The Political Economy of Sub Saharan Africa in particular and Africa in general has been affected by political instability and Africa has been lacking a voice at important groupings such as G8 and G20. Despite having some of the world’s huge reserves of natural resources such as gold ,diamonds, coal, steel, and oil. Sub Saharan Africa remains largely undeveloped and poverty stricken. The region’s population largely lives under poverty and foreign direct investment has been rather limited partly due to political violence, civil strife and wars. Some of the problems emanate from poor Governance and poorly developed National Institutions.
Sub Sahara Africa has seen massive interest from China and other Economic giants in a rush to exploit natural resources but the benefits of such a rush have been very difficult to quantify .The region lacks Financial muscle and clout to be a serious voice on important Global issues such as the Carbon reduction, recession fighting measures and reform at International Institutions such as IMF and World Bank. There a link between poor Economic performance and political instability and general lack of property and human rights. A contrast will be made on how political stability can attract investment and lead to economic growth and prosperity whilst political violence and instability leads to poor economic performance and possibly Economic meltdown .
Political and economic development has been hindered as the sub region has failed to get on to other Global trends such as the wide spread use of the Internet as a powerful communication tool. This has partly been a direct result of censorship attempts by the ruling class who have been actively restricting the use of for instance, the Internet and at times mobile phones.
Political instability has fostered the lack of democracy which is a direct result of undeveloped institutions and concentration of power in the hands of a few individuals has hindered the development of a middle class which normally provides a hub for Economic development. The high political risk has resulted in the sub region being by-passed in Global Financial markets as the region lacks properly developed Institutions or the necessary size to carry any weight in global affairs despite being home to significant amounts of natural resources. In several Sub Saharan Africa nations Property and human rights are regularly ignored which has served to increase political risk.
As a direct result of political instability Capital flight, brain drain has been a big problem for Sub Saharan Africa. A significant portion of educated people have migrated from the region to North America, Europe ,Australia and other nations offering security and hope of a prosperous future.
The brain drain and capital flight problem has created a vicious circle with the required skilled personnel leaving for greener pastures as they are the ones who can afford to leave. This in turn has created further shortages of capable and experienced people who are required to develop any Economy.
Political violence and intolerance of opposition has been common in the sub-region. This has affected the development of National Institutions which are supposed to check, balance and stop abuse of power and curtail corrupt leadership.
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
Twitter ; http://twitter.com/gmricapital
Phone: 1-416-841-5542
Sunday, November 22, 2009
Tuesday, November 17, 2009
Bank policy reversal 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 papers 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
Twitter ; http://twitter.com/gmricapital
Phone: 1-416-841-5542
Monday, November 16, 2009
Gono owes Zimbabwe an explanation and apology
Late last week it was widely reported that Reserve Bank of Zimbabwe Governor Gideon Gono has ordered the return of some of the confiscated banks to their original owners. This was both shocking and surprising given that no credible explanation was given for such a dramatic policy suamersault.These Banks were looted and grabbed on the pretext that the owners were unfit to run banks. The owners of these Banks were scandalized and criminalized whilst their assets were being seized under some smoke screen of false and fabricated allegations.
In the High Court of Zimbabwe case Mzwimbi and Others v Reserve Bank of Zimbabwe and Others (42/05) [2005] ZWSC 35; SC35/05 (5 September 2005) ,Royal Bank owners vigorously resisted this but Gono using various judicial and extra judicial means still seized the banks and tried to create a “super bank” called Zimbabwe Amalgamated Bank Group ( Z.A.B.G). This project failed dismally as the ownership dispute negatively affected investor and depositor sentiment.
Royal Bank Lawyers stated “Our clients have been advised that public statements, advising the bank’s customers, creditors, shareholders and other interested persons have been made to the effect that the bank is part of an institution known as Zimbabwe Allied Banking Group, whereas the correct position is that the legal requirements for the amalgamation of banking institutions as provided for in the Troubled Financial Institutions (Resolution) Act and the Banking Act have not at all been pursued. Requisite notices to former directors, creditors and shareholders have not been issued in terms of the Troubled Financial Institutions Resolution Act. No confirmation application has been made to a judge of the High Court as is required in terms of that Act. No amalgamation application has been made in terms of the Banking Act. Consequently, the highly publicized amalgamation of Royal Bank with any other bank is manifestly unlawful.
The Lawyers further stated that’s “ We are advised that notwithstanding the fact that no lawful amalgamation has taken place in terms of the law, advertising signs of Royal Bank have been removed from its premises and have been replaced by advertising signs of Zimbabwe Allied Banking Group. There is no legal basis whatsoever for this action at this stage. Former directors, shareholders, creditors and other interested parties have received no communication whatsoever regarding what is taking place. You have displayed a brazen and contemptuous disregard of their interests and the law relating to amalgamation of banks.
It was common cause that when the curator sold the assets of Royal Bank to the ZABG he did not act in terms of the Troubled Financial Institutions Act. It was also common cause that the transfer of Royal Bank’s assets to the ZABG was not in compliance with s 25(1) of the Banking Act which provides for the amalgamation of banking institutions.”
It is clear from the above that the Reserve Bank was acting beyond its powers and in the process Gono was breaking the laws. The recent decision to return the Banks only confirms that Gono is admitting to wrong doing for which he owes the affected Banks, the shareholders, employees and Directors a public apology for the humiliation and embarrassment he brought upon these once thriving institutions which are now mere ghosts of their former self.
These Banks were not alone in their unfair treatment. Nicholas Vingirai of Transnational Holdings had his Intermarket Banking Corporation seized and incorporated into Z B Bank Holdings, Century Bank was grabbed from Gilbert Muponda and ENG Capital and fraudulently merged with CFX Bank.
Whilst there is no independent study to verify the cost of such illegal Bank seizures it goes without saying that Zimbabwe’s Financial Sector was severely affected by these ill advised policies led by Gideon Gono. It is clear that whilst Gono has admitted failure by surrendering the Banks he still has to own up to his poor plan and strategy of stripping Banks from their owners. All these Banks ZABG ,CFX/Century and Intermarket Bank have failed to perform after being looted from their original owners. Gono must explain why he now finds it acceptable to hand over the Banks to the very same executives he accused of being a threat to “ National Security”.
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
Twitter ; http://twitter.com/gmricapital
Phone: 1-416-841-5542
Friday, November 6, 2009
Finance Bank faces rivalry in acquiring Zim’s CFX Bank
By Nchima Nchito Jr
Fri 06 Nov. 2009,
FINANCE Bank Zambia’s (FBZ) plans of acquiring a controlling stake in CFX Bank of Zimbabwe have suffered yet another setback following announcements that Interfin Bank is also eyeing the institution.
Recently, there have been several hurdles faced by FBZ in its plans to acquire a controlling stake in CFX.
The most recent snag involved the application by lawyers representing Gilbert Muponda, threatening legal action should a scheduled meeting for November take place at which CFX was supposed to decide on the offer by FBZ.
FBZ’s proposed acquisition of CFX Financial Services would be largely funded by Credit Suisse that has a 40 per cent stake in the institution.
CFX Bank was formed after a merger between CFX Financial Services (CFX) and Century Holdings Limited in 2004.
According to local reports in Zimbabwe, Muponda’s lawyers have also written to Interfin Bank asking them to trade carefully on their reported interest in acquiring a controlling stake in CFX Bank which Muponda alleges was illegally and irregularly snatched from him.
“We recently learnt, through some local media reports, that Interfin Holdings Limited is now firm favourite to acquire a controlling stake in CFX Financial Services Limited ahead of the Finance Bank of Zambia. We are of the humble view that your company should formally be made aware of our client’s proprietary interest in the shareholding of CFX Financial Services Ltd,” wrote the lawyers to Interfin.
“Kindly note that our client’s main bone of contention is the argument that CFX Financial Services Limited took over Century Bank which belonged to ENG Capital (Pvt) Ltd. Whether or not ENG Capital (Pvt) Ltd is operational is not relevant at this juncture. What is relevant is the fact that Century Bank was owned by ENG Capital (Pvt) Ltd at the time that it was acquired by CFX Financial Services Limited. Put alternatively, it is incumbent upon CFX Financial Services Limited to provide a clear audit trail of how it acquired Century Bank.”
http://www.postzambia.com/post-read_article.php?articleId=1451
Zimbabwe: New Twist to CFX Rescue Plan
Zimbabwe: New Twist to CFX Rescue Plan
Martin Kadzere and Golden Sibanda
5 November 2009
Harare — FORMER ENG director Gilbert Muponda has launched a fresh bid to scuttle Interfin Holdings Limited's plans to acquire CFX Financial Services citing his proprietary interest in the shareholding of CFX FS.
The latest developments have risen just after the specified businessman blocked acquisition of the local financial institution by the Finance Bank of Zambia. Interfin Holdings is now poised to acquire a 51 percent controlling stake in CFX FS and has been enlisted as underwriter and technical equity partner for CFX's proposed US$10 million rights offer.
Lawyers representing the specified businessman on Monday wrote to Interfin advising about Muponda's interests in the CFX FS shareholding, which could again throw spanners in CFX's other rescue plan.
"We are of the humble view that your company should formally be made aware of our client's proprietary interest in the shareholding of CFX Financial Services Ltd.
"For your convenience, therefore, we forward herewith copies of the following documents," wrote Mr Obert Gutu of Gutu and Chikowero Attorneys. The letter was also copied to CFX Financial Services' managing director Mr Emmanuel Tagarira as well as the Minister of Finance Mr Tendai Biti.
Muponda is contesting CFX Financial Services' takeover of Century Bank, which the businessman claims belonged to his now defunct ENG Capital Limited. Muponda is demanding an audit on how the troubled financial institution acquired Century Bank when CFX FS merged with Century Holdings in 2004. The exiled businessman claims 309 million shares belonging to Century Bank were fraudulently sold at the time of the merger.
CFX FS through its lawyers Kantor and Immerman, had earlier written to Muponda's lawyers questioning his legal stand on the Century shares considering that he remains a specified person in Zimbabwe.
In addition, CFX FS had also claimed that Century Bank liquidator sold the shares in question to settle the bank's exposure to creditors.
Furthermore, CFX FS questioned why Muponda had not raised his reservations at the time of the sale of the shares adding ENG Capital, which owned the shares, had also long ceased to be operational.
CFX FS had also demanded that in the event ENG Capital was still operational they be furnished with the full list of its directors, supported by CR14 documents filed with the registrar of companies and the full details of its shareholders.
"Whether or not ENG Capital (Pvt) Ltd is operational is not relevant at this juncture. What is relevant is the fact that Century Bank was owned by ENG Capital (Pvt) Ltd at the time that it was acquired by CFX Financial Services Limited.
"Put alternatively, it is incumbent upon CFX Financial Services Limited to provide a clear audit trail of how it acquired Century Bank. Thus, the issue of the 309 million shares that were held by our client in Century Bank becomes pertinent," wrote Muponda's lawyers.
Muponda has demanded to know "who purchased these shares and at what price? Why were the shares sold at a special bargain price? At the end of the day, who was the real beneficiary of this particular transaction?"
He said if proceeds of the sold shares paid creditors and depositors of the institution, the payment plan should be made available.
Muponda said his latest enquiries about the "Century shares will assist in helping you make an appropriate decision concerning the reported interest by your company in CFX Financial Services Limited".
The former ENG boss claims his specification was part of a grand plan to dispossess him of his shares in Century Bank, held through ENG.
Swiss Re backed Finance Bank of Zambia had appeared certain to acquire the 51 percent stake in CFX before pulling the plug on the deal, ostensibly, after Muponda warned CFX FS was subject to ongoing dispute.
Wrote Muponda: "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 assets seek to reclaim their shares." Muponda's lawyers have indicated that efforts are underway to have the ex-ENG director de-specified.
Wednesday, November 4, 2009
Letter to Interfin Bank Shareholders
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
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
Tuesday, November 3, 2009
Letter to Interfin Bank Directors on CFX Bank Investment
The Board of Directors
Interfin Holdings Limited
15th Floor, NSSA Building
Cnr Sam Nujoma St/Julius Nyerere Way
HARARE
3 November 2009
Attention: Mr. R. Njanike
Dear Gentlemen and Ladies,
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 controlling stake in My Bank Century/CFX Bank. I further refer to the letter from my
lawyers Gutu and Chikowero Attorneys at Law dated 2 November 2009. I trust my Lawyers
will effectively deal with this matter however I felt personally obliged to write to you
as I believe I personally know you and several members of your senior staff and Directors.
Current CFX Bank lawyers are now peddling a totally morally corrupt and bankrupt argument that the shares were sold to pay off ENG Capital Holdings (ENG) Creditors and depositors. This can not go unchallenged. As you will recall when the RBZ victimized ENG the allegation was that ENG was bankrupt and it had no meaningful assets. It was further alleged that ENG only had expensive cars. The state media misled the public and investors into believing that ENG was a shelf Company involved in speculation and no meaningful investments had been made by ENG. It is unfortunate that a once reputable firm is now trying to peddle a falsehood created by the plotters and state media in an effort to justify and sanitize fraud committed against me and ENG.
The real facts clearly show the ENG was solid and owned real assets such as Century/CFX Bank. It is clear ENG held highly valuable assets beyond the cars that were being over hyped in state media to divert public attention whilst ENG real assets such as Century/CFX Bank were being looted and grabbed by senior politicians and high ranking Government officials.
If ENG as already proven owned Century/CFX Bank then how could ENG have been bankrupt and how could investing in buying a Bank be classified as speculation? Is it not clear that ENG was targeted due to greedy of certain individuals who wanted to loot and grab ENG’s Assets such as Century/CFX Bank? ENG was targeted in a grand fraud scheme to strip me and ENG of various assets including Century/CFX Bank. The allegations of speculation and other financial irregularities were created by the plotters using state media and other hijacked state Institutions to mask the fraud and theft which was being committed against me and ENG.
At this stage it is not important to look at ENG legal status. What is in question here is CFX Bank’s legal status and how CFX Bank snatched ENG shares.CFX Bank needs to show an Independently verified and audit trail showing how it took over Century Bank .Who bought the 309 million shares? Why were the shares sold through a special bargain? What favors were involved? Why is it that within the same week of the 309 million shares being sold it was then immediately announced that Century Bank would be merged with CFX Bank? Is this not a clear case of corruption and insider trading? Why didn’t the RBZ and ZSE stop and investigate such clear insider trading and corruption?
1 - It is widely reported that Finance Bank Zambia and their Swiss Financiers have
developed cold feet on their previous intention on investing in CFX/Century Bank after
receiving the details of my claim. This is important as it confirms the legitimacy and
seriousness of the Century/CFX Bank ownership dispute .First its confirms that Finance
Bank and their Swiss Financiers have done their own back ground investigations plus due
diligence and have satisfied themselves that my claim is real, justified, serious and
legitimate. Secondly they have correctly assessed that reputation risk of investing in a
looted asset is too grave in this modern day where money and transaction laundering are
serious International crimes. Thirdly they have been correctly been advised of the
drastic and dramatic consequences of investing in an asset where a crime has been
committed in dispossessing the legitimate owner of the asset. The question then is if
Finance Bank and their Swiss Financiers have seen that the risk is too high how can
Interfin which is way smaller in terms of resources can try to assume risk which the
Worlds second largest re-insurer is not prepared to take?
2 - You are receiving this letter as notification of the course of action spearheaded
on behalf of myself, my company ENG CAPITAL (PVT) LTD (ENG) and its directors in our effort to
recover at least 309 000,000 (309 million) and up to 900,000,000 (Nine hundred Million),
Century Bank shares fraudulently converted into CFX Bank shares. The fraud was masked as
a merger between Century Bank and CFX Bank but after the merger Century name was dropped
to cover the tracks of the fraud. The dispute was triggered by the special bargain sale
of 309,000,000 shares but the total shares owned by ENG were 900,000,000 the balance was
transferred in peace-meal fashion to avoid detection of the fraud and transaction
laundering that was being perpetrated.
3 - As you may-be aware I am currently living in exile in Toronto, Canada. I am a
founder, shareholder and Contributory of ENG Capital (PVT) LTD .I am sure you are fully
aware of the back ground to this letter as various subsidiaries of my Company ENG were a
counter parties to your Bank. It is well known that 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.
4 - 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.
5 - Several other Banking Executives were later haunted, arrested, intimidated and
others forced into exile. Their Banks and other Financial Institutions were closed,
expropriated or taken over by Government or senior politicians. The affected individuals
include Messrs Nicholas Vingirai - Intermarket Financial Holdings, William Nyemba - Trust
Banking Corporation, Jeff Muzwimbi - Royal Bank and Dr Mthuli Ncube - Barbican Bank and
myself Gilbert Muponda of ENG Capital and Century Bank now CFX Bank. Mr Raymond Njanike I
believe you should be more aware of some of the exact facts relating to these case since
you were at the time a Managing Director of Trust Discount House which was part of the
affect Institutions.
6 - It is now a well known fact that the allegations raised against all the above
business people were a smokescreen to divert public attention and also strip these
individuals of the Businesses and assets. These business people have maintained their
innocence from day one despite being demonized , scandalized and criminalized. All of
them are at various stages of reclaiming their Banks and assets which were taken under a
dark cloud under the guise of anti-graft hyped campaign. This is relevant back ground to
give a general understanding of the circumstances giving rise to this claim and dispute.
7 - 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
8 - CFX BANK/Century Bank was unlawfully and illegally seized from my Company by the
Government of Zimbabwe using various means and schemes. The proposed investment by
Interfin Holdings Limited represents a blatantly transaction and money laundering act
meant to hide the tracks of the preceding illegal seizure of my asset (CFX BANK) by the
Zimbabwe Government using various illegal and cruel means. For this reason it is not a
wise investment by Interfin Holdings Limited as legal action is pending and in process to
reclaim the stolen assets which are now being sanitized through various disposals and
investments?.
9 - Interfin Holdings Limited are trying to buy an Asset (CFX Bank) which was looted
and expropriated from me and my Company. This is not right and must not be allowed to
happen. Interfin Holdings Limited is exposing itself to serious reputation risk as this
ownership wrangle is definitely going to drag its name and brand into asset looting and
expropriation that is currently going on in Zimbabwe. In addition the Directors and
Senior Management of Interfin are exposing themselves to serious personal risk which may
affect their ability to do business and legitimate transactions outside Zimbabwe. In
addition this risk may become contagion and affect every other entity or individual
associated with Interfin Holdings Limited.
10 - Through notice of this letter should Interfin Holdings Limited choose to continue
to Finance an illegal and money laundering transaction it will become party to the
pending litigation and be exposed to the attendant reputation risk.
11 - This is an on going effort to hold responsible those who looted assets and are now
trying launder their loot. All efforts are being made to pursue available legal channels
in multi-jurisdictions to ensure that the individuals and entities responsible are held
accountable for their actions. Please be guided accordingly as Interfin can easily be enjoined in the proceedings.
12 - At all times relevant to this document ENG was a corporation organized under the
laws of the Republic of Zimbabwe with its head office in Harare and be advised that I was
unlawfully separated from my business by the RBZ with the connivance of the CFX
directors.
13 - The shares in question have changed the ownership at the start of my claim ?with a
view to evading the consequences of the litigation?.
14 - Various transactions and Company re-organization schemes with the ultimate aim of
sanitizing asset looting and illegal expropriation of our Assets.
15 - It is important that your Organization avoids being a conduit to a money and asset
laundering scheme.
16 - The current and preceding Directors of CFX with a view to concealing the true
owners of shares in Century Bank later converted to CFX Bank and entered into a secret
arrangement with the Governor of the RBZ, whereby the latter acquired the shares,
obtained a specification order for all ENG directors thereon, brought the Century Bank
shares to sale under execution and purchased the shares for a new company CFX Bank,
organized later in which the RBZ Governor has a large interest through nominees.
17 - The allotment of shares to the GOZ in the new CFX Bank is proportionate to those
held by ENG in Century Bank and the CFX directors agreed with the RBZ Governor not reveal
this understanding to the other shareholders.
18 - ENG, Shareholders and Contributories and its directors have established a prima
facie case against Century/CFX Limited and intend to appoint a forensic auditor, whose
mandate shall be to determine the true nature of CFX?s shares.
19 - Century bank was a public company listed on the ZSE. This means the records of the
various ownership changes are available and Interfin Holdings Limited need to do a proper
Shareholder Audit Trail to verify the ENG ownership claim. In particular Interfin
Holdings Limited should ask for the Century/CFX Bank audited share register as at 31
December 2003 and 12 May 2004.This will confirm that indeed Century/CFX Bank was owned
and controlled by me and ENG Capital.
20 - The directors of Century/CFX are co-conspirators in an elaborate scheme to defraud
ENG. They have falsely and fraudulently with others known and unknown, unlawfully,
willfully, and knowingly did combine, conspire, confederate, and agree together and with
each other to commit offenses against ENG to commit fraud in connection with the purchase
and sale of securities issued.
21 - Furthermore the directors of Century/CFX provided false and misleading information
to CFX?s auditors and concealed from them their falsification of CFX?s books and records,
and manipulation of data recorded in CFX?s general ledger and subsidiary ledgers. making
and causing CFX to make untrue statements of material facts and omitting to state
material facts necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading
22 - For the foregoing reasons, your Proposed investment in CFX /Century Bank Zimbabwe,
the bank ownership transfer is subject to an on going dispute .This transaction will
expose your Bank to high reputation risk as the dispute may entangle your Organization as
the Rightful owners of CFX /Century Bank seek to reclaim their stolen shares and Bank. At
this stage it is also important to note that any dispute will entangle all Directors and
Major shareholders in their personal capacity.
23 - I have proven that Century/CFX Bank was owned by me and ENG Capital. I have
further proven that Century/CFX Bank was unlawfully, illegally and irregularly taken from
me through fraud, false imprisonment, torture, harassment. It therefore follows that any
transaction undertaken to sanitize such illegal actions in grabbing someone's assets
amounts to transactions laundering. And money Laundering. I am sure your organization
does not wish to be party to such serious international crime. As Bankers I am sure you
are aware of the serious consequences of trying to launder transactions and sanitize
illegal transactions. The risk involved is not worth it as Finance Bank Zambia and their
Swiss Partners have concluded.
24 - 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.
25 - 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.
26 - 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 an ENG subsidiary. The audited shareholder register of Century/CFX Bank as
at 31 December 2003 and 12 May 2004 will confirm this material fact.
27 - 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 has remained a mystery even though we have
reliable information as to the probable ultimate beneficiaries.
28 - Within a week of this sale 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.
29 - 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.
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. 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.
This matter is well documented and for easy of reference please refer to the following websites which have been specifically created to document this ownership dispute
(a) – www.cfxbank.com
(b) – www.cfxbank.blogspot.com
Given the above it is clear Interfin should not interpose itself in an ongoing
ownership dispute which has been in the courts for the last 5 years. Should it be necessary measures are already underway to create another website to deal with Interfin and document .
For the sake of transparency I am copying this letter to the following ;
Minister of Finance Zimbabwe – Hon T.L Biti
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[1]
http://www.facebook.com/muponda[2]
Skype ID gilbert.muponda
Interfin Holdings Limited
15th Floor, NSSA Building
Cnr Sam Nujoma St/Julius Nyerere Way
HARARE
3 November 2009
Attention: Mr. R. Njanike
Dear Gentlemen and Ladies,
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 controlling stake in My Bank Century/CFX Bank. I further refer to the letter from my
lawyers Gutu and Chikowero Attorneys at Law dated 2 November 2009. I trust my Lawyers
will effectively deal with this matter however I felt personally obliged to write to you
as I believe I personally know you and several members of your senior staff and Directors.
Current CFX Bank lawyers are now peddling a totally morally corrupt and bankrupt argument that the shares were sold to pay off ENG Capital Holdings (ENG) Creditors and depositors. This can not go unchallenged. As you will recall when the RBZ victimized ENG the allegation was that ENG was bankrupt and it had no meaningful assets. It was further alleged that ENG only had expensive cars. The state media misled the public and investors into believing that ENG was a shelf Company involved in speculation and no meaningful investments had been made by ENG. It is unfortunate that a once reputable firm is now trying to peddle a falsehood created by the plotters and state media in an effort to justify and sanitize fraud committed against me and ENG.
The real facts clearly show the ENG was solid and owned real assets such as Century/CFX Bank. It is clear ENG held highly valuable assets beyond the cars that were being over hyped in state media to divert public attention whilst ENG real assets such as Century/CFX Bank were being looted and grabbed by senior politicians and high ranking Government officials.
If ENG as already proven owned Century/CFX Bank then how could ENG have been bankrupt and how could investing in buying a Bank be classified as speculation? Is it not clear that ENG was targeted due to greedy of certain individuals who wanted to loot and grab ENG’s Assets such as Century/CFX Bank? ENG was targeted in a grand fraud scheme to strip me and ENG of various assets including Century/CFX Bank. The allegations of speculation and other financial irregularities were created by the plotters using state media and other hijacked state Institutions to mask the fraud and theft which was being committed against me and ENG.
At this stage it is not important to look at ENG legal status. What is in question here is CFX Bank’s legal status and how CFX Bank snatched ENG shares.CFX Bank needs to show an Independently verified and audit trail showing how it took over Century Bank .Who bought the 309 million shares? Why were the shares sold through a special bargain? What favors were involved? Why is it that within the same week of the 309 million shares being sold it was then immediately announced that Century Bank would be merged with CFX Bank? Is this not a clear case of corruption and insider trading? Why didn’t the RBZ and ZSE stop and investigate such clear insider trading and corruption?
1 - It is widely reported that Finance Bank Zambia and their Swiss Financiers have
developed cold feet on their previous intention on investing in CFX/Century Bank after
receiving the details of my claim. This is important as it confirms the legitimacy and
seriousness of the Century/CFX Bank ownership dispute .First its confirms that Finance
Bank and their Swiss Financiers have done their own back ground investigations plus due
diligence and have satisfied themselves that my claim is real, justified, serious and
legitimate. Secondly they have correctly assessed that reputation risk of investing in a
looted asset is too grave in this modern day where money and transaction laundering are
serious International crimes. Thirdly they have been correctly been advised of the
drastic and dramatic consequences of investing in an asset where a crime has been
committed in dispossessing the legitimate owner of the asset. The question then is if
Finance Bank and their Swiss Financiers have seen that the risk is too high how can
Interfin which is way smaller in terms of resources can try to assume risk which the
Worlds second largest re-insurer is not prepared to take?
2 - You are receiving this letter as notification of the course of action spearheaded
on behalf of myself, my company ENG CAPITAL (PVT) LTD (ENG) and its directors in our effort to
recover at least 309 000,000 (309 million) and up to 900,000,000 (Nine hundred Million),
Century Bank shares fraudulently converted into CFX Bank shares. The fraud was masked as
a merger between Century Bank and CFX Bank but after the merger Century name was dropped
to cover the tracks of the fraud. The dispute was triggered by the special bargain sale
of 309,000,000 shares but the total shares owned by ENG were 900,000,000 the balance was
transferred in peace-meal fashion to avoid detection of the fraud and transaction
laundering that was being perpetrated.
3 - As you may-be aware I am currently living in exile in Toronto, Canada. I am a
founder, shareholder and Contributory of ENG Capital (PVT) LTD .I am sure you are fully
aware of the back ground to this letter as various subsidiaries of my Company ENG were a
counter parties to your Bank. It is well known that 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.
4 - 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.
5 - Several other Banking Executives were later haunted, arrested, intimidated and
others forced into exile. Their Banks and other Financial Institutions were closed,
expropriated or taken over by Government or senior politicians. The affected individuals
include Messrs Nicholas Vingirai - Intermarket Financial Holdings, William Nyemba - Trust
Banking Corporation, Jeff Muzwimbi - Royal Bank and Dr Mthuli Ncube - Barbican Bank and
myself Gilbert Muponda of ENG Capital and Century Bank now CFX Bank. Mr Raymond Njanike I
believe you should be more aware of some of the exact facts relating to these case since
you were at the time a Managing Director of Trust Discount House which was part of the
affect Institutions.
6 - It is now a well known fact that the allegations raised against all the above
business people were a smokescreen to divert public attention and also strip these
individuals of the Businesses and assets. These business people have maintained their
innocence from day one despite being demonized , scandalized and criminalized. All of
them are at various stages of reclaiming their Banks and assets which were taken under a
dark cloud under the guise of anti-graft hyped campaign. This is relevant back ground to
give a general understanding of the circumstances giving rise to this claim and dispute.
7 - 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
8 - CFX BANK/Century Bank was unlawfully and illegally seized from my Company by the
Government of Zimbabwe using various means and schemes. The proposed investment by
Interfin Holdings Limited represents a blatantly transaction and money laundering act
meant to hide the tracks of the preceding illegal seizure of my asset (CFX BANK) by the
Zimbabwe Government using various illegal and cruel means. For this reason it is not a
wise investment by Interfin Holdings Limited as legal action is pending and in process to
reclaim the stolen assets which are now being sanitized through various disposals and
investments?.
9 - Interfin Holdings Limited are trying to buy an Asset (CFX Bank) which was looted
and expropriated from me and my Company. This is not right and must not be allowed to
happen. Interfin Holdings Limited is exposing itself to serious reputation risk as this
ownership wrangle is definitely going to drag its name and brand into asset looting and
expropriation that is currently going on in Zimbabwe. In addition the Directors and
Senior Management of Interfin are exposing themselves to serious personal risk which may
affect their ability to do business and legitimate transactions outside Zimbabwe. In
addition this risk may become contagion and affect every other entity or individual
associated with Interfin Holdings Limited.
10 - Through notice of this letter should Interfin Holdings Limited choose to continue
to Finance an illegal and money laundering transaction it will become party to the
pending litigation and be exposed to the attendant reputation risk.
11 - This is an on going effort to hold responsible those who looted assets and are now
trying launder their loot. All efforts are being made to pursue available legal channels
in multi-jurisdictions to ensure that the individuals and entities responsible are held
accountable for their actions. Please be guided accordingly as Interfin can easily be enjoined in the proceedings.
12 - At all times relevant to this document ENG was a corporation organized under the
laws of the Republic of Zimbabwe with its head office in Harare and be advised that I was
unlawfully separated from my business by the RBZ with the connivance of the CFX
directors.
13 - The shares in question have changed the ownership at the start of my claim ?with a
view to evading the consequences of the litigation?.
14 - Various transactions and Company re-organization schemes with the ultimate aim of
sanitizing asset looting and illegal expropriation of our Assets.
15 - It is important that your Organization avoids being a conduit to a money and asset
laundering scheme.
16 - The current and preceding Directors of CFX with a view to concealing the true
owners of shares in Century Bank later converted to CFX Bank and entered into a secret
arrangement with the Governor of the RBZ, whereby the latter acquired the shares,
obtained a specification order for all ENG directors thereon, brought the Century Bank
shares to sale under execution and purchased the shares for a new company CFX Bank,
organized later in which the RBZ Governor has a large interest through nominees.
17 - The allotment of shares to the GOZ in the new CFX Bank is proportionate to those
held by ENG in Century Bank and the CFX directors agreed with the RBZ Governor not reveal
this understanding to the other shareholders.
18 - ENG, Shareholders and Contributories and its directors have established a prima
facie case against Century/CFX Limited and intend to appoint a forensic auditor, whose
mandate shall be to determine the true nature of CFX?s shares.
19 - Century bank was a public company listed on the ZSE. This means the records of the
various ownership changes are available and Interfin Holdings Limited need to do a proper
Shareholder Audit Trail to verify the ENG ownership claim. In particular Interfin
Holdings Limited should ask for the Century/CFX Bank audited share register as at 31
December 2003 and 12 May 2004.This will confirm that indeed Century/CFX Bank was owned
and controlled by me and ENG Capital.
20 - The directors of Century/CFX are co-conspirators in an elaborate scheme to defraud
ENG. They have falsely and fraudulently with others known and unknown, unlawfully,
willfully, and knowingly did combine, conspire, confederate, and agree together and with
each other to commit offenses against ENG to commit fraud in connection with the purchase
and sale of securities issued.
21 - Furthermore the directors of Century/CFX provided false and misleading information
to CFX?s auditors and concealed from them their falsification of CFX?s books and records,
and manipulation of data recorded in CFX?s general ledger and subsidiary ledgers. making
and causing CFX to make untrue statements of material facts and omitting to state
material facts necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading
22 - For the foregoing reasons, your Proposed investment in CFX /Century Bank Zimbabwe,
the bank ownership transfer is subject to an on going dispute .This transaction will
expose your Bank to high reputation risk as the dispute may entangle your Organization as
the Rightful owners of CFX /Century Bank seek to reclaim their stolen shares and Bank. At
this stage it is also important to note that any dispute will entangle all Directors and
Major shareholders in their personal capacity.
23 - I have proven that Century/CFX Bank was owned by me and ENG Capital. I have
further proven that Century/CFX Bank was unlawfully, illegally and irregularly taken from
me through fraud, false imprisonment, torture, harassment. It therefore follows that any
transaction undertaken to sanitize such illegal actions in grabbing someone's assets
amounts to transactions laundering. And money Laundering. I am sure your organization
does not wish to be party to such serious international crime. As Bankers I am sure you
are aware of the serious consequences of trying to launder transactions and sanitize
illegal transactions. The risk involved is not worth it as Finance Bank Zambia and their
Swiss Partners have concluded.
24 - 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.
25 - 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.
26 - 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 an ENG subsidiary. The audited shareholder register of Century/CFX Bank as
at 31 December 2003 and 12 May 2004 will confirm this material fact.
27 - 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 has remained a mystery even though we have
reliable information as to the probable ultimate beneficiaries.
28 - Within a week of this sale 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.
29 - 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.
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. 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.
This matter is well documented and for easy of reference please refer to the following websites which have been specifically created to document this ownership dispute
(a) – www.cfxbank.com
(b) – www.cfxbank.blogspot.com
Given the above it is clear Interfin should not interpose itself in an ongoing
ownership dispute which has been in the courts for the last 5 years. Should it be necessary measures are already underway to create another website to deal with Interfin and document .
For the sake of transparency I am copying this letter to the following ;
Minister of Finance Zimbabwe – Hon T.L Biti
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[1]
http://www.facebook.com/muponda[2]
Skype ID gilbert.muponda
Monday, November 2, 2009
Interfin warned hands off CFX Bank
OUR REF: OCG/pmd/2
OUR REF: OCG/pmd/2
Monday, November 2, 2009
The Managing Director
Interfin Holdings Limited
15th Floor, NSSA Building
Cnr Sam Nujoma St/Julius Nyerere Way
HARARE
Attention: Mr. R. Njanike
Dear Mr. Njanike
Re: OUR CLIENT ENG CAPITAL (PVT) LTD: INTEREST IN CFX FINANCIAL SERVICES LIMITED
Mr. Gilbert Muponda, the Managing Director of ENG Capital (Pvt) Ltd has mandated us to write to you. Kindly note our interest.
We recently learnt, through some local media reports, that Interfin Holdings Limited is now firm favourate to acquire a controlling stake in CFX Financial Services Limited ahead of the Finance Bank of Zambia. We are of the humble view that your company should formally be made aware of our client's proprietary interest in the shareholding of CFX Financial Services Ltd. For your convenience, therefore, we forward herewith copies of the following documents:
a) our letter dated October 19, 2009 addressed to the Company Secretary at CFX Financial Services Limited;
b) our letter dated October 27, 2009 addressed to the Minister of Finance;
c) our client's letter dated August 10, 2009 addressed to the Minister of Finance; and
d) letter dated October 29, 2009 addressed to ourselves by Messrs. Kantor & Immerman.
Kindly note that our client's main bond of contention is the argument that CFX Financial Services Limited took over Century Bank which belonged to ENG Capital (Pvt) Ltd. Whether or not ENG Capital (Pvt) Ltd is operational is not relevant at this juncture. What is relevant is the fact that Century Bank was owned by ENG Capital (Pvt) Ltd at the time that it was acquired by CFX Financial Services Limited. Put alternatively, it is incumbent upon CFX Financial Services Limited to provide a clear audit trail of how it acquired Century Bank. Thus, the issue of the 309 million shares that were held by our client in Century Bank becomes pertinent. Who purchased these shares and at what price? Why were the shares sold at a special bargain price? At the end of the day, who was the real beneficiary of this particular transaction?
As you may be aware of, Mr. Gilbert Muponda is still a specified person although measures are presently being taken to have him de-specified. We are firmly convinced that our client's specification was part of a grand plan to unlawfully dis-possess him of his 309 million shares in Century Bank. Assuming for one moment that the said shares were sold by the curator for the purpose of allegedly paying off ENG Capital (Pvt) Ltd's creditors and depositors; then a detailed disclosure of this payment plan should be made available. To date, this has not been done thus raising more questions than answers.
We trust that the information that we have availed to your company will assist in helping you make an appropriate decision concerning the reported interest by your company in CFX Financial Services Limited.
Yours faithfully
SENATOR O.C. GUTU
GUTU & CHIKOWERO
cc client
cc The Managing Director
CFX Financial Services Limited
Attention: Mr. Emmanuel Tagarira
(This is for your information.)
cc Messrs. Kantor & Immerman
Attention: Mr. A.B. C. Chinake
cc Minister of Finance
cc Governor
Reserve Bank of Zimbabwe
Sunday, November 1, 2009
CFX and Zambia Bank deal collapses
INTERFIN Holdings is now firm favourite to acquire a controlling stake in CFX Financial Services ahead of the Finance Bank of Zambia.The Finance Bank Zambia deal collapsed after exiled businessman Gilbert Muponda advised the Zambian Bank about his claim on CFX Bank which he claims was illegally snatched from him.
Sources with knowledge of the deal said Interfin will also underwrite the financial institution’s forthcoming rights offer.
CFX recently announced it was seeking to raise US$10 million through a rights offer to recapitalise the group’s banking arm in line with the Reserve Bank of Zimbabwe prescribed minimum capital requirements.
The latest development now supports market speculation that the three month-long talks between CFX and the Zambian bank have collapsed.
FBZ and CFX were locked in negotiations that could have resulted in the former taking over 51 percent of the local financial institution.
The talks seem to have taken too long for CFX considering the local financial institution’s desperate need to raise money to meet the Reserve Bank of Zimbabwe’s prescribed minimum capital requirements.
"The deal is signed and it has to be approved by the shareholders when they meet during an extra-ordinary general meeting," said one source.
CFX managing director Mr Emmanuel Tagarira could neither confirm nor deny the deal saying he will make the necessary announcement at the right time.
Efforts to get a comment from Interfin directors proved fruitless.
Meanwhile, CFX has written to exiled businessman Gilbert Muponda seeking to be furnished with details regarding the legal status of ENG Capital.
This follows threats by Muponda, through his lawyers Gutu and Chikowero Attorneys to take legal action if the CFX proceeds with its EGM.
Muponda argued he would suffer "irreparable financial prejudice in the event that the EGM scheduled for November 12 goes ahead before the matter pertaining to the proprietary interests of EGM Capital (Pvt) Ltd is resolved to the satisfaction of all interested stakeholders".
Muponda, claims his Century shares were fraudulently converted into CFX after the closure of Century.
CFX — through its lawyers Kantor and Immerman — has responded asking Muponda’s lawyers to indicate whether ENG was liquidated or was operational.
And in the event ENG is operational, the CFX lawyers have asked for a full list of the current directors, supported by a CR 14 filed with the Registrar of Companies and full details of the shareholders of ENG.
Reliable sources revealed that the delays in the conclusion of the deal between CFX and FBZ and its subsequent "collapse" had to do with Muponda’s threats.
Sources said FBZ, which was backed by Swiss Reinsurance, the world’s second largest reinsurer was on the verge of releasing the funds, which were to be deposited into a Barclays Bank account before utilisation.
But it made a sudden U-turn after Muponda wrote to FBZ that their proposed investment in CFX was subject to an ongoing dispute.
He said: "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."
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