Greed and Corruption - Farai Rwodzi and Interfin Bank path to ruin

As the Century/CFX-Interfin Commercial Bank (IBC) dispute continues it is necessary to keep track on how this has been developing. When Finance Bank of Zambia backed by Credit Suisse pulled out of their planned investment from CFX Bank after confirming the share ownership dispute it became clear CFX Bank brand needed to resolve the ownership dispute. However the then CFX management and Shareholders connived with Farai Rwodzi and Interfin Bank Zimbabwe to try and hide the tracks of the fraud committed against me when the bank was seized from me.

It is important to note that any successor Institution which will take over Century/CFX Bank assets and Infrastructure and ZSE seat will continue to have this Ownership wrangle stigma until the matter is amicably resolved.Farai Rwodzi and Interfin Bank by trying to lauder this fraud and covering up the illegal asset seizures have opened themselves to severe reputation risk which will affect their operations and ability to do business beyond Zimbabwe. Below is a note I prepared in 2009 in response to some propaganda from the THEN Government of Zimbabwe,CFX lawyers and Shareholders who were working in cahoots with Farai Rwodzi and Interfin Bank Zimbabwe preparing to sanitize their then anticipated takeover of my Bank CFX Bank –Zimbabwe-

“The Government of Zimbabwe’s attempted frivolous rebuttal to ENG Capital’s legitimate claim actually confirms ENG Capital’s ownership of the disputed 309 million shares and ownership of Century/CFX Bank. Their only purported defence is that you should have complained earlier or you are specified so you cant do anything about it. This is just hiding behind technicalities without any real or meaningful response to a legitimate claim.

It is common knowledge that I was detained, arrested ,tortured and specified. The legal counsel Mr, Ziweni, whom I hired to represent ENG Capital, suffered the same fate, was arrested, harassed, intimidated, specified and unfortunately died under mysterious circumstances.

As I languished in remand prison, the RBZ Governor, Gideon Gono, embarked on an orgy of ENG Capital asset stripping and with the assistance of the body politic gained political mileage with a sustained Muponda vilification crusade. As part of this asset stripping the 309 million shares were “bought” by Gono’s front Network Investments , Kwangari Enterprises and others.
Zimbabweans were made to believe that ENG was bankrupt and that its only assets were expensive cars. To the contrary ENG was a solid financial services company which owned a bank – Century and had other tangible assets that far exceeded the liabilities, concocted by Gideon Gono. The rebuttal by the Government’s lawyer confirms ENG Capital owned Century/CFX Bank.

Please note that the very person, Gideon Gono, who declared ENG bankrupt, is the same person who sought my specification and is the same person who then authorized the disposal of the 309 million shares. This same person was also the beneficiary of the irregular disposal of the 309 million Century /CFX shares in collusion with the Zimbabwe Stock Exchange who violated various regulations meant to protect investors in a public company.
The government further claims that, “The transaction was done in 2004”, and “in terms of the Prevention of Corruption Act, Muponda is not able to conduct any material transaction on his behalf in respect of any companies he has invested in.”
The above statement assumes that I seek relief and am pursuing my claim through the compromised and tainted Zimbabwean judicial system, which the same system is willing to be used by corrupt politicians to punish the innocent while sanitizing financial fraud by elected officials. This partisan court system was the same used strip me of my legal rights and used to brand me a criminal without due process or the prospect of Habeas corpus.

As you maybe aware I am seeking the return and or compensation for 309 million Century Holdings Shares which were fraudulently and corruptly sold to a group of politicians including RBZ Governor Gono, Ministers Goche and Gumbo. They were sold to their investment consortium which had several shelf companies including Kwangari Enterprises and Network Investments. The sale of the shares was done on or about 12 May 2004 through a pre-determined and fixed price transaction called a special bargain. As a result the current CFX Bank is a product of fraudulent merger of Century Bank (owned by my company ENG Capital) and a much smaller CFX Bank which somehow got naming rights on the resultant Bank. This “merger” was just to hide the corruption and fraud.

It is clear that the asset looting and expropriation in Zimbabwe is being done by senior Government Officials directly or indirectly through fronts. This is why some targeted sanctions have been applied on some of the politicians because they need to be stopped from their attempts to launder the proceeds from businesses they have looted and unjust enrichment schemes must be stopped. Those who are acting as their fronts, associates and conduits need to take note.

As I have said there is an illusion and fallacious assumption that I wont be able to take action in Zimbabwe but depositors and investors must be cautious , be realistic and don’t take chances. ‘
This remains accurate. Farai Rwodzi and Interfin Bank will be exposed for what they are – a mone,asset and transaction laundering masquerading as a Bank.

Rwodzi & Interfin arrogant ,corrupt and generally greedy

There is need to clarify the root of the current dispute between Mr Farai Rwodzi of Interfin Bank Holdings Zimbabwe and myself. Mr Farai Rwodzi has become one of Zimbabwe’s leading robber barons by his greedy business behavior which has seen him being involved in every sector of the Zimbabwean business using political muscle and connections whilst arm twisting competitors and laundering the transactions to appear clean, legal and legitimate.

On 5 November I personally wrote to Mr Farai Rwodzi,Mr Raymond Njanike and Interfin Directors and share holders to stop meddling in the Century/CFX Bank.I clearly advised them not to invest in or buy Century/CFX Bank until the Bank ownership dispute is resolved.But because Mr Farai Rwodzi and Interfin Bank Zimbabwe are corrupt bullies who are greedy and believ they are above the law because of political connections they went ahead and took over the Bank and have now renamed my bank Interfin Banking Corporation in an effort to hide their takes of buying stolen property and trying to launder the deal to appear clean and legitimate.

The letter I wrote was widely circulated.It appeared on various newspaper including but not limited to www.Zimbabwe Metro.com ,www.zimeye.com ,www.zimguardian.com ,www.zimtelegraph.com and other newspapers .

The letter was clear and self explanatory.For the easy of reference I have attached the full version of the letter below .

“Letter to Interfin Bank Shareholders
Posted on November 5, 2009 | Category: Press Articles
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.Finance Bank of Zambia and its Swiss Financiers pulled out of this transaction because of the unresolved ownership dispute.How can Interfin ignore this?

(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. It appears as though they just provided this “legal opinion” to earn fees knowing fully well that their opinion in this matter was not 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 pursued 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’s 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 an impression of a Bankrupt Institution. It must be noted that First Mutual Life and National Discount House, being ENG counter parties in fact sued Zimbank for irregularly dishonoring ENG cheques at a time when 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 of which the 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 of 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 Senior Politician’s 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 a Senior Politician’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. Senior politicians and their proxies became the new controlling shareholder of the new merged bank. Is this by design or accident? Senior politicians then forced out 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 a Senior Politician. 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 . There 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

Letter warning Farai Rwodzi and Interfin Bank Zimbabwe Shareholders

Letter to Interfin Bank Shareholders
Posted on November 5, 2009 | Category: Press Articles
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.Finance Bank of Zambia and its Swiss Financiers pulled out of this transaction because of the unresolved ownership dispute.How can Interfin ignore this?

(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. It appears as though they just provided this “legal opinion” to earn fees knowing fully well that their opinion in this matter was not 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 pursued 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’s 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 an impression of a Bankrupt Institution. It must be noted that First Mutual Life and National Discount House, being ENG counter parties in fact sued Zimbank for irregularly dishonoring ENG cheques at a time when 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 of which the 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 of 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 Senior Politician’s 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 a Senior Politician’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. Senior politicians and their proxies became the new controlling shareholder of the new merged bank. Is this by design or accident? Senior politicians then forced out 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 a Senior Politician. 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 . There 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

Exiled businessman warns Interfin over its takeover of disputed bank

http://www.swradioafrica.com/News290710/exiled290710.htm

By Lance Guma
29 July 2010

An exiled Zimbabwean businessman, who says his bank was illegally seized by the government in 2004, has condemned the recent takeover of that same institution by Interfin Financial Services Limited.

Gilbert Muponda says he owns Century Bank through his ENG Capital investment company, but was forced to flee the country at the height of a controversial crackdown on the financial sector in 2004.

Prominent businessmen like James Makamba, Mutumwa Mawere, Nicholas Vingirai and James Mushore, among others, were persecuted on various allegations, including black market trading.

Six years down the line Century Bank now known as CFX Bank has been taken over by Interfin Bank. A furious Muponda told Newsreel; ‘Interfin is now liable to my claim due to their attempt to cover up the ownership dispute by rebranding and changing CFX Bank operations. This is clear money and transaction laundering being executed by Farai Rwodzi and Interfin Bank.” Rwodzi is the CEO.

In November 2009 Muponda successfully used an internet campaign to block a major financial institution from buying the disputed bank. One of the world’s biggest banks, Credit Suisse, through the Finance Bank of Zambia, had sought to buy the struggling CFX Bank.

But using an aggressive internet campaign dubbed ‘Return Muponda’s Bank’ he made enough noise to scare Credit Suisse away from the deal. Internet banners picked up by Google, plus letters and articles circulated online, were enough to finally discourage the deal from going through.

When Muponda and his colleagues left the country there was a belief that they had engaged in underhand financial deals, including running away with investor’s money. But on Thursday he told us the government at the time was desperate to find scapegoats in the business community, to blame for the country’s economy collapse. “I was turned into a corruption poster boy and spent 4 months in prison without trial,’ he said.

So what was the case all about? Muponda said; “We did not have a political godfather. Despite claims we stole people’s money and did not have assets to pay them back, we got bail in court after proving the company had Z$200 billion in assets against total liabilities of Z$61 billion. After being granted bail I was told I could start the company again but only if we got a political godfather within ZANU PF.”

Muponda, through his lawyers, has now written to the new owners of the bank telling them the transaction will expose them to ‘reputational risk’. He said that warning is still in force as he seeks compensation for his shares ‘fraudulently’ seized. He said CFX Bank was struggling to mobilize sufficient business to return to profitability because ‘all market participants in Zimbabwe are fully aware of my claim and the high reputational risk that comes with ignoring the claim.’

http://www.swradioafrica.com/News290710/exiled290710.htm

Rwodzi and Interfin Bank refining the money laundering art

Interfin Bank Zimbabwe and Founder Mr Farai Rwodzi are attempting to sanitize and launder their take over of a disputed asset/Bank. The company controversially acquired a controlling stake in the disputed Century/CFX Bank last year after shareholders of the financially-distressed banking institution either ignored or failed to take up their rights in a $10 million equity offering underwritten by the acquirer. CFX Bank became distressed after negative publicity emanating from my claim and legal action I was pursuing after 309 million Century Bank Shares I owned through my Company ENG Capital were fraudulently transferred and converted at the time of the merger between CFX Bank and Century in 2004

In money laundering, the proceeds of crime are run through the financial system to disguise their illegal origins and make them appear to be legitimate funds. In this case Interfin took over a disputed asset as in buying stolen property and are trying to clean up the transaction and remove any trace from the initial fraud that was committed against me.

The 309 million Century Bank Shares I owned through my Company ENG Capital were fraudulently transferred and converted at the time of the merger between CFX Bank and Century in 2004 and Interfin Bank proceeded to take over CFX ignoring the disputed ownership of FCFX Bank and the attendant reputational risk. I even wrote to Credit Suisse to dissuade them from taking up shareholding in CFX FS. Credit Suisse has 40% shareholding in FBZ.

The ownership dispute was triggered by the special bargain sale of 309,000,000 shares on 12 May 2004 but the total shares claimed by me and my Company is 900,000,000 the balance was transferred in peace meal fashion to avoid detection of the fraud and transaction laundering that was being perpetrated. CFX was nothing more than a forex trading shop which was used to swallow Century Bank as a cover up of the illegal seizure of the Bank. I lost Century Bank shares owned through ENG Capital after they were “fraudulently” converted into CFX Bank which took over Century Bank assets and Branch network.

Money laundering is not a single act but is in fact a process that is accomplished in three basic steps. These steps can be taken at the same time in the course of a single transaction, but they can also appear in well separable forms one by one as well.

Although money laundering often involves a complex series of transactions, it generally includes three basic steps.

The first step is the physical disposal of ill gotten cash/asset. This Interfin have done by handing over CFX bank licence to the RBZ whilst holding on to the assets ,infrastructure and network from the disputed CFX Bank This placement might be accomplished by depositing the cash in domestic banks or, increasingly, in other types of formal or informal financial institutions.

The second step in money laundering is known as layering, carrying out complex layers of financial transactions to separate the illicit proceeds from their source and disguise the audit trail. This phase can involve such transactions as the wire transfer of deposited cash, the conversion of deposited cash into monetary instruments (bonds, stocks, traveler's checks), the resale of high-value goods and monetary instruments, and investment in real estate and legitimate businesses, particularly in the leisure and tourism industries. This has already been done through a celebrated stock markert listing.This may later haunt the ZSE as it may develop a reputation on money laundering listings such as this one by Mr Farai Rwodzi and Interfin Bank Zimbabwe

Interfin Holdings reverse listed on the Zimbabwe Stock Exchange (ZSE) using the infrastructure and legal structure taken over from my bank.

Interfin Holdings is currently the holding company of Interfin Merchant Bank, Interfin Securities, a stocks trader on the ZSE, Interfin Asset Management Limited and Altfin Holdings Limited. This structure easily enables money laundering with Interfin appearing to be a legitimate business.The key to this is that this is not the first or last questionable transaction which Interfin have done.

Altfin Holdings is a holding company for a portfolio of insurance units that include the flagship operation, Altfin Insurance, a short term insurance company in Zimbabwe that has a presence in sub Saharan Africa, and Altfin Life, a life assurance business recently added to the group. Given the current attempt to launder the CFX transaction one wonders what else has been laundered through Interfin. What else has been hidden and passed out as clean and honestly earned money.

The last step is to make the wealth derived from the illicit proceeds appear legitimate. This is what Interfin and Mr Farai Rwodzi are trying to do by reverse listing their Interfin Banking Corporation (IBC ) whilst killing the original CFX Bank brand.This integration might involve any number of techniques, such as using front companies to "lend" the proceeds back to the owner or using funds on deposit in foreign financial institutions as security for domestic loans. Another common technique is over-invoicing or producing false invoices for goods sold--or supposedly sold--across borders. This appears to be another technique that Interfin is mastering with their reported Namibia and “International” expansion.

All the qualities,hallmarks and acts of a money laundering scheme are present in the Interfin model and the reverse listing by taking over CFX Bank and discarding its license and brand whilst taking over its assets, infrastructure and ZSE listing spot on the bourse. The following clearly happened at the direction of Mr Farai Rwodzi and other shareholders need to be aware of the on going reputational risk that will come with transactions of this nature

• the need to conceal the origin and true ownership of the proceeds;
• the need to maintain control of the proceeds;
• the need to change the form of the proceeds in order to shrink the huge volumes of cash generated by the initial criminal activity of corruption and influence peddling.

Whilst Mr Farai Rwodzi and Interfin may get away with the listing on the ZSE for now in the long run they will have huge reputational risk emanating from the CFX Bank ownership dispute which they are trying to sweep under the carpet and rename and rebrand the problem.

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

Gilbert Muponda is an Investment Banker and 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

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

Rwodzi and Interfin Bank pays US$5.3 million for Muponda’s CFX disputed shares!!!!

Interfin Financial Services Limited ( Interfin Bank) on 5 July 2010 sealed its reverse take-over of the disputed CFX Financial Services and traded on the Zimbabwe Stock Exchange (ZSE) for the first time around mid-morning thereby taking over the CFX ownership dispute and controversy. Interfin are now liable to my claim due to their attempt to cover up the ownership dispute by rebranding and changing CFX Bank operations. This is clear money and transaction laundering being executed by Farai Rwodzi and Interfin Bank.
The 309 million Century Bank Shares I owned through my Company ENG Capital were fraudulently transferred and converted at the time of the merger between CFX Bank and Century in 2004 and Interfin Bank proceeded to take over CFX ignoring the disputed ownership of FCFX Bank and the attendant reputational risk. I even wrote to Credit Suisse to dissuade them from taking up shareholding in CFX FS. Credit Suisse has 40% shareholding in FBZ.

The ownership dispute was triggered by the special bargain sale of 309,000,000 shares on 12 May 2004 but the total shares claimed by me and my Company is 900,000,000 the balance was transferred in peace meal fashion to avoid detection of the fraud and transaction laundering that was being perpetrated. CFX was nothing more than a forex trading shop which was used to swallow Century Bank as a cover up of the illegal seizure of the Bank. I lost Century Bank shares owned through ENG Capital after they were “fraudulently” converted into CFX Bank which took over Century Bank assets and Branch network.

My specification was part of a grand plan to dispossess him of his shares in Century Bank, held through ENG. And it appears Mr Farai Rwodzi and Interfin are trying to ignore the reality of the dispute and are attempting to launder the transaction by reverse listing Interfin whilst simulteneously destroying CFX Brand to cover their tracks of involvement in clear fraud and money and transaction laundering.

Through my lawyers Gutu and Chikowero Attorneys I clearly warned Interfin that “This transaction may expose your bank to high reputational risk as the dispute may entangle your organisation as the rightful owners of CFX/Century bank seek to reclaim their stolen shares." That warning is still in force as I seek compensation for my shares fraudulently seized from me and my Company.
In addition through my lawyers Gutu & Chikowero Attorneys-at-law wrote to CFX company secretary Patricia advising her and the Company about our intention to purse this matter till its resolved amicably.

CFX Bank has remained under the curse of an established stigma due to the fraud described above and failure of management to properly handle the matter.

CFX FS directors noted in their circular to shareholders that a perennial crisis within the banking arm had made it impossible for CFX Bank to continue operations without getting into the merger, as funds raised to recapitalize the bank were already being spent on operations because of the failure of their brand to appeal to an untrusting public.
"Despite being recapitalized through the rights offer, CFX Bank has to date been unable to mobilize sufficient business to return to profitability, resultantly failing to achieve and maintain the minimum regulatory capital level of US$12,5 million," said the directors in a circular. This is because of the public’s general awareness to the underlying ownership dispute which has now been transferred to Interfin Bank and its brand.
The CFX brand has been underperforming because all market participants in Zimbabwe are fully aware of my claim and the high reputational risk that comes with ignoring the claim.

When the illegal transfer and conversion 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.

Interfin Bank Zimbabwe are hoping the ownership problem will disappear by rebranding the Bank and renaming it Interfin Commercial Bank. The hope to hide the tracks of the theft and fraud by changing colours,brand and outside appearance of a stolen asset. This is the trick which CFX Bank tried when they fraudulently took over Century Bank Assets and tried to rebrand it into CFX Bank dropping the name Century from the rebranded Bank.

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

The trend in Zimbabwe is that once a Bank or Asset is illegally seized there is an immediate need to rebrand it. Intermarket Bank was swallowed by ZB Bank. Beverly Building Society was rebranded to CBZ Building society. Trust, Barbican and Royal Bank were rebranded as ZABG.It is clear there is now a preferred modus operandi of seizing assets and renaming them and rebranding them. Interfin took over my Bank Century/CFX and then proceed to rename it and rebrand it as Interfin Commercial Bank since they desperately need the vast commercial Bank network and infrastructure owned by my Bank Century/CFX bank.
The company acquired a controlling stake in CFX last year after shareholders of the financially-distressed banking institution either ignored or failed to take up their rights in a $10 million equity offering underwritten by the acquirer. “IBC (Interfin Banking Corporation) will take over CFX Bank’s employees and their related liabilities,” CFX added. It appears Interfin ignored my advice


Only 1% of the company’s shareholders subscribed, making it the country’s worst equity offering on record.Technically, the underwriter commits to buy up whatever remains of an equity offering in the case of under-subscription.It is clear the other shareholders did not follow their rights because they saw the merit of my claim and the future litigation that lies ahead.

CFX had floated the equity offering to raise the minimum capital requirements set by the Reserve Bank of Zimbabwe following the collapse of its equity-financing negotiations with the Finance Bank of Zambia backed by Credit Suisse.Finance Bank of Zambia and Credit Suisse pulled out after I had written to them and convinced them of my ownership claim. It is unfortunate that Interfin has decided to ignore what other bigger banks have admitted to be a legitimate ownership dispute which must be solved first before the bank can transfer ownership or assets.
Interfin Holdings splurged US$5,3 million for the unsubscribed ordinary shares and preference shares.
A few local banks once came into CFX FS and left. POSB, first, with a huge outlays of the now out-of-circulation Zim-babwe dollars, and second, Premier Banking Corporation, which raised speculation about a merger. Both left in a huff, although POSB still keeps clutching to a small parcel in CFX FS, which will now be diluted after the merger with Interfin Banking Corporation.These all left because of the ownership dispute which the CF Management has been trying to ignore and wish away.
This article appears courtesy of GMRI CAPITAL – www.gmricapital.com . It is original content generated for 3MG MEDIA.

Gilbert Muponda is an Investment Banker and 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

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

Rwodzi and Interfin Bank pays US$5.3 million for Muponda’s CFX disputed shares!!!!

Rwodzi and Interfin Bank pays US$5.3 million for Muponda’s CFX disputed shares!!!!

Interfin Financial Services Limited ( Interfin Bank) on 5 July 2010 sealed its reverse take-over of the disputed CFX Financial Services and traded on the Zimbabwe Stock Exchange (ZSE) for the first time around mid-morning thereby taking over the CFX ownership dispute and controversy. Interfin are now liable to my claim due to their attempt to cover up the ownership dispute by rebranding and changing CFX Bank operations. This is clear money and transaction laundering being executed by Farai Rwodzi and Interfin Bank.
The 309 million Century Bank Shares I owned through my Company ENG Capital were fraudulently transferred and converted at the time of the merger between CFX Bank and Century in 2004 and Interfin Bank proceeded to take over CFX ignoring the disputed ownership of FCFX Bank and the attendant reputational risk. I even wrote to Credit Suisse to dissuade them from taking up shareholding in CFX FS. Credit Suisse has 40% shareholding in FBZ.

The ownership dispute was triggered by the special bargain sale of 309,000,000 shares on 12 May 2004 but the total shares claimed by me and my Company is 900,000,000 the balance was transferred in peace meal fashion to avoid detection of the fraud and transaction laundering that was being perpetrated. CFX was nothing more than a forex trading shop which was used to swallow Century Bank as a cover up of the illegal seizure of the Bank. I lost Century Bank shares owned through ENG Capital after they were “fraudulently” converted into CFX Bank which took over Century Bank assets and Branch network.

My specification was part of a grand plan to dispossess him of his shares in Century Bank, held through ENG. And it appears Mr Farai Rwodzi and Interfin are trying to ignore the reality of the dispute and are attempting to launder the transaction by reverse listing Interfin whilst simulteneously destroying CFX Brand to cover their tracks of involvement in clear fraud and money and transaction laundering.

Through my lawyers Gutu and Chikowero Attorneys I clearly warned Interfin that “This transaction may expose your bank to high reputational risk as the dispute may entangle your organisation as the rightful owners of CFX/Century bank seek to reclaim their stolen shares." That warning is still in force as I seek compensation for my shares fraudulently seized from me and my Company.
In addition through my lawyers Gutu & Chikowero Attorneys-at-law wrote to CFX company secretary Patricia advising her and the Company about our intention to purse this matter till its resolved amicably.

CFX Bank has remained under the curse of an established stigma due to the fraud described above and failure of management to properly handle the matter.

CFX FS directors noted in their circular to shareholders that a perennial crisis within the banking arm had made it impossible for CFX Bank to continue operations without getting into the merger, as funds raised to recapitalize the bank were already being spent on operations because of the failure of their brand to appeal to an untrusting public.
"Despite being recapitalized through the rights offer, CFX Bank has to date been unable to mobilize sufficient business to return to profitability, resultantly failing to achieve and maintain the minimum regulatory capital level of US$12,5 million," said the directors in a circular. This is because of the public’s general awareness to the underlying ownership dispute which has now been transferred to Interfin Bank and its brand.
The CFX brand has been underperforming because all market participants in Zimbabwe are fully aware of my claim and the high reputational risk that comes with ignoring the claim.

When the illegal transfer and conversion 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.

Interfin Bank Zimbabwe are hoping the ownership problem will disappear by rebranding the Bank and renaming it Interfin Commercial Bank. The hope to hide the tracks of the theft and fraud by changing colours,brand and outside appearance of a stolen asset. This is the trick which CFX Bank tried when they fraudulently took over Century Bank Assets and tried to rebrand it into CFX Bank dropping the name Century from the rebranded Bank.

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

The trend in Zimbabwe is that once a Bank or Asset is illegally seized there is an immediate need to rebrand it. Intermarket Bank was swallowed by ZB Bank. Beverly Building Society was rebranded to CBZ Building society. Trust, Barbican and Royal Bank were rebranded as ZABG.It is clear there is now a preferred modus operandi of seizing assets and renaming them and rebranding them. Interfin took over my Bank Century/CFX and then proceed to rename it and rebrand it as Interfin Commercial Bank since they desperately need the vast commercial Bank network and infrastructure owned by my Bank Century/CFX bank.
The company acquired a controlling stake in CFX last year after shareholders of the financially-distressed banking institution either ignored or failed to take up their rights in a $10 million equity offering underwritten by the acquirer. “IBC (Interfin Banking Corporation) will take over CFX Bank’s employees and their related liabilities,” CFX added. It appears Interfin ignored my advice


Only 1% of the company’s shareholders subscribed, making it the country’s worst equity offering on record.Technically, the underwriter commits to buy up whatever remains of an equity offering in the case of under-subscription.It is clear the other shareholders did not follow their rights because they saw the merit of my claim and the future litigation that lies ahead.

CFX had floated the equity offering to raise the minimum capital requirements set by the Reserve Bank of Zimbabwe following the collapse of its equity-financing negotiations with the Finance Bank of Zambia backed by Credit Suisse.Finance Bank of Zambia and Credit Suisse pulled out after I had written to them and convinced them of my ownership claim. It is unfortunate that Interfin has decided to ignore what other bigger banks have admitted to be a legitimate ownership dispute which must be solved first before the bank can transfer ownership or assets.
Interfin Holdings splurged US$5,3 million for the unsubscribed ordinary shares and preference shares.
A few local banks once came into CFX FS and left. POSB, first, with a huge outlays of the now out-of-circulation Zim-babwe dollars, and second, Premier Banking Corporation, which raised speculation about a merger. Both left in a huff, although POSB still keeps clutching to a small parcel in CFX FS, which will now be diluted after the merger with Interfin Banking Corporation.These all left because of the ownership dispute which the CF Management has been trying to ignore and wish away.
This article appears courtesy of GMRI CAPITAL – www.gmricapital.com . It is original content generated for 3MG MEDIA.

Gilbert Muponda is an Investment Banker and 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

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

Rwodzi and Interfin Bank pays US$5.3 million for Muponda’s CFX disputed shares!!!!

Interfin Financial Services Limited ( Interfin Bank) on 5 July 2010 sealed its reverse take-over of the disputed CFX Financial Services and traded on the Zimbabwe Stock Exchange (ZSE) for the first time around mid-morning thereby taking over the CFX ownership dispute and controversy. Interfin are now liable to my claim due to their attempt to cover up the ownership dispute by rebranding and changing CFX Bank operations. This is clear money and transaction laundering being executed by Farai Rwodzi and Interfin Bank.
The 309 million Century Bank Shares I owned through my Company ENG Capital were fraudulently transferred and converted at the time of the merger between CFX Bank and Century in 2004 and Interfin Bank proceeded to take over CFX ignoring the disputed ownership of FCFX Bank and the attendant reputational risk. I even wrote to Credit Suisse to dissuade them from taking up shareholding in CFX FS. Credit Suisse has 40% shareholding in FBZ.

The ownership dispute was triggered by the special bargain sale of 309,000,000 shares on 12 May 2004 but the total shares claimed by me and my Company is 900,000,000 the balance was transferred in peace meal fashion to avoid detection of the fraud and transaction laundering that was being perpetrated. CFX was nothing more than a forex trading shop which was used to swallow Century Bank as a cover up of the illegal seizure of the Bank. I lost Century Bank shares owned through ENG Capital after they were “fraudulently” converted into CFX Bank which took over Century Bank assets and Branch network.

My specification was part of a grand plan to dispossess him of his shares in Century Bank, held through ENG. And it appears Mr Farai Rwodzi and Interfin are trying to ignore the reality of the dispute and are attempting to launder the transaction by reverse listing Interfin whilst simulteneously destroying CFX Brand to cover their tracks of involvement in clear fraud and money and transaction laundering.

Through my lawyers Gutu and Chikowero Attorneys I clearly warned Interfin that “This transaction may expose your bank to high reputational risk as the dispute may entangle your organisation as the rightful owners of CFX/Century bank seek to reclaim their stolen shares." That warning is still in force as I seek compensation for my shares fraudulently seized from me and my Company.
In addition through my lawyers Gutu & Chikowero Attorneys-at-law wrote to CFX company secretary Patricia advising her and the Company about our intention to purse this matter till its resolved amicably.

CFX Bank has remained under the curse of an established stigma due to the fraud described above and failure of management to properly handle the matter.

CFX FS directors noted in their circular to shareholders that a perennial crisis within the banking arm had made it impossible for CFX Bank to continue operations without getting into the merger, as funds raised to recapitalize the bank were already being spent on operations because of the failure of their brand to appeal to an untrusting public.
"Despite being recapitalized through the rights offer, CFX Bank has to date been unable to mobilize sufficient business to return to profitability, resultantly failing to achieve and maintain the minimum regulatory capital level of US$12,5 million," said the directors in a circular. This is because of the public’s general awareness to the underlying ownership dispute which has now been transferred to Interfin Bank and its brand.
The CFX brand has been underperforming because all market participants in Zimbabwe are fully aware of my claim and the high reputational risk that comes with ignoring the claim.

When the illegal transfer and conversion 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.

Interfin Bank Zimbabwe are hoping the ownership problem will disappear by rebranding the Bank and renaming it Interfin Commercial Bank. The hope to hide the tracks of the theft and fraud by changing colours,brand and outside appearance of a stolen asset. This is the trick which CFX Bank tried when they fraudulently took over Century Bank Assets and tried to rebrand it into CFX Bank dropping the name Century from the rebranded Bank.

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

The trend in Zimbabwe is that once a Bank or Asset is illegally seized there is an immediate need to rebrand it. Intermarket Bank was swallowed by ZB Bank. Beverly Building Society was rebranded to CBZ Building society. Trust, Barbican and Royal Bank were rebranded as ZABG.It is clear there is now a preferred modus operandi of seizing assets and renaming them and rebranding them. Interfin took over my Bank Century/CFX and then proceed to rename it and rebrand it as Interfin Commercial Bank since they desperately need the vast commercial Bank network and infrastructure owned by my Bank Century/CFX bank.
The company acquired a controlling stake in CFX last year after shareholders of the financially-distressed banking institution either ignored or failed to take up their rights in a $10 million equity offering underwritten by the acquirer. “IBC (Interfin Banking Corporation) will take over CFX Bank’s employees and their related liabilities,” CFX added. It appears Interfin ignored my advice


Only 1% of the company’s shareholders subscribed, making it the country’s worst equity offering on record.Technically, the underwriter commits to buy up whatever remains of an equity offering in the case of under-subscription.It is clear the other shareholders did not follow their rights because they saw the merit of my claim and the future litigation that lies ahead.

CFX had floated the equity offering to raise the minimum capital requirements set by the Reserve Bank of Zimbabwe following the collapse of its equity-financing negotiations with the Finance Bank of Zambia backed by Credit Suisse.Finance Bank of Zambia and Credit Suisse pulled out after I had written to them and convinced them of my ownership claim. It is unfortunate that Interfin has decided to ignore what other bigger banks have admitted to be a legitimate ownership dispute which must be solved first before the bank can transfer ownership or assets.
Interfin Holdings splurged US$5,3 million for the unsubscribed ordinary shares and preference shares.
A few local banks once came into CFX FS and left. POSB, first, with a huge outlays of the now out-of-circulation Zim-babwe dollars, and second, Premier Banking Corporation, which raised speculation about a merger. Both left in a huff, although POSB still keeps clutching to a small parcel in CFX FS, which will now be diluted after the merger with Interfin Banking Corporation.These all left because of the ownership dispute which the CF Management has been trying to ignore and wish away.
This article appears courtesy of GMRI CAPITAL – www.gmricapital.com . It is original content generated for 3MG MEDIA.

Gilbert Muponda is an Investment Banker and 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

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542