ENG Capital Holdings Limited Public Notice

Due to the liquidity crunch and financial crisis of 2003 and 2004 which affected the whole Zimbabwe financial market ENG Capital and many other financial services firms were negatively affected.

1- On 18 February 2004 The High Court of Zimbabwe at Harare Case HC 145-04 and 244-04 was granted placing ENG Capital Investment P/L and ENG Asset Management P/L into voluntary liquidation as a way to secure the firms’ Creditors. This action did not affect or include ENG Capital Holdings Limited which was the main holding Company.



2- ENG cleared all debts after the liquidation of the company its subsidiaries above. Some of the assets in excess of the claims made were returned to the Shareholders, Contributories and Directors. This has been confirmed by the liquidator, Mr. Reggie Saruchera, Managing Partner of Grant Thornton Calmesa. Further, we have copies of the High Court papers declaring that all the ENG’s past and present and future debts have been fully paid which are available for inspection at the High Court in Harare.



3- The final liquidation and distribution account was approved by the Master of High Court after it had laid for inspection without any objections. The record finished laying for inspection on 31 October 2008. Master of High Court issued the relevant documents confirming all debts had been cleared.



4- A notice in terms of Companies Act section 281 was published in the Zimbabwean Government Gazette. After the approval by the Master of High Court the liquidator handed back an operational company known as Allied Conveyors P/L to ENG Investments P/L Shareholders and Directors since it was excess to requirements to meet creditor claims. This confirmed that ENG Capital Investments was solvent and met all its obligations.



5- On 15 July 2010 The High court of Zimbabwe at Harare High Court Case HC -6086-09 confirmed that ENG Capital and its directors had “satisfactorily liquidated all debts past, present and future accumulated by the Company.”



6- The High Court Case HC 6086-09 also ordered the return of the following vehicles to ENG Capital Shareholders, Directors and Contributories ;

- Mitsubishi RVR – Registration – 792 -035 G

- Mercedes Benz C 320 Registration – 793 – 699 H

- Mercedes C 180 Registration - 778 – 980 R

- BMW Z 3 Registration – 740 372 B




ENG Capital Limited has engaged the Regulatory Authorities on the way forward to resume its business in Zimbabwe building on the excess assets which were returned to the Directors and Shareholders. A leading Zimbabwe Bank has been appointed Lead Financial Advisors to handle the proposed listing of ENG on the Zimbabwe Stock Exchange in line with commitments being made to Regulatory Authorities to broaden ENG shareholder base.

ENG Capital Limited Directors, Shareholders and Contributories would like to thank all regulatory Authorities who assisted in the process particularly Ministry of Finance , the Attorney General’s Office, the High Court, Zimbabwe Stock Exchange, Ministry of Justice ,Ministry of Home Affairs (Co-Ministers) and Reserve Bank of Zimbabwe.

25 April 2011
ENG Capital Holdings Limited - Directors, Shareholders and Contributories
Website ; www.engcapital.ca SKYPE ID – eng.capital

ENG CAPITAL PRESS STATEMENT by AAG National Executive Committee

The National Executive Committee (NEC), the supreme decision making body of the Affirmative Action Group is currently seized with the matters relating to the ENG Capital and its subsidiary companies. To date we have ascertained that ENG , through liqudation, has fully amortized all its financial debts.

This has been confirmed by the liquidator, Mr. Reggie Saruchera, Managing Partner of Grant Thornton Calmesa in a communication to AAG. Further, we have copy of the High Court papers declaring that all the ENG’s past and present and future debts have been fully paid.

It is our hope that, if all ENG outstanding issues have been settled, the bank must be allowed to resume operations. ENG has committed to AAG that they would want to, as soon as they get all requisite authorizations, set up a Youth Empowerment Fund that will help to kick start the businesses of many young indigenous men and women.

AAG is grateful to the authorities for the de-specification of several leading black business people and the reissuance of their banking licenses. As the country now prosecutes the revolutionary black economic empowerment agenda, we urge all Zimbabweans in the Diaspora to come back and participate in this historical exercise.
Tafadzwa Musarara
Secretary General
0774508079
ENDS///

Zimbabwe cant afford the ban on used car imports

Zimbabwe’s economic and financial situation cant afford the ban on used car imports which is due to become effective at the end of June 2011.Whilst theoretically the idea seem noble and with good intentions the country is suffering from severe liquidity crisis and very low salaries with some workers reportedly earning as little as $ 150 per month. This makes it impossible for such an employee to ever save enough money to ever buy a car with new cars priced from around $ 20,000.

In Africa and Zimbabwe generally a car is a very important asset which every family should be in position to acquire. This is mostly to do with the unreliable public transport systems .Particularly the transport system to visit the rural areas in many cases requires cars and the new regulations just about makes it very difficult for many families to be able to buy a car.

The main theory advanced is that the imports are hurting local car industry which is also based on imports given that Zimbabwe does now have an indigenous car making company. This argument of trying to protect few big importers of new cars or car kits is ruinous in that it condemns thousands of other individuals who have been importing cars over the years and these cars including commuter omnibus minibuses have served the country’s needs at an affordable price.

The second theory that imported reconditioned cars are past their life since they would have been fully depreciated in accounting terms totally misses the point. There is a huge and material difference between a car’s accounting life (book value) and its economic value according to its Net Present Value (NPV) derived from its discounted cashflows (DCF) based in cash generated or cash saved through the use of the car over its usable life. Under most accounting systems a car would have a maximum life of about 5 years which is just a quarter of its economic life of 20 years (the period most cars are in usable condition).

It is therefore very unrealistic and short-sighted to ban imports of cars just basing the decision on one variable i.e the accounting life of the car. This totally ignores its economic life which is more practical and more important particularly given how Africans and Zimbabweans have become very resourceful in extending car lives given the general resource shortage.

In many advanced countries cars are on the road well into 20 years after first year as new. The financing systems are in place which allow people to replace cars more often as this is a very well supported industry. People are given incentives to replace their cars sooner because these countries can afford it plus this acts as stimulus for their car industries. This explains why the governments of Canada and USA took bold steps to save General Motors and Chrysler ,this was to protect the industry.

In Zimbabwe’s case that industry is actually stronger on the importing and repair side and as such the Goverment policy should be loosening import constraints to allow more cars to be imported.This will reduce car prices and allow people to replace their cars sooner and slowly eliminate the much older and dangerous cars off the road as recent imports will be cheaper and available.The proposed ban is therefore a step in the wrong direction in terms of solving old car and dangerous car problem on Zimbabwe’s roads.

The Government Gazette on April 1 2011 of Statutory Instrument 44 of 2011 (2) section 1 (2) ("Title and date of commencement of the Road Traffic (construction, equipment and use) Regulations, 2010, published in Statutory Instrument 154 of 2010 as amended by the deletion of 1st of December, 2010"), and the substitution of 1st of July, 2011.

Government in September last year gazetted Statutory Instrument 154 of 2010 (Road Traffic Construction), which provided that vehicles that have been on the road for at least five years would not be allowed to enter the country after March 31 this year.

The statutory instrument says in part: "No person shall import any vehicle for registration and use on any road in Zimbabwe if the year of manufacture from the country of origin is more than five years. Provided that this shall not apply to any motor vehicle registered in Zimbabwe before the 31st of March, 2011."

The statutory instrument also stipulates that left-hand drive vehicles would not be registered after March 31 2011 and would be banned from Zimbabwean roads by December 31 2015. Left-hand drive vehicles are considered technically unsuitable for Zimbabwe's roads. The ban, which was initially set for March 31 this year before being extended to June 30 is now set to be effected end of June this year.

For a country which does not have a solid and reliable public sector transportation system the availability of cheap ,imported cars is necessary especially to assist small start up businesses. This sector is based on being able to improvise and being resourceful and having a small run about car is one of those “must have” for a small business still starting out.

The move to ban imports is therefore undesirable and counter productive in terms of making it very difficult for start ups to acquire cars which they require for day to day running of a business. It is interesting to note that business lobby groups such as CZI ,AAG and civil organizations such as ZCTU and ZIMTA have been rather silent over the issue even though their members will be affected by the ban.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital www.gmricapital.com

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www.engcapital.ca

ENG Capital paid past,present & future debts HC 6086-09

On 15 July 2010 High Court Judge ruled ENG Capital Investments and its directors have paid all past,present and future debts accumulated by the Company and ordered return of excess assets.

ENG Capital - Final Accounts - All Claims settled As perZim GVT Gazette

All Dividend distributions to ENG Capital investments claims and creditors with final Distribution Account - All Claims settled excess assets returned to Directors,Shareholders and Contributories.Official record as per Zimbabwe Government Gazette.