firm's audit report, describing it a shoddy and unprofessional.
In 2021, Kudenga was also removed from the Cold Storage Commission as a corporate rescuer after Nicholas Haverscroft of Boustead Beef, one of the defunct meat processor's creditors and peer-chartered accountancy firms made complaints about audit work carried out by BDO.
Masunda was also in court battling charges of assaulting Ropafadzo on August 4 this year after she visited him at his Milton Park offices to discuss the wrangle over her father's estate.
The former mayor was however discharged on the allegations on Friday.
Source - zimlive
