Interfin Bank to inherit CFX Bank ownership dispute

It is being widely reported that Interfin Bank have decided to go ahead and invest in the disputed CFX Bank Limited. In a recent article entitled "How Interfin got into bed with CFX" which appears at http://www.thestandard.co.zw/business/22311-how-interfin-got-into-bed-with-cfx.html it is clear CFX is suffering effects of being a disputed asset.In generall the market accepts my claim that CFX Bank was illegally and irreularly snatched from me.As result the market is trading cautiously with CFX Bank which has resulted in poor operational perfomance and poor share price performance.

It appears Interfin Bank have decided to inherit CFX Bank ownership problems.By trying to swallow an illegally aqcuired asset Interfin is now becoming party to money and transaction laundering.And this has its own benefits ,and consequences.

It appears there is a misunderstanding on why I have been publishing letters relating to claim for ownership of 309 million Century/CFX Bank shares. In addition some have asked why the matter is being raised 5 years after the 309 Million shares were irregularly sold and transferred.It is important that this matter be resolved to allow the Institutions involved to move forward.

When the illegal sale of my 309 million Century Bank Shares was done on or around 12 May 2004 I through my lawyers Ziweni and Company filed a high court application to block the sale of the shares. This record should still be there at the Harare High Court. As soon as we filed this application I was then specified without a hearing. This limited my ability to follow up the application. My lawyer and his firm was also specified. Leaving me without legal representation on the matter.

This was all done to ensure that the 309 million shares are sold, transferred and Century/CFX Bank is snatched from my Company – ENG Capital.

Several articles have been written highlighting how these 309 million shares and Century/CFX bank was grabbed from ENG Capital. Over the time we had hoped the current and previous Directors and Management of CFX Bank would reach out and try to find out what really transpired and resolve our claim. This is the normal way of doing business.

If you hear someone claiming ownership of your Bank or business you are expected to confront or engage that person to verify the nature of their claim. The CFX Bank Board, Management and shareholders somehow made the arrogant decision to behave as if everything is normal and totally disregard a claim which has been documented even at High court since day one of the fraudulent merger between Century and CFX Bank.

At this stage I have written to Interfin to document and alert them to the nature and magnitude of my claim.In addition my Lawyers Gutu and Chikowero Attorney at Law have also written to Interfin Bank advising them of the long running ownership dispute.Since this is ongoing I have created another website to document Interfin Bank's attempt to launder CFX Bank and legitimize an illegal seizure of my Bank .The Website is

Zimbabwe: How Interfin Got Into Bed With CFX

CFX Financial Services (CFX FS) "begged" Interfin Holdings Limited to take up a controlling shareholding in the institution as it raced against time to meet the minimum capital requirements for the bank, according to information obtained last week.

Finance Bank of Zambia (FBZ) was the front runner for the CFX FS stake up until the last minute when Interfin sprang a surprise and agreed to underwrite the US$10 million rights offer on condition that it gets a controlling shareholding in the institution.

In the run up to the September 30 minimum capital deadline set by the central bank, FBZ executives had been shuttling between Lusaka and Harare to finalise the tie-up.

CFX FS's principal subsidiary CFX Bank is struggling to meet the US$6.25 million minimum capital requirements set by the Reserve Bank of Zimbabwe (RBZ).

So far the bank has US$1.25 million and the money raised from the rights offer will be adequate for the bank to be compliant with the March 2010 minimum capital requirements of US$12.5 million.

Details obtained last week show that FBZ were scared by former ENG director, Gilbert Muponda's claims that CFX FS's takeover of then Century Bank, which the businessman claims belonged to his now defunct ENG Capital Limited was improper.

Muponda claims 309 million shares belonging to Century Bank were fraudulently sold at the time of the merger.

Muponda even went a step further by writing to Credit Suisse to dissuade them from taking up shareholding in CFX FS. Credit Suisse has 40% shareholding in FBZ.

With FBZ dragging its feet after Muponda's claims, CFX FS had no choice but to approach Interfin, close sources said last week.

Emissaries from CFX FS were sent to Interfin persuading the cash-rich investment holding company to partner them in their hour of need.

"CFX directors begged Interfin to come and take up a controlling shareholding as they had little option to raise the required US$6.25 million as per central bank minimum capital requirements," a close source said.

"Interfin had the money and they called the shots and this is the reason why they are underwriting the rights issue on condition that they will get 51% post the rights issue."

CFX managing director Emmanuel Tagarira told Standardbusiness that the market was aware that CFX were failing to raise the required minimum capital and the coming on board of Interfin was a response to the distress calls.

He confirmed that they had approached Interfin for a helping hand.

Tagarira said Muponda's claims had scared off the Zambian firm from taking up a shareholding in the institution.

Asked whether Interfin were not affected by Muponda's claims, Tagarira said: "Being locally owned, they know what happened to Muponda"

The rights offer opened on Monday and will close on Friday. The listing of the new shares on ZSE is scheduled for December 3.

In terms of the agreement, CFX FS will issue new ordinary shares to Interfin by way of a private placement at a premium of 10% above the rights over price, only to the extent that it enables the underwriters to get a 51% stake in the issued ordinary share capital of CFX FS after the proposed transaction.

Should there be any balance of the unsubscribed rights offer shares remaining after satisfying the 51% shareholding cap, directors, "will through a private placement issue irredeemable non-convertible and non-cumulative preference shares at (London Interbank Offered Rates (LIBOR) plus five percent per annum to the underwriter."

Interfin Holdings Limited is a former holding company of Interfin Merchant Bank, Altfin Holdings and Interfin Securities among others.


After the unbundling exercise that occurred in the Interfin group, Interfin is now an investment holding company.

Its four directors -- Timothy Chiganze; Jeremiah Tsodzai, Christopher Sambaza and Farai Rwodzi -- sit on the boards of various listed companies.

CFX and Zimbabwe Allied Banking Group (ZABG) are still to meet the minimum capital requirements of US$6.25 million as of September 30.

However, the RBZ has already given the two institutions some time to put their houses in order.

ZAGB will be returned to its previous owners while the rights issue saved CFX's day.

http://allafrica.com/stories/200911231961.html

Letter to Zimbabwe Minister of Finance

Minister of Finance
Ministry of Finance
New Government Complex
P.O. Box 7705
Harare
Zimbabwe,

15 August 2009

Dear Hon Minister Tendai Biti

RE ; GILBERT MUPONDA and ENG CAPITAL (PVT) LTD RETURN OF SEIZED ASSETS

Hon Minister Biti this is an appeal to your esteemed office for your intervention in the return of wrongfully seized personal assets and those of ENG Capital - a legally incorporated company under Zimbabwe's Constitution and the Company Act.

1 - My name is Gilbert Muponda , I am a Zimbabwean born Entrepreneur currently living in exile in Toronto, Canada. I am a founder and shareholder of ENG Capital (PVT) LTD . You may have never heard of me so I will give you some brief back ground .I was the first person arrested in the 2003-2004 so-called anti graft campaign by Gideon Gono immediately after he took over at the RBZ on fabricated charges and allegations. These allegations were a smokescreen created to allow the grabbing of my assets and those owned by my Company ENG Capital (PVT) LTD. In the process of being dispossessed on my assets and ENG assets I was arrested, abused, beaten, harassed, tortured, denied food, medicine, water and sleep all in an effort to get me to confess to false charges whilst my assets were being stripped from me. In addition I was forced to sleep with dead bodies and share blankets with people suffering from infectious diseases as a way to weaken my resolve and coerce me to surrender my fight to protect my Company and my assets. It is only natural justice that assets seized under such conditions be returned or compensation be paid and those responsible held accountable.

I was specified without being accorded an opportunity to defend myself or present my side of the facts. The constitution of Zimbabwe is clear that before anyone is specified that individual must be accorded a hearing wherein they can present relevant facts. This did not happen which was deliberately done to strip me of my Company and personal assets.

ENG was sufficiently liquid and solvent to meet its liabilities but despite all this its cheques were being bounced and dishonored. This act alone of bouncing and dishonoring cheques of a Financial Institution creates panic and impression of a Bankrupt Institution. It must be noted First Mutual Life and National Discount House being ENG counter parties in fact sued Zimbank for irregularly dishonoring ENG cheques at a time the ENG account was fully funded and had sufficient funds to meet its liabilities. This clearly confirms a well calculated campaign to close down ENG and grab its assets.


2 - The purpose of my letter is to seek your assistance in recovery of ENG assets which were unjustly Taken over by certain individuals. Specifically I am seeking your attention on the possible return of Century Bank /CFX Bank to ENG Capital and its Shareholders and Contributories. This is an ownership dispute which may have far repercussions as Zimbabwe tries to repair its image as an Investor friendly destination. Since the formation of the GNU it has given hope that a sense of Justice can be done or seen to be done on individuals who were illegally and irregularly disposed of their assets.

I would like Century Bank/CFX Bank returned to me or to be fairly compensated for the controlling stake that was snatched from ENG. By way of copy of this letter I also seek to engage CFX BANK shareholders and Management on how my claim can be amicably be resolved.

3 - I am writing to you as Minister responsible for both the Reserve Bank ,Zimbabwe Stock Exchange and the Financial sector regulation. The Financial sector is on recovery path and the particular Institution is also on recovery path and as such its important that the dispute be resolved amicably.

4 - The Government of Zimbabwe (GoZ) through its central bank, The Reserve Bank of Zimbabwe (RBZ), by way of instruction from its governor, Dr Gideon Gono, seized and forfeited my personal assets and those of my company ENG, without due process.

5 - I am seeking the return of my Primary residence and home at number 17 Chishawasha road, Chishawasha Hills, Umwinsdale. Harare. This was my personal Property, only home and Primary residence which was seized and sold without due process and was against all natural justice as it left me homeless.

6 - The seizure occurred when government took away my personal property and sold it, while the forfeiture occurred when legal title to my property was permanently transferred to the state.

7 - Dr Gideon Gono, the RBZ, the GoZ (through the AG’s office), police, and prosecutors, possess the power to seize any assets on the slightest pretext, whilst abusing the existing seizure law.

8 - Honorable Minister, justice requires that the Ministry of Finance lift the corporate veil of CFX Holding and Century Bank and peer under the skirts of those companies to determine the extent of the ENG asset theft that occurred. And follow the track of various changes of ownership of that Bank over the last 5 years.

9 - ENG, a company incorporated under Zimbabwean law, is a juristic person, a bearer of rights and duties that is not a natural person, but which is given legal personality by the law. An incorporated company is recognized by law as a separate legal entity, distinct from the separate personalities of the members of the body. The law should treat ENG like any other independent person having rights and liabilities. A company, as a legal person, may enter into contracts, own property, ENG owned a material amount of valuable assets despite the media campaign which tried to portray ENG as a pyramid scheme which only owned vehicles.ENG owned Century BANK which was subsequently renamed CFX Bank.

ENG was sufficiently liquid and solvent to meet its liabilities but despite all this its cheques were being bounced and dishonored. This act alone of bouncing and dishonoring cheques of a Financial Institution creates panic and impression of a Bankrupt Institution. It must be noted First Mutual Life and National Discount House being ENG counter parties in fact sued Zimbank for irregularly dishonoring ENG cheques at a time the ENG account was fully funded and had sufficient funds to meet its liabilities. This clearly confirms a well calculated campaign to close down ENG and grab its assets.


10 - ENG Capital group had a market value of US$ 175 million, just before the RBZ descended on the Institution.

Below is a brief ENG Group Structure ;
ENG HOLDINGS GROUP STRUCTURE
- SUBSIDIARIES
- ENG CAPITAL INVESTMENTS PVT LTD
- ENG ASSET MANAGEMENT PVT LTD
- ENG REAL ESTATE
- ENG NOMINEES PVT LTD
- ENG PRIVATE EQUITY (PVT) LTD
- ENG CAPITAL ADVISORY SERVICES
- ENG STRUCTURED FINANCE
ADDITIONAL MAJOR ASSETS OWNED
- Century Bank Holdings (now CFX bank)
- Leasing Company of Zimbabwe, Century Asset Managers)
- Century Discount House
- Hybri Micro-Finance Institution
- Care Insurance PVT LTD
- RestCel Insurance PVT LTD
- Amalgamated Health Services ? (Harare West Hospital )
- 15% of OK Zimbabwe Limited
- 15% of Zimplow Holdings Limited
- 20% Medtech Holdings Limited
- Hornet Re-Insurance PVT LTD
- Pearl Pension Fund Management
- 25 % Clan Holdings Limited
- 25 % Zimbabwe News Papers Group - Zimpapers Limited
- Allied Conveyor Belts PVT LTD
- River Drilling PVT LTD
- Real Estate including (Anastasia Court, Belgravia House, Thaine Building)
- Various Listed ZSE Listed shares
- Treasury Bills
- GMB Bills
- Cargill Commercial Paper
- $ 4 billion - Alliance Capital Debenture (representing 123 million First Mutual Life shares)
- 23 Million First Mutual Life shares


11- This mêlée was nothing more than a ploy to infringe upon my citizenship rights and strip me of my assets; a well orchestrated political game to deny perceived enemies of the governor financial freedom.

12 - My battle against civil asset forfeiture is one for the preservation of freedom and property. This is an important area as Zimbabwe seeks to portray an image of a stable state with the rule of law and private property rights are protected and preserved.

13 - All facts indicate to a grand miscarriage of Justice.

14 - A miscarriage of justice occurred as ENG and its directors now bear the burden of proving their innocence. The preponderance of evidence, which means that the RBZ only must make a better case - however slight, than the property owner – ENG. This Honorable Minister is not how we expect justice to carried out in country a country seeking to re-establish itself as an attractive investment destination.



15 - As a detailed background in April 2003 ENG Capital Investments acquired Century Discount Holdings from Century Financial Holdings ( A ZSE listed Financial Holdings Firm).The purchase price was Z$1.5 billion then equivalent to US$ 3 million. The purchase price was paid in full. ENG then applied to the Registrar of Banks and Financial Institutions for the change of controlling shareholder approval which approvals were denied.

16 - After several attempts to get the underlying reasons for the denial I was informed that " the Authorities" were not comfortable with ENG political inclination which they said remained "unclear" in addition issue of the ENG Directors age was raised. We then tried to find out if Century Financial Holdings was in a position to refund ENG for the purchase price and to reverse the Century Discount House purchase. Century Holdings was not in a position to refund ENG.

17 - The only recourse was that ENG had to acquire Century Financial Holdings to mitigate any potential loss of outlay on the Century Discount house acquisition. As such ENG and its associated Companies acquired a total of 52% of Century Financial Holdings making Century and ENG subsidiary.

18 - After my arrest on fabricated charges ENG was placed into Provisional Liquidation as a way to secure the creditors. The creditors agreed to take shares held by ENG IN lieu of payment. As such the contributories, directors and lawyers and creditors agreed the shares should not be sold whilst a fair valuation was being negotiated. However we were shocked to read in the papers that a parcel of 309,000,000 Century shares belonging to ENG had been sold through a pre-fixed special bargain transaction on or about 12 May 2004. The beneficiary to this transaction have remained a mystery even though we have reliable information as to the probable ultimate beneficiaries.

19 - Within a week of this sell of shares it was announced that Century Bank will now be merged with CFX Bank and the new Bank will be called CFX Bank. It is clear the merger was a laundering transaction meant to hide and sanitize the illegal and irregular transfer of the shares owned by ENG.The name Century was immediately removed and the new entity rebranded CFX Bank despite the fact that Century Bank provided a majority of the assets and infrastructure of the new Bank.

20 - The so-called merger was only arranged to hide the true nature of the illegality of the transfer of ENG shares in Century. It is clear that without the illegal and irregular share transfer the merger would not have happened and would not have made any sense ,it was therefore just done to cover the tracks of the asset grab that had taken place

21 - Through our Lawyers Ziweni and Company we sought the identity of the buyer and also to clarify that the share sell was null and void as it had all whole marks of corruption, insider dealing and was being challenged by the beneficial owners of the shares. In addition the shares had been sold through a special bargain and not an open market transparent transaction. The shares were sold for an unrealistic amount of Z$ 3 billion when ENG had acquired the same shares for at least Z$35 billion. This resulted in the prejudice of Z$ 32 billion to ENG Creditors and Contributories/Shareholders. As such ENG contributories were not fairly and justly paid for the value of the shares held by ENG. Its this discrepancy that I want resolved and close the matter so that the Institution and My self can each focus on our future without any litigation or dispute lingering on.

22 - We also asked the Zimbabwe Stock Exchange to investigate and stop the share transfer. However due to the general prevailing atmosphere and fear to challenge "authorities " no one was willing to assist us to stop or challenge this illegal and irregular transfer of the shares to an " unidentified" buyer believed to be a group of senior political figures. In this instance the Zimbabwe Stock Exchange did not act properly and prudently in defending and safeguarding shareholder interests. Given that we had raised a legitimate concern the share transfer should not have been permitted.

23 - As a way forward I propose that Century Bank /CFX Bank and other ENG Assets be returned to ENG Shareholders/ Contributories or a fair compensation be worked out and paid out to the ENG Shareholders and Contributories to settle the dispute. I further request your assistance on the return the return of my Primary residence 17 Chishawasha Road,Chishawasha Hills,Umwinsdale. Harare. This illegal seizure left me destitute and homeless.

For the sake of transparency I am copying this letter to the following ;

Reserve Bank of Zimbabwe Governor - Dr Gono
Minister of Justice - Hon Patrick Chinamasa
Zimbabwe Stock Exchange CEO - Mr Emmanuel Munyukwi
CFX BANK Board of Directors

As indicated above I hope we can quickly come to conclusion on the matter as a pro-longed dispute may not be in anyone’s interest.

Yours Faithfully,

Gilbert Muponda

1-416-841-5542
1-647-994-5542

Email - gilbert@gilbertmuponda.com
Skype ID - gilbert.muponda

Letter to Interfin Bank Directors

The Shareholders

Interfin Holdings Limited

15th Floor, NSSA Building

Cnr Sam Nujoma St/Julius Nyerere Way

HARARE

4 November 2009

Attention: Mr. R. Njanike

Dear Gentlemen and Lady,


RE ; PROPOSED INTERFIN ACQUISITION OF MY BANK - CENTURY/CFX BANK LIMITED

I refer to various media reports which suggest Interfin Holdings Limited plans to acquire a 51% stake in My Bank Century/CFX Bank. Further reference is made to the letter from my lawyers Gutu and Chikowero Attorneys at Law dated 2 November 2009 and my letter of yesterday to your Board of Directors. The purpose of this letter is to warn Interfin Financial Holdings Limited not to interpose itself in the CFX ownership dispute as you may regret that transaction. Interfin should not meddle in this as the consequences will be dire.

(1) Current CFX Bank lawyers a flaunting around their “legal opinion” as fact. Firstly CFX Bank lawyers are compromised as they can not provide an Independent legal opinion in a matter in which they have an interest since they are representing the respondent. They have a conflict of interest and should have recused themselves in providing the legal opinion. So I guess they just provided this “legal opinion” to earn fees knowing fully well that their opinion in this matter wasn’t even worth the piece of paper it was written on.

(2) Their purported legal opinion is rather misplaced and misdirected in as much as it seeks to analyze current ENG legal status .The current status is immaterial since we are trying to correct fraud and theft which resulted in ENG being incapacitated.

(3) Further CFX Bank Lawyers are assuming that since I remain specified in Zimbabwe therefore I have no capacity to vigorously pursue this matter. This is fallacious and ill advised .I hope the same lawyers are aware that Financial markets do not operate in a vacuum and in the bigger scheme of things Financial markets are not controlled from Harare. As indicated previously no stone will be left unturned till justice prevails on this matter. This means all legal options are on the table and legal action is being persuading in several jurisdictions.

(4) CFX Bank lawyers are further peddling a tired lie that the shares were being sold to pay off ENG creditors. This totally ignores where the matter started and how it developed into a crisis. The original and official allegation was that ENG Capital was a brief case Company which had no meaningful assets. ENG and Myself were further demonized and smeared that the only visible assets acquired were cars. Shouldn’t CFX Lawyers be addressing this anomaly. How can a brief case Company own 309 million shares in a Bank. How come the public was not clearly told that ENG owned a Bank .Why was there over focus on cars which made up less than 1% of ENG Capital base? Assuming for one moment that ENG had real problems ,Why wasn’t it well advertised that even though ENG was having problems it owned a Bank and bidders would be invited to take over that Bank and pay a fair price? Why was the disposal being done clandestinely and under cover of darkness?

(5) ENG was sufficiently liquid and solvent to meet its liabilities but despite all this its cheques were being bounced and dishonored. This act alone of bouncing and dishonoring cheques of a Financial Institution creates panic and impression of a Bankrupt Institution. It must be noted First Mutual Life and National Discount House being ENG counter parties in fact sued Zimbank for irregularly dishonoring ENG cheques at a time the ENG account was fully funded and had sufficient funds to meet its liabilities. This clearly confirms a well calculated campaign to close down ENG and grab its assets.


(6) I am sure you were told that ENG CAPITAL had many cars, and these cars were the only assets that ENG had. The correct and accurate facts are that ENG was a Group of Companies which Companies had Directors, Managers and employees and the cars were for the use of these members of staff who ran the various companies which made up ENG CAPITAL.

(7) ENG Capital group had a market value of US$ 175 million, just before the RBZ descended on the Institution.

Below is a brief ENG Group Structure ;
ENG HOLDINGS GROUP STRUCTURE
- SUBSIDIARIES
- ENG CAPITAL INVESTMENTS PVT LTD
- ENG ASSET MANAGEMENT PVT LTD
- ENG REAL ESTATE
- ENG NOMINEES PVT LTD
- ENG PRIVATE EQUITY (PVT) LTD
- ENG CAPITAL ADVISORY SERVICES
- ENG STRUCTURED FINANCE
ADDITIONAL MAJOR ASSETS OWNED
- Century Bank Holdings (now CFX bank)
- Leasing Company of Zimbabwe, Century Asset Managers)
- Century Discount House
- Hybri Micro-Finance Institution
- Care Insurance PVT LTD
- RestCel Insurance PVT LTD
- Amalgamated Health Services (Harare West Hospital )
- 15% of OK Zimbabwe Limited
- 15% of Zimplow Holdings Limited
- 20% Medtech Holdings Limited
- Hornet Re-Insurance PVT LTD
- Pearl Pension Fund Management
- 25 % Clan Holdings Limited
- 25 % Zimbabwe News Papers Group - Zimpapers Limited
- Allied Conveyor Belts PVT LTD
- River Drilling PVT LTD
- Real Estate including (Anastasia Court, Belgravia House, Thaine Building)
- Various Listed ZSE Listed shares
- Treasury Bills
- GMB Bills
- Cargill Commercial Paper
- $ 4 billion - Alliance Capital Debenture (representing 123 million First Mutual Life shares)
- 23 Million First Mutual Life shares

This is relevant as it proves beyond any doubt that ENG was a solid Group of Companies. It was targeted out greed by plotters including senior politicians who wanted to loot and grab assets.


(8) This mêlée was nothing more than a ploy to infringe upon my citizenship rights and strip me of my assets; a well orchestrated political game to deny perceived enemies of the governor financial freedom.
(9) My battle against civil asset forfeiture is one for the preservation of freedom and property. This is an important area as Zimbabwe seeks to portray an image of a stable state with the rule of law and private property rights are protected and preserved.

(10) All facts indicate to a grand miscarriage of Justice.

(11) A miscarriage of justice occurred as ENG and its directors now bear the burden of proving their innocence. The preponderance of evidence, which means that the RBZ only must make a better case - however slight, than the property owner – ENG.

(12) The 309 Century Financial Holdings Limited Million shares in question were sold through Fidelity Stock brokers on or around May 13, 2004. Within the same week an announcement was then made that CFX Bank was taking over Century Holdings. The shares were sold to Gono’s reported consortium for Z$2,9 billion when ENG had spent $35 billion to accumulate the shares, thereby prejudicing ENG, Creditors, Investors and contributories of at least Z$32,1 billion.

(13) As ENG Co-founder, Contributory and Shareholder, I wrote to the Zimbabwe Stock Exchange Chief Executive Mr Emmanuel Munyukwi asking for an investigation because we had agreed with the majority of creditors that the shares should not be sold but rather swapped with creditors and investors instead of selling them at an unreasonable price. But the 309 million Century /CFX Financial Holdings million shares were somehow clandestinely sold and that transaction enabled CFX Bank to take over Century Holdings Limited.

(14) This allowed the reverse listing of CFX Bank on to the Zimbabwe Stock Exchange. Without those 309 million Century Holdings Limited million shares owned by ENG the CFX/Century merger would have never happened. Gono and his proxies became the new controlling shareholder of the new merged bank. Is this by design or accident? Gono then forced out the Mr Sean Maloney who had helped to put together the transaction. Mr Sean Maloney had to leave the country under unclear circumstances . Part of the same shares snatched From ENG were later transferred to Premier Bank Financial Holdings which is reportedly owned by Governor Gono .There has generally been shuffling of shares which is normally associated with covering tracks of an illegal and irregular transaction.

(15) ENG directors and contributories asked the high court to set aside the sale of the shares and the matter action is still before the courts in Harare. We asked Zimbabwe Stock Exchange Committee to investigate. They refused. We asked the brokers for the identity of the buyer of our shares. They refused. The brokers indicated they were under serious pressure from individuals they couldn’t identify to maintain total secrecy on the identity of the buyer. Within a few days of raising the challenge of the CFX/Century shares Justice Minister specified me without affording me a hearing or an enquiry as required by the Constitution of Zimbabwe . The was specification at the instigation of senior politicians who were eyeing assets held by ENG including Century/CFX Bank. The specification was meant to harass, cow, intimidate and silence me from raising further complaints and challenges regarding ENG assets specifically these 309 million shares in Century/CFX Financial Holdings.

(16) Since the ENG shares in Century /CFX Bank Financial Holdings were irregularly transferred the Bank ownership remains in dispute. The ENG shareholders and contributories filed and sought a high court order to stop the transfer of the shares until the dispute had been resolved . The shares were still clandestinely transferred despite the pending high court application to resolve the dispute . After filing for this order My Lawyer the late Oscar Ziweni was also specified by the Minister of Justice and threatened ,harassed and intimidated until he went into hiding. However the point remains ENG Founders, Shareholders and Contributories still lay claim to these shares and stake in Century/ CFX BANK which were looted by Senior Government officials.

In conclusion Interfin Holdings Limited should consider itself warned. Interfin should stay clear of CFX Bank until this matter is resolved. There are entities and individuals in Zimbabwe who erroneously believe they are above the law. They have the mistaken belief they can grab, loot, steal assets and get away with it. In the process they try to launder their loot through various disposals and restructurings such as the ones that were done at Century/CFX Bank. This is being fully documented. CFX Bank has had more than 5 Managing Directors in a space of 2 years .This shows the instability brought about by being a disputed asset whilst the looters try to pull “ strings” from behind the scenes.






For the sake of transparency I am copying this letter to the following ;


Minister of Finance Zimbabwe

Reserve Bank of Zimbabwe Governor – Dr Gono


Zimbabwe Stock Exchange CEO – Mr Emmanuel Munyukwi

CFX BANK Board of Directors




Zimbabwe Parliament -Budget, Finance and Investment Promotion Members Below

Hon Zhanda , Hon. Beremauro, Hon. Bhebhe A, Hon. Chinyadza, Hon. Cross, Hon. Khumalo ,M Hon. Madzimure, Hon. Mashakada, Hon. Matshalaga, Hon. Mudiwa, Hon. Muguti, Hon. Mukanduri, Hon. Ndava, Hon. Nyaude. Committee Clerk- Mr Ratsakatika

My full contact details are below should you need any clarification.

Yours Faithfully,
Gilbert Muponda
Toronto ,Canada

1-416-841-5542

1-647-994-5542

Email – gilbert@gilbertmuponda.com


http://www.facebook.com/muponda

Skype ID – gilbert.muponda

The return of seized Banks must be explained

Whilst it may seem justice has finally been done by Gideon Gono’s admission of failure and returning ZABG (Trust Bank, Royal Bank, Barbican ) to its rightful owners there is need to do a proper analysis on why someone would grab an asset for over 5 years, use it and abuse it and then return it. This is not how a normal country should function.

In the High Court case Trust Holdings Ltd. v Reserve Bank of Zimbabwe and Others (67/05) [2005] ZWSC 36; SC36/05 (5 September 2005) ,it was made clear Gono was abusing his office and Authority and was possibly involved in unjust self enrichment schemes. These must be documented ,exposed and rectified where possible.

The court papers say “It was common cause that when the curator sold the assets he did not act in terms of the Troubled Financial Institutions Act. It was also common cause that the transfer of the assets was not in compliance with s 25(1) of the Banking Act, which provides for the amalgamation of banking institutions.”

Gono tried to justify asset looting and unjust self enrichment but the High Court said: “That submission cannot be accepted because the principal objective in placing a banking institution under the management of a curator is not to liquidate the institution but to enable it to become a successful concern. Accordingly, the curator’s power to sell any asset or branch of the banking institution concerned could only be exercised in order to achieve that objective.
… placing a banking institution under the management of a curator is akin to placing a company under a judicial manager, the principal objective being to remove the causes of the financial difficulties experienced by the company so that the company can function normally.

In addition, the proviso to 55(1)(g) of the Banking Act is significant. It states as follows:
‘… if at any time he (the curator) is of the opinion that continued curator ship will not enable the banking institution to become a successful concern, he shall advise the Reserve Bank accordingly. That … is a clear indication that the principal objective of the curator ship is to enable the banking institution to become a successful concern. Such an objective cannot be achieved by selling all the assets of the banking institution.”

How ever since Gono had a scheme to later on Privatize the ZABG by selling it to his fronts and cronies he tried to justify selling assets of banks under curatorship even when the High Court had ruled that selling such assets was contrary to the initial objectives of reviving the operations of the affected Banks.

It was clear Gono was abusing his office and breaking the law at will. This is part of the reason why Zimbabwe remains a very high risk investment destination. There is too much power concentrated in a few individuals hands .One such individual is Gideon Gono. This is the reason why he insists on staying on at the Reserve Bank of Zimbabwe even though this is putting the whole GNU Agreement on the line .

In the court pares it was noted that “Accordingly, s 55(2) of the Banking Act does not authorize a curator to sell all the assets of a banking institution. It follows that the curator acted unlawfully and that the sale and transfer of the assets of Trust Bank to the ZABG were null and void, and of no force or effect.”

Despite such a clear rebuttal by the High Court of Zimbabwe Gono proceeded to seize these Banks with a view to later on Privatize them by selling to related parties thus engaging in corrupt and self enrichment schemes. This plan was ideal and feasible when Gono could print Zimbabwe dollars at will and pump into these zombie banks he had created. However the dollarization of the Economy put paid to any such hopes since Gono could not and can not print US$ which are required to properly capitalize these banks. This forced Gono to hand over the banks to the original Entrepreneurs whom he had previously scandalized and criminalized whilst grabbing their assets.

It has been clear that all the looted Banks are finding it hard to recapitalize under the dollarized environment. Previously Gono as an interested party would just print more Zimbabwe dollars and keep these inefficient looted banks on life support aided by making profits from distributing Zimbabwe dollars into the black market. Now all that is gone so Gono has no choice but to hand over the Banks to their original owners.

All the looted Banks Trust, Barbican ,Royal , Intermarket and Century/CFX Bank are having a had time to remain viable .In addition they are failing to recapitilize due to the underlying ownership wrangles.

This article appears courtesy of GMRI CAPITAL – www.gmricapital.com . It is original content generated for 3MG MEDIA.

Gilbert Muponda is a Founder of GMRI CAPITAL . He can be reached at; www.ZimFace.com and www.facebook.com/muponda

Email: gilbert@gilbertmuponda.com . Skype ID: gilbert.Muponda

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