Gilbert Muponda

Interfin Banking Corporation producuct of illegal transaction

2011-07-01T23:31:00.002-04:00

OUR REF: BC/pmd/44

Monday September 27, 2010

The Managing Director
Interfin Holdings (Pvt) Ltd
15th Floor, NSSA Building
Cnr Sam Nujoma St/Julius Nyerere Way
HARARE

Attention: Mr. R. Njanike

Dear Mr. Njanike

Re: GILBERT FARAI MUPONDA and ENG CAPITAL (PVT) LTD: INTEREST IN CFX FINANCIAL SERVICES (PVT) LTD

We refer to our letter dated August 27, 2010 as well as to other previous correspondence in this matter.

We confirm that our client right from the outset, has been challenging the manner in which ENG Capital (Pvt) Ltd’s shares in Century Bank were disposed of by the liquidator, Mr. R. Saruchera. In fact, our client challenged the transfer of the shares through High Court case No. H.C. 6244/04. His co-director, Mr. Nyasha Watyoka supported this court application. The main thrust of this court application was to block the sale and/or transfer of our client’s shares. Our client owned 309 million shares in Century Bank Limited. With respect, therefore, the assumption that our client does not have a legitimate claim is clearly misplaced. Please note that case number H.C. 6244/04, that was filed in the High Court at Harare in late May 2004 by our client’s then lawyer, the late Mr. Oscar Ziweni, is still pending. For your information and records, herewith we forward a copy of the full court application under case number H.C. 6244/04. Our understanding is that Century Holdings has since been effectively taken over by Interfin Holdings Limited. Further, we understand that Interfin Holdings (Pvt) Ltd assumed all the assets and liabilities of the Century Holdings Limited when they took over CFX Bank which itself had taken over the original Century Bank.

When Mr. Oscar Ziweni passed on, our client was left with no legal representation at that stage and around the same time, he was specified. Fearing for his life, our client had no option but to flee Zimbabwe. Mr. Ziweni died in a very mysterious circumstance and our client had every reason to fear that his own life was also in danger. This is the main reason why he fled Zimbabwe.

The process to have our client de-specified has since been set in motion and we are very confident that within the next few weeks, he will be formally de-specified.

You can be assured that our client will take this matter up with the courts in Zimbabwe as soon as he is formally de-specified.

Yours faithfully

B. CHIKOWERO (MR)
GUTU & CHIKOWERO

cc client

Zimbabwe indigenization Program must aim at creating new wealth

2011-06-26T00:52:00.002-04:00

Zimbabwe’s much publicised indigenization and economic empowerment program must aim at creating new wealth .The real solution is to grow the economy and in the process generate new wealth which in the process creates jobs and brings national prosperity.

Zimbabwe’s broad based black economic empowerment must not merely focus on correcting historical wrongs. It should be refined and become a pragmatic growth strategy that aims to realise the country's full economic potential while helping to bring the black majority into the economic mainstream which further creates a market for enterprises. The program must clearly identify individuals with potential who can be supported to build enterprises and businesses from scratch and create new wealth and jobs. The over focus on re-distributing current wealth only serves to bring disrepute to an otherwise very noble and necessary program.

There are several practical steps which need to be developed and followed to ensure the program becomes a resounding success which include skills development and access to Entrepreneurial infrastructure. The ownership, management, socioeconomic development and preferential procurement are critical areas of broad based economic empowerment program which need to be clarified and developed to ensure the program’s success without disrupting established businesses which are already employing thousand of people and contributing to the Treasury through corporate and income tax.

The rules of engagement of the Broad based Economic empowerment program must be well laid out in advance for all investors to understand. If done hap-hazardly the economy shrinks and more people go hungry because investors flee and the skills that we need also flee, we see that what we have inherited has turned to ash. A credible empowerment program must be aimed to ensure broader and meaningful participation in the economy by indigenous people to achieve sustainable development and national economic security.

In light of Globalization and dominance of Foreign Direct Investment and Sovereign Wealth Funds in distribution of capital it is imperative for the economic empowerment to be done within the confines of the law. Admittedly Zimbabwe has several attractive features such as mineral resources, educated labour force ,excellent weather etc but investors have multiple other potential investment destinations.

This means Zimbabwe still has to be competitive in attracting FDI and the economic empowerment program implementation needs to take into account international trends and internationally acceptable practices on dealing with empowerment matters. Zimbabwe and Zimbabweans should shun being associated with grabbing other peoples businesses or assets but should rather develop a reputation as being welcoming to investors who will help in creation of new wealth.The focus should be on creating wealth and not grabbing, seizing or looting.

It has been correctly noted that direct intervention in the distribution of assets and opportunities was needed to resolve the economic disparities created by historical colonial policies which had favoured white business owners and citizens at the expense of everyone else regardless of their education, skills or ambition . The World over BEE is intended to transform the economy to be representative of the demographics, specifically race demographics of the country in particular its racial make up must be reflected reasonably in the ownership of resources and access to opportunities.

There is need to avoid victimizing one section on the population even though it may have been a beneficiary of past ill-thought out and discriminatory policies of the past.

It has been observed and universally accepted that "Societies characterised by entrenched gender inequality or racially or ethnically defined wealth disparities are not likely to be socially and politically stable, particularly as economic growth can easily exacerbate these inequalities." Thus broad based economic empowerment initiative is a necessary and critical program which should be carried out in a transparent and accountable manner for the benefit of broad sections of society which were previously systematically excluded from the Economy.

Disclaimer

Prepared by GMRI Capital (www.gmricapital.com) for 3MG MEDIA (www.3mgmedia.ca). At GMRI Capital, we pride ourselves on the quality and depth of our research and analysis. This means digging deeper than our competition for information and generating more useful reports.

This article is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

Contact Email ; gilbert@gmricapital.com

Face book ; http://www.facebook.com/GMRICAPITAL

Skype ; gilbert.muponda

Website ; www.gmricapital.com

Gilbert Muponda cleared by Interpol

2011-06-22T22:15:00.002-04:00

CANADA – EXILED businessman and ENG Capital director Mr Gilbert Muponda has been cleared by the International Police Organisation and has been removed from the list of international fugitives. Muponda was issued with a clearance certificate through his Canadian lawyers, SVN law firm.

A letter written by the Interpol secretariat to Mr Muponda’s lawyer Mr Sunny Nnamdi Vincent reads: “The procedure in our letter dated 6 December, 2010 has been applied to the process of your request.
“We would like to inform you that the information concerning Mr Muponda communicated by Zimbabwe has been deleted from Interpol General Secretariat Files.”

Mr Muponda was put on the Interpol files after he skipped bail in 2004 when he was facing, together with ENG co-director, Nyasha Watyoka fraud allegations. He was issued with a warrant of arrest after he skipped bail.

The courts cleared the ENG directors in 2008 after it ruled that the case against them should proceed by way of summons.

Mr Muponda was also cleared while some of their assets were returned by a High Court ruling after ENG Capital that had been placed under voluntary liquidation cleared its debt.

He was de-specified two months ago. In a statement yesterday, Muponda, who is also challenging the acquisition of his shares in CFX Bank by Interfin Holdings welcomed the clearance by Interpol.

“The clearance certificate was issued to my Canadian lawyers SVN Law Office after they made an application based on the given facts that I was actually the victim who lost assets such as CFX Bank and my personal house 17 Chishawasha Road, Umwinsdale.

“All these assets were irregularly sold and investigations by Interpol confirmed that I was a victim and did not deserve to be on the list but rather deserved help and protection and assistance in recovering my assets which I am seeking to recover in particular CFX Bank,” he said.

He said the fact that various authorities had cleared him proved his innocence. “I have been cleared by Anti-Corruption Commission, the Home Affairs Ministry de-specified me recently and also the High Court of Zimbabwe confirmed my innocence and returned some of our assets.

“This clearance by a professional and respected organisation like Interpol totally confirms my innocence and I look forward to the return of my Bank CFX and its re-licencing,” Mr Muponda said.

Cautionary Statement - Trade in Interfin Banking Corporation Holdings Limited Shares

2011-06-10T22:12:00.002-04:00

Dear Members of the Zimbabwe Stock Brokers Community,

I have well known ongoing dispute with Interfin Financial Holdings Limited.This ownership dispute is with regards to the Interfin's merger with CFX Bank and stripping CFX Bank Assets and then devise a fraudulent scheme to hide the stripping by Liquidating the CFX Bank shell. This has never happened anywhere in the world to capitalize a Bank,then merge with the Bank only to Liquidate it a few months later .

It shows there is something being hidden.Stock brokers must ask what is it thats being hidden..This is an attempt to escape paying $ 15.4 million which me and other ENG Capital contributories are claiming from Interfin on the strength of High court case HC 6244-04.Interfin took over CFX Bank despite clear advisory letters from my lawyers Gutu and Chikowero Attorneys At Law .Earlier Finance Bank of Zambia and Credit Suisse tried to buy CFX Bank but stopped when we advised them of our claim.They did their own due diligence and verifed the nature of our claim and were convinced of its legitimacy and they pulled out of the transaction.

However Interfin decided to ignore our advice and warning and proceeded to take over CFX Bank ,assets and liabilities.We have tried to avoid a public or prolonged dispute with Interfin by trying to talk to their Senior Directors,But this has been continously rebuffed.Interfin`s prior defence all along has been that I am specified and as such I have no legal rights.Now that I have been specified it goes withotu saying that Interfin should be aware of the natural steps which should follow.

As you maybe aware I was recently cleared of any wrong doing by the high court on 15 July 2010.In addition the Government of Zimbabwe has formally cleared me of any wrong doing.This has been confirmed by my De-specification by Co-Home Affairs Ministers Theresa Makone and Hon Kembo Mohadi on 29 April 2011.This has legally restored my rights and I filed a Notice of Opposition to the Proposed liquidation of CFX Bank on 17 May 2011.

The Notice was Served on Interfin and CFX Bank and Master of High Court.Essentially this action is the first step towards enforcing our claim of $ 15.4 million against Interfin or alternatively seek the reversal of the merger between Interfin and CFX Bank and remove any and all CFX Bank assets from Interfin or alternatively seek to convert the my claim into Interfin Equity.

Under normal circumstances Interfin Financial Holdings should have issued a cautionary statement to advise its shareholders of the legal action because it has a material impact on the Company`s position.However Interfin management has not done so and seem not to be in a hurry to do so.As members of the Stockbrokers community it is your responsibility to accurately and honestly advise the investing public on the Company`s prospects in face of this Notice of opposition.As Professional courtesy since I regard myself as a member of the Zimbabwe Investment Community I feel I have a fiduciary duty to alert fellow members of the Zimbabwe investment community of such a serious development.

I have attached Affidavit for HC 6244-04 and Affidavit opposing the CFX Bank liquidation for your records.Please feel free to contact either myself or my lawyers Gutu and Chikowero Attorneys at Law for any clarification.

Please be guided accordingly.

--
Gilbert Muponda,
Phone - 1-647-994-5542
http://www.facebook.com/gmricapital
http://twitter.com/engcapital
www.engcapital.ca

Zimbabwe Sovereign Wealth Fund necessary for future generations.

2011-06-05T13:42:00.001-04:00

The discovery of massive diamond reserves in Eastern Zimbabwe has created an economic windfall which should be managed properly for future generations to benefit. Zimbabwe has various other resources including Gold, Coal and platinum which is believed to be the second largest known reserve after South Africa. These resources a finite and can run out and as such the proceeds from these resources must be invested wisely in properly structured Institutions such as the Zimbabwe Sovereign Wealth Fund (ZSWF).

According to the Sovereign Wealth Fund Institute a Sovereign Wealth Fund (SWF) is defined as a state-owned investment fund composed of financial assets such as stocks, bonds, real estate, or other financial instruments funded by foreign exchange assets. Generally these assets include: balance of payments surpluses, official foreign currency operations, the proceeds of privatizations, fiscal surpluses, and/or receipts resulting from commodity exports. Sovereign Wealth Funds can be structured as a fund, pool, or corporation.

There are two major types of SWF funds: saving funds and stabilization funds. Stabilization SWFs are created to reduce the volatility of government revenues, to counter the boom-bust cycles' adverse effect on government spending and the national economy. Savings SWFs build up savings for future generations according to Wikipedia.

Traditionally SWF tend to prefer returns over liquidity, thus they have a higher risk tolerance than traditional foreign exchange reserves. This is in line with their goal to create long term value and build wealth for future generations who may not have the same mineral resources at their disposal.

In theory SWF have their origins in Commodities – funded through commodity exports, either taxed or owned by the government. And Non Commodities – Usually created via transfers of assets from official foreign exchange reserves. Zimbabwe’s Sovereign Wealth Fund would naturally be from commodities and exports of minerals and royalties from Diamonds ,Gold ,Platinum etc.

A few SWFs, such as the Government of Singapore Investment Corporation (GIC) and China Investment Corporation (CIC), invest wealth from fiscal surpluses or foreign currency reserves.

According to the Economist Magazine “The world’s largest sovereign-wealth fund belongs to the United Arab Emirates, whose Abu Dhabi Investment Authority manages assets worth $627 billion. No single Chinese fund is nearly as big: the chunkiest, the SAFE Investment Company, has holdings worth $347 billion. But taken together China’s sovereign funds are worth an estimated $831 billion, more than any other country’s holdings. Many of the biggest sovereign funds belong to oil exporters.”

Many emerging nations which have significant natural resources have turned to SWF as a way to broaden and deepen their capital markets. WF provide long term capital similar to what the National Social Security Authority (NSSA) has been able to do in Zimbabwe’s capital and money markets over the last decade. The ZSWF will have a critical role in ensuring that there are more deep pocketed Institutions in Zimbabwe with capacity to underwrite huge transactions whilst furthering national economic vision and goals.Some African countries as well such as Libya,Nigeria,Botswana and Mauritania have also developed and established SWFs.

SWF have historically been accused of being too secretive and lacking in transparency which the ZSWF should be structured to address and ensure it has the support of all stakeholders as it will be holding assets and resources on behalf of the nation including future generations. he fund structure should outline the Management composition, here and how funds can be invested.

Domestically, people want to know how their money is being invested, whereas internationally SWFs face challenges investing in companies that fear their motives may be politically driven. These are areas which need to be critically looked at before the ZSWF concept is fully implemented.

Disclaimer

Prepared by GMRI Capital (www.gmricapital.com) for 3MG MEDIA (www.3mgmedia.ca). At GMRI Capital, we pride ourselves on the quality and depth of our research and analysis. This means digging deeper than our competition for information and generating more useful reports.

This article is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

Contact Email ; gilbert@gmricapital.com
Face book ; http://www.facebook.com/GMRICAPITAL
Skype ; gilbert.muponda
Website ; www.gmricapital.com

Entrepreneurship should be formally included in Zimbabwe Education

2011-06-04T21:47:00.001-04:00

Developing nations including Zimbabwe face an uphill struggle to develop their economies relying on foreign Entrepreneurs and multinational corporations which usually are controlled and owned institutions which may or may not assist in building entrepreneurial infrastructure in host nations.

Whilst Foreign Direct Investment is a welcome source of investment and development emerging economics such as Zimbabwe need to take immediate and firm steps to develop local entrepreneurs from a very early age. Individuals shouldn’t become Entrepreneurs by fluke or by chance. There is need to put national efforts and resources to develop entrepreneurs from early in life.

Zimbabwe and other emerging market should welcome FDI but should ensure that local population do not remain perennial cheap labour providers without any hope of ever graduating into shareholders and business owners.

The providers of FDI should be pro-active and seek to use local suppliers wherever possible as a way to support local Entrepreneurs to slowly enter the entrepreneurship ladder. In the long run such relationships build long-term stability for all stake holders including the foreign investors.

Entrepreneurship like any essential life skill can be learnt, developed and refined and this is best done from a very early stages in life. The Educational system in Zimbabwe like many other emerging countries which were once colonized was modelled upon their colonizers and the majority of the population was trained and groomed towards being employees and not potential employers. Its true not everyone can be an employer but its also accurate to say everyone must be given an opportunity to be a potential employer at a very early age.

Considering how nations are forming into regional groups such as Ecowas ,EU,NAFTA, SADC etc, which are essentially economic and political groupings meant to retain all economic activity within members between members its imperative for nations like Zimbabwe to develop comprehensive entrepreneurial based education models which can develop globally competitive Entrepreneurs. The challenge to be Globally competitive should be part of a National Economic Vision which is driven by local Entrepreneurs who would have been trained and groomed from a very early age.

Training teenagers about Entrepreneurship from an early age will teach them proper values such as the need to think long term and seek to build wealth over a sustained period without resorting to asset grabbing or looting already established businesses only to run them into the ground. Youngsters have to be trained on the ethics and spirit required to build a solid business which can be passed from one generation to the next based on proper corporate structures and systems.

Disclaimer

Prepared by GMRI Capital (www.gmricapital.com) for 3MG MEDIA (www.3mgmedia.ca). At GMRI Capital, we pride ourselves on the quality and depth of our research and analysis. This means digging deeper than our competition for information and generating more useful reports.

This article is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

Contact Email ; gilbert@gmricapital.com
Face book ; http://www.facebook.com/GMRICAPITAL
Skype ; gilbert.muponda
Website ; www.gmricapital.com

The Original Zimbabwe Dollar Debate

2011-06-01T08:57:00.000-04:00

When the GNU suspended the Zimbabwe dollar more than 2 years ago GMRI Capital wrote an opinion article opposing the idea on a purely academic,financial and economic basis.It was never about political but based on Economic needs of the country.The debate has raged on 2 years down the line but now its heated and GMRI Capital is now in a difficult position to back up what appears to be a very unpopular idea.

At GMRI Capital we have written extensively about the conditions needed for the Zimbabwe dollar this can be confirmed via simple google search.One of the occupational risks of being a Research analyst and being part of a Think tank sometimes you have to go against popular public opinion.This is normal because the ideas and research you generate maybe be slightly ahead of its time but is actually the correct thing to do.This is especially correct about the currency implementation as it is highly emotionally for many people and there are lots of vested interests competing.

Currency implementation is a long drawn out process as such it requires a broad based debate which is critical in confidence building as all stakeholders must be consulted and feel they are part of the whole process.The addition of Gold to back any currency can not replace sound economic policies and the respect of the rule of law which are the cornerstone of any strong currency.

Below is the full article done by GMRI Capital 2 years ago.Its been re-produced from Zimeye.org where it was originally published.

Published: May 5, 2009

Comment

(Analysis)Zimbabwe recently announced the official suspension of the Zimbabwe dollar for at least one year .The reason cited was that the currency was worthless and there was nothing to back up it value. In the same announcement there were indications that the currency may be re-introduced once the economy reaches about 60% of its capacity. However a full analysis of what led to the Zimbabwe dollar collapse and how the economy can recover shows that suspending the Zimbabwe dollar was in fact not the right thing to do.

The Zimbabwe dollar should have been left in circulation alongside other major currencies . In terms of Economic recovery the currency suspension make sit harder for the economy to recover but politically it may have served another purpose for the various- in fighting parties in the inclusive Government. Therefore the currency suspension move was more of a political tactic meant to starve off funding to one section of the government instead of aiding the economic recovery process .

Zimbabwe’s inflation was not caused by having a local currency. It was caused by excessive printing of the Zimbabwe dollar. So inflation could have been tamed by simply stopping the excessive currency printing. This would have partially stabilized the Zimbabwe dollar even though it would have remained weak due to a precarious balance of payment position .

The argument provided was that the Zimbabwe dollar was worthless because it lacked something to back it up would only have been correct and accurate if Zimbabwe was sticking to the Gold standard . This practice, before World War I, had been to link it to the sum of bullion held by the treasury (the so-called ‘gold standard’). It meant the Governments can only print enough money backed by actual /real gold reserves they held. But this was long abandoned by most countries including the USA which dumped the Gold standard around 1973 adopting the ‘FIAT MONEY’ .

Fiat money is paper or otherwise money declared by a government to be legal tender making it an acceptable medium to settle debts. The name comes from the Latin language fiat, which means -let it be done. Fiat or paper currency achieves value because a government accepts it in payment of taxes and says it can be used within the country as a “tender” (offering) to pay all debts . For this basic reason the circulation of the Zimbabwe dollar would have allowed the smooth functioning of the Government whilst the economy stabilizes .

The valuation of any currency has numerous variables which impact of the currency’s value and exchange rate .The value of a currency is affected by exports, imports, foreign currency reserves, balance of payment position ,economic activity and many other factors .

The market value of asset such as money is largely a reflection of supply and demand for that asset. And thus, when looking at assessing the value of a currency, we should try to gauge the supply of and demand for that particular currency. This directly answers Zimbabwe’s decline and its possible route out of the decline.

The money must not be printed and injected into the financial system haz-hazardly. If a certain quantity is printed and circulated without further unreasonable additional printing then that currency can be used as a medium to transact and allow the Government to function normally.

The currency will most likely remain weak but will not collapse like the previous currency if excessive printing is avoided. Once this is done other measures such as attracting foreign direct investments, privatizations and public sector investment programmes can be used to help bring additional stability to the currency. Over time confidence and economic productivity will pick up providing the necessary support which will result in currency appreciation .

As it is the government is failing to pay most civil servants which is kind of a self made problem partly from the suspension of the Zimbabwe dollar . Zimbabwe government workers can be paid in Zimbabwe dollars which they can use to pay for services from other Zimbabwe Government owned entities such as ZESA, NRZ ,TEL-ONE and others. This way slowly the Government can function providing a stimulus for economic activity .

The is need to simplify money supply concept to clarify the points above, it is crucial to note that under current monetary policy, money is created out of debt. This happens in two ways:

Firstly money is created when governments need to borrow, and central banks then print money and sell treasury bills and at times long term bonds. The key here is to make sure the central bank is accountable for the money printed through parliament and Treasury. Ensure currency integrity by making sure there isn’t clandestine currency printing .

Secondly through the fractional reserve system the money supply is then expanded again when banks loan money; banks are allowed to loan out amounts beyond what they actually hold in deposits and shareholder equity ( this is controlled through statutory reserves – lower statutory reserves means the banks can create more money) the money they have in deposits, and thus expand the money supply when they loan.

In recent weeks the prices in Zimbabwe have stabilized ,with some reports that prices are going down in certain products and commodities. The price stabilization coincided with official dollarization which was followed by the suspension of the Zimbabwe dollar. Hyperinflation in 2007 and 2008 made Zimbabwe’s currency virtually worthless despite the introduction of bigger and bigger notes, including a 10 trillion dollar bill which is possibly a world record.

Prices have stabilized or fallen since the government legalized the use of other currencies including the U.S. dollar in January. Supplies have improved for basics this is mainly due to the fact that all businesses are now allowed to use any major currency. However the removal of the Zimbabwe dollar does not serve any particular purpose .Instead it makes the Government lose a vital tool and resource to deliver service and help kick start economic activity.

Whilst some rough guidelines have been set on when the currency suspension can be lifted its clear that the Government has tied its own hands and curtailed its capacity to restore critical services .Therefore the currency suspension must be lifted sooner rather than later and allow the Government to properly function and deliver service to the people of Zimbabwe. Obviously there is need to put adequate controls and restrictions to ensure that the people who were responsible for excessive currency printing may not get a second chance to ruin the currency again.

Gilbert Muponda is an Entrepreneur based in Canada. He is CEO of GMRI CAPITAL. He can be reached at;

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

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

(ZimEye, Zimbabwe)

Published: May 5, 2009 - link http://www.zimeye.org/?p=4451

COMPLAINT TO The South African Institute of Chartered Accountants (SAICA)

2011-05-27T18:22:00.001-04:00

The Chairman
ICAZ,
The South African Institute of Chartered Accountants (SAICA)
Capetown

27 May 2011

RE - CORRUPTION,FRAUD AND ABUSE OF OFFICE LETTER OF COMPLAINT TO The South African Institute of Chartered Accountants (SAICA)
AGAINST MR REGGIE SARUCHERA OF GRANT THORNTON CAMELSA ZIMBABWE

I would like to lodge an official complaint against a Member of The South African Institute of Chartered Accountants (SAICA) Mr Reggie Saruchera Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International on the corrupt and incompetent manner in which he handled the Liquidation of ENG Investments P/L. I would like the Institute of Chartered Accountants of Zimbabwe to investigate this and possibly review membership of Mr Saruchera and CAMELSA .I have reason to believe Mr Saruchera has violated The South African Institute of Chartered Accountants (SAICA) Charter and the Chartered Accountants Act under Zimbabwean law.

He conducted himself in a manner likely to bring the ICAZ into disrepute and make your esteemed organization subject to endless ridicule. It is my humble submission that Mr Saruchera’s membership of The South African Institute of Chartered Accountants (SAICA) be suspended pending the results of an investigation on his fraud, corruption and general dishonesty given how he scandalously handled the liquidation of ENG assets and abused his office by misleading the Minister of Justice to Specify me for 7 years only to be found innocent after all my assets had been stripped by Mr Saruchera.

A - Just to highlight his incompetence he sold my personal house number 17 Chishawasha Road, Chishawasha Hills, Umwinsdale Harare when he didn’t have Authority and whilst leaving Company assets which he later said were in excess to liabilities. If he was honest and competent he should have self Company assets first and if there was a shortfall he could then have gone after personal assets. But due to his corrupt nature ,incompetence and vindictiveness he chose to make me homeless by selling my home and residence leaving me homeless.

B - In addition Mr Reggie Saruchera Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International is at the centre of my dispute with Interfin Banking Corporation due to his corrupt and incompetent handling of the ENG liquidation. In particular his disposal of 309 million Century Holdings shares which we bought for Z$ 35 billion (then equivalent to approximately US $ 17.5 million ) and selling those shares for Z$ 2.9 billion ( then approximately equivalent to US $ 1,5 million).He sold the shares creating a loss of Z$ 32 billion (approximately $ US 16 million).This transaction had all hallmarks of corruption, insider trading and incompetence all rolled into one which forced me to initiate high court action HC 6244-04 . I have attached a copy of HC -6244 -04 which fully describes the fraud and corruption engineered by Mr Saruchera. This is totally unbecoming for a Chartered Accountant to be so blatantly corrupt and fraudulent when he had a fiduciary duty to protect all stakeholder interest. He totally ignored this duty and embarked on mission to line his pockets and in unjust self enrichment schemes selling assets at under priced levels to his relatives, friends and cronies.

Brief Back Ground
In late 2003 my business partner and myself were arrested on allegations of economic crimes which we were later cleared of resulting in my De-specification on 29 April 2011. In order for us get bail we secured the creditors by placing ENG Capital under voluntary liquidation. We and First Mutual Life the biggest creditors agreed on Mr Reggie Saruchera who was to protect our Interest and those interests of the creditors .A consent order was granted on the proviso that he was supposed to work in consultation with all stakeholders since he had been appointed with our consent under High court cases HC 244-04 and HC 145 - 04.

Mr Saruchera as a member of The South African Institute of Chartered Accountants (SAICA) had a fiduciary responsibility to act prudently, honestly and diligently. We all assumed that being a Chartered Accountant accredited to Institute of Accountants of Zimbabwe ( ICAZ) Mr Saruchera would act competently, professionally and reasonably. We were very disappointed by his level of incompetence, unprofessionalism ,unreasonableness and general corrupt conduct on how he handled the ENG Capital Investments liquidation.

In the first instance Mr Saruchera started by selling off ENG Assets before even verifying the Company’s liabilities and assets. He did not even construct a basic Trial Balance to guide the process and he started to sell assets hap-hazardly in a corrupt manner least expected of a man who claims to be a Chartered Accountant under the Institute of Chartered Accountants of Zimbabwe. Even an inexperienced book keeper would know that before selling assets you need to secure them and verify all claims before deciding what to sell and at what price.

1 - He sold assets which he didn’t have authority or permission to sell. We suspect he was getting kick backs from his connections who were getting these assets at completely unrealistic prices.

2 - He sold our personal assets even though he had not exhausted Company assets which he later on surrendered saying they were in excess to creditor requirements.

3 - He was cherrying picking our personal assets motivated by greedy, corruption and envy and selling these asset to his select connections whom we suspect were his friends, relatives and business associates.It appears his friends, relatives and business associates were directing him which assets to sell and at what price totally ignoring his fiduciary duties.

4 - For Example he sold my house number 17 Chishawasha Road ,Chishawasha to someone we have reason to believe is his close friend or relative yet he returned Allied Conveyors P/L and other assets to ENG Directors .Why would he sell my personal house leaving me homeless when he could have sold movable assets such as Allied Conveyors. Such actions only prove his corrupt and incompetent conduct which is totally unbecoming of a man who is supposed to be a Chartered Accountant in good standing with ICAZ.

5 - Once Mr Saruchera Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International was appointed Liquidator he took a very hostile and aggressive attitude towards us even though we had appointed him by consent to protect all stake holders. We agreed that the best way was to negotiate share swaps with creditors and give them shares which we owned in various companies instead of selling the shares because the share market was depressed. Our biggest creditor FML and others had agreed to get shares instead of cash in particular our shares in Century Bank were bought at a cost of $ 35 billion and were valued even higher since they were a controlling stake in a Bank

6 - We heard Rumours that Century Shares were being sold and we asked Mr Saruchera who initially denied the rumour. After a few days we then read in the newspaper that Mr Saruchera had sold 309 million CENTURY shares .Our lawyer then wrote to him seeking clarification on why he had sold the shares since he did not have permission to sell the shares and also since Creditors had agreed to receive shares instead of cash payments. We wrote to ZSE and to Fidelity asking for identity of buyer and seeking investigation because we suspected Mr Saruchera acted corruptly to sell the shares at 2,9 billion when we had bough the shares for $ 35 billion ( US17 $ million) (causing a loss of $ 32 billion or US $ 16 million).He sold them through a special bargain which showed he had a side deal already since he was supposed to sell the shares thru normal market deal which sells to the highest bidder.

7 - Special Bargains are pure symptoms of corruption and kick backs especially when assets are supposed to be sold to the highest bidder to ensure that Creditors are fully paid and any surplus goes to the

8 - Our lawyers asked the ZSE to stop the deal and investigate. This was ignored. We then started legal proceedings of High court case HC 6244-04 Seeking to stop the sale of the shares and remove Saruchera from office. Once Saruchera saw our court action he then could not defend his decision which was clearly corrupt and unjustifiable by selling something bought for $35 billion for $ 2.9 billion. He started to intimidate us with specification threats and also verbally saying he had full powers from "authorities" to deal with us as harshly as he wanted.

9 - After we filed the motion to remove Saruchera from office and stop the sale of the shares Saruchera then applied to the Minister of Justice for myself ,my business partner Nyasha Watyoka and our Lawyer to be specified. We were all specified and Saruchera appointed Investigator. Saruchera then became Liquidator and Investigator at the same time placing him in position of conflict of interest. As a Chartered Accountant governed by the Institute of Chartered Accountants he ought to have known such a position was bound to create a corrupt outcome and bring the accountant proffession into ridicule and disrepute.

10 - Mr Saruchera was selling assets which he was supposed to investigate even though there was already court application HC 6244-04 to stop the sales and remove him from office. There was conflict of interest with liquidator being investigator he became the Police, Prosecutor, Witness and Judge all rolled into one creating a situation without any check as to the fairness of the work he was doing.

11 - Various laws and regulations were violated in the process of disposing our shares in the Bank .There was a general cloud of corruption, insider dealing ,incompetence which I outlined in my High court application Case HC 6244-04 seeking to remove Mr Saruchera from office as Liquidator since he had started by selling our assets without even verifying how much we owed to the creditors as is required by the law and general good corporate governance practice

12 - My lawyer then told me I was not safe since he had information that there were people who were prepared to eliminate me so that they can have full access to the ENG assets which I was resisting through court action. In fear I then fled Zimbabwe and tried to clear my name and clarify the ENG position.

13 - Mr Saruchera then continued to sell assets and he even sold my personal house number 17 Chishawasha Road, Chishawasha this (left me homeless) even though he had not finished selling ENG assets he took my personal house whilst leaving ENG assets such as Allied Conveyors which he later returned but he sold my house instead of ENG assets showing he was being ,malicious ,vindictive and corrupt as I suspect most assets were being sold to his connections .

14 - The bank was sold even though there was a court application HC 6244-04 to block it. Interfin and many other buyers before them were buying an asset that was already disputed. They failed to do their proper due diligence to verify the ownership dispute. They inherited Century/CFX bank and took over its assets and liabilities which included our claim. This is the nature of my dispute with Interfin Bank.

15 - Interfin Bank have always known the illegal and corrupt nature surrounding the sale of those shares and assumed all risk linked to these shares and that Financial Institution which is well known.

My court claim HC 6244-04 filed at the is well known and was well publicised such that when the Finance Bank of Zambia and Credit Suisse of Switzerland attempted to buy CFX Bank I told them about my claim and they did their own checks and verified the legitimacy of the claim. They stopped the transaction since my claim was proved to be legitimate. This proved Mr Saruchera had acted improperly since a reputable organization did their own due diligence and ascertained my claim and my main allegation that Mr Saruchera acted fraudulently, corruptly and devised an unjust self enrichment scheme.

It goes without saying that all other clients of Mr Saruchera and Camelsa Grant Thornton will also be fleeced and ripped of by this man who is masquerading as a chartered accountant.

Yours Sincerely ,

Gilbert Muponda
Contact
Phone - 1-647-994-5542
Email - gilbert@gmricapital.com
Face Book - http://www.facebook.com/GMRICAPITAL

LETTER OF COMPLAINT TO GRANT THORNTON INTERNATIONAL AGAINST MR REGGIE SARUCHERA OF GRANT THORNTON CAMELSA ZIMBABWE

2011-05-27T14:43:00.000-04:00

Grant Thornton
Grant Thornton International
National Toronto
12th Floor
50 Bay Street
Toronto, ON, M5J 2Z8

RE - LETTER OF COMPLAINT TO GRANT THORNTON INTERNATIONAL AGAINST MR REGGIE SARUCHERA OF GRANT THORNTON CAMELSA ZIMBABWE

I would like to lodge an official complaint against Mr Reggie Saruchera Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International on the corrupt and incompetent manner in which he handled the Liquidation of ENG Investments P/L. I would like Grant Thornton International to investigate this and possibly review its relationship with Mr Saruchera and CAMELSA especially in view I am finalizing legal action against Mr Saruchera and CAMELSA which will enjoin Grant Thornton International as the main entity supporting Mr Saruchera and his discredited operation .

A - Just to highlight his incompetence he sold my personal house number 17 Chishawasha Road, Chishawasha Hills, Umwinsdale Harare when he didn’t have Authority and whilst leaving Company assets which he later said were in excess to liabilities. If he was honest and competent he should have self Company assets first and if there was a shortfall he could then have gone after personal assets. But due to his corrupt nature ,incompetence and vindictiveness he chose to make me homeless by selling my home and residence leaving me homeless.

B - In addition Mr Reggie Saruchera Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International is at the centre of my dispute with Interfin Banking Corporation due to his corrupt and incompetent handling of the ENG liquidation. In particular his disposal of 309 million Century Holdings shares which we bought for Z$ 35 billion (then equivalent to approximately US $ 17.5 million ) and selling those shares for Z$ 2.9 billion ( then approximately equivalent to US $ 1,5 million).He sold the shares creating a loss of Z$ 32 billion (approximately $ US 16 million).This transaction had all hallmarks of corruption, insider trading and incompetence all rolled into one which forced me to initiate high court action HC 6244-04 . I have attached a copy of HC -6244 -04 which fully describes the fraud and corruption engineered by Mr Saruchera.This is totally unbecoming for a Chartered Accountant to be so blatantly corrupt and fraudulent when he had a fiduciary duty to protect all stakeholder interest. He totally ignored this duty and embarked on mission to line his pockets and in unjust self enrichment schemes selling assets at under priced levels to his relatives, friends and cronies.

Brief Back Ground
In late 2003 my business partner and myself were arrested on allegations of economic crimes which we were later cleared of resulting in my De-specification on 29 April 2011. In order for us get bail we secured the creditors by placing ENG Capital under voluntary liquidation. We and First Mutual Life the biggest creditors agreed on Mr Reggie Saruchera who was to protect our Interest and those interests of the creditors .A consent order was granted on the proviso that he was supposed to work in consultation with all stakeholders since he had been appointed with our consent under High court cases HC 244-04 and HC 145 - 04.

Mr Saruchera and Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International had a fiduciary responsibility to act prudently, honestly and diligently. We all assumed that being a Chartered Accountant accredited to Institute of Accountants of Zimbabwe ( ICAZ) Mr Saruchera would act competently, professionally and reasonably. We were very disappointed by his level of incompetence, unprofessionalism ,unreasonableness and general corrupt conduct on how he handled the ENG Capital Investments liquidation.

In the first instance Mr Saruchera started by selling off ENG Assets before even verifying the Company’s liabilities and assets. He did not even construct a basic Trial Balance to guide the process and he started to sell assets hap-hazardly in a corrupt manner least expected of a man who claims to be a Chartered Accountant. Even an inexperienced book keeper would know that before selling assets you need to secure them and verify all claims before deciding what to sell and at what price.

1 - He sold assets which he didn’t have authority or permission to sell. We suspect he was getting kick backs from his connections who were getting these assets at completely unrealistic prices.

2 - He sold our personal assets even though he had not exhausted Company assets which he later on surrendered saying they were in excess to creditor requirements.

3 - He was cherrying picking our personal assets motivated by greedy, corruption and envy and selling these asset to his select connections whom we suspect were his friends, relatives and business associates.It appears his friends, relatives and business associates were directing him which assets to sell and at what price totally ignoring his fiduciary duties.

4 - For Example he sold my house number 17 Chishawasha Road ,Chishawasha to someone we have reason to believe is his close friend or relative yet he returned Allied Conveyors P/L and other assets to ENG Directors .Why would he sell my personal house leaving me homeless when he could have sold movable assets such as Allied Conveyors. Such actions only prove his corrupt and incompetent conduct which is totally unbecoming of a man who is supposed to be a Chartered Accountant in good standing with ICAZ.

5 - Once Mr Saruchera Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International was appointed Liquidator he took a very hostile and aggressive attitude towards us even though we had appointed him by consent to protect all stake holders. We agreed that the best way was to negotiate share swaps with creditors and give them shares which we owned in various companies instead of selling the shares because the share market was depressed. Our biggest creditor FML and others had agreed to get shares instead of cash in particular our shares in Century Bank were bought at a cost of $ 35 billion and were valued even higher since they were a controlling stake in a Bank

6 - We heard Rumours that Century Shares were being sold and we asked Mr Saruchera who initially denied the rumour. After a few days we then read in the newspaper that Mr Saruchera had sold 309 million CENTURY shares .Our lawyer then wrote to him seeking clarification on why he had sold the shares since he did not have permission to sell the shares and also since Creditors had agreed to receive shares instead of cash payments. We wrote to ZSE and to Fidelity asking for identity of buyer and seeking investigation because we suspected Mr Saruchera acted corruptly to sell the shares at 2,9 billion when we had bough the shares for $ 35 billion ( US17 $ million) (causing a loss of $ 32 billion or US $ 16 million).He sold them through a special bargain which showed he had a side deal already since he was supposed to sell the shares thru normal market deal which sells to the highest bidder.

7 - Special Bargains are pure symptoms of corruption and kick backs especially when assets are supposed to be sold to the highest bidder to ensure that Creditors are fully paid and any surplus goes to the

8 - Our lawyers asked the ZSE to stop the deal and investigate. This was ignored. We then started legal proceedings of High court case HC 6244-04 Seeking to stop the sale of the shares and remove Saruchera from office. Once Saruchera saw our court action he then could not defend his decision which was clearly corrupt and unjustifiable by selling something bought for $35 billion for $ 2.9 billion. He started to intimidate us with specification threats and also verbally saying he had full powers from "authorities" to deal with us as harshly as he wanted.

9 - After we filed the motion to remove Saruchera from office and stop the sale of the shares Saruchera then applied to the Minister of Justice for myself ,my business partner Nyasha Watyoka and our Lawyer to be specified. We were all specified and Saruchera appointed Investigator. Saruchera then became Liquidator and Investigator at the same time.

10 - Mr Saruchera was selling assets which he was supposed to investigate even though there was already court application HC 6244-04 to stop the sales and remove him from office. There was conflict of interest with liquidator being investigator he became the Police, Prosecutor, Witness and Judge all rolled into one creating a situation without any check as to the fairness of the work he was doing.

11 - Various laws and regulations were violated in the process of disposing our shares in the Bank .There was a general cloud of corruption, insider dealing ,incompetence which I outlined in my High court application Case HC 6244-04 seeking to remove Mr Saruchera from office as Liquidator since he had started by selling our assets without even verifying how much we owed to the creditors as is required by the law and general good corporate governance practice

12 - My lawyer then told me I was not safe since he had information that there were people who were prepared to eliminate me so that they can have full access to the ENG assets which I was resisting through court action. In fear I then fled Zimbabwe and tried to clear my name and clarify the ENG position.

13 - Mr Saruchera then continued to sell assets and he even sold my personal house number 17 Chishawasha Road, Chishawasha this (left me homeless) even though he had not finished selling ENG assets he took my personal house whilst leaving ENG assets such as Allied Conveyors which he later returned but he sold my house instead of ENG assets showing he was being ,malicious ,vindictive and corrupt as I suspect most assets were being sold to his connections .

14 - The bank was sold even though there was a court application HC 6244-04 to block it. Interfin and many other buyers before them were buying an asset that was already disputed. They failed to do their proper due diligence to verify the ownership dispute. They inherited Century/CFX bank and took over its assets and liabilities which included our claim. This is the nature of my dispute with Interfin Bank.

15 - Interfin Bank have always known the illegal and corrupt nature surrounding the sale of those shares and assumed all risk linked to these shares and that Financial Instution which is well known.

My court claim HC 6244-04 filed at the is well known and was well publicised such that when the Finance Bank of Zambia and Credit Suisse of Switzerland attempted to buy CFX Bank I told them about my claim and they did their own checks and verified the legitimacy of the claim. They stopped the transaction since my claim was proved to be legitimate. Interfin Banking Corporation were fully aware that they were buying stolen property and are now in possession of stolen property which they should return.

Yours Sincerely ,

Gilbert Muponda
Contact
Phone - 1-647-994-5542
Email - gilbert@gmricapital.com
Face Book - http://www.facebook.com/GMRICAPITAL

GILBERT FARAI MUPONDA and ENG CAPITAL (PVT) LTD: INTEREST IN CFX FINANCIAL SERVICES (PVT) LTD

2011-05-26T20:37:00.000-04:00

OUR REF: BC/pmd/44

Monday September 27, 2010

The Managing Director

Interfin Holdings (Pvt) Ltd

15th Floor, NSSA Building

Cnr Sam Nujoma St/Julius Nyerere Way

HARARE

Attention: Mr. R. Njanike

Dear Mr. Njanike

Re: GILBERT FARAI MUPONDA and ENG CAPITAL (PVT) LTD: INTEREST IN CFX FINANCIAL SERVICES (PVT) LTD

We refer to our letter dated August 27, 2010 as well as to other previous correspondence in this matter.

We confirm that our client right from the outset, has been challenging the manner in which ENG Capital (Pvt) Ltd’s shares in Century Bank were disposed of by the liquidator, Mr. R. Saruchera. In fact, our client challenged the transfer of the shares through High Court case No. H.C. 6244/04. His co-director, Mr. Nyasha Watyoka supported this court application. The main thrust of this court application was to block the sale and/or transfer of our client’s shares. Our client owned 309 million shares in Century Bank Limited. With respect, therefore, the assumption that our client does not have a legitimate claim is clearly misplaced. Please note that case number H.C. 6244/04, that was filed in the High Court at Harare in late May 2004 by our client’s then lawyer, the late Mr. Oscar Ziweni, is still pending. For your information and records, herewith we forward a copy of the full court application under case number H.C. 6244/04. Our understanding is that Century Holdings has since been effectively taken over by Interfin Holdings Limited. Further, we understand that Interfin Holdings (Pvt) Ltd assumed all the assets and liabilities of the Century Holdings Limited when they took over CFX Bank which itself had taken over the original Century Bank.

When Mr. Oscar Ziweni passed on, our client was left with no legal representation at that stage and around the same time, he was specified. Fearing for his life, our client had no option but to flee Zimbabwe. Mr. Ziweni died in a very mysterious circumstance and our client had every reason to fear that his own life was also in danger. This is the main reason why he fled Zimbabwe.

The process to have our client de-specified has since been set in motion and we are very confident that within the next few weeks, he will be formally de-specified.

You can be assured that our client will take this matter up with the courts in Zimbabwe as soon as he is formally de-specified.

Yours faithfully

B. CHIKOWERO (MR)

GUTU & CHIKOWERO

cc client

cc The Business Editor

NewsDay

Harare

Attention: Mr. Munyaradzi Mugowo

(This is for your information. In the interest of fairness and balanced reporting, we hope and trust that your newspaper will carry a story that gives our client’s side of the story as set out in our letter to Interfin Holdings Limited).

Corruption and Incompetence perfected by Mr Reggie Saruchera of Grant Thornton Camelsa, of Grant Thornton International

2011-05-26T20:36:00.000-04:00

Mr Reggie Saruchera of Grant Thornton Camelsa, of Grant Thornton International

refused to identify the buyer of our 309 million shares Century Shares whom we believe were his front, connection ,relative or business associates.

When I challenged him in court to identify the buyer instead of responding to court application he applied to the Minister of Justice to have me specified so that I could not challenge him.He applied for my specification maliciously so that he could corruptly dispose off ENG assets with any resistance.

This was a clear attempt to cover his corrupt and incompetent conduct.Mr Reggie Saruchera Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International is at the centre of this dispute with Interfin Banking Corporation due to his corrupt and incompetent handling of the ENG liquidation. In particular his disposal of 309 million Century Holdings shares which we bought for Z$ 35 billion (then equivalent to approximately US $ 17.5 million ) and selling those shares for Z$ 2.9 billion ( then approximately equivalent to US $ 1,5 million).He sold the shares creating a loss of Z$ 32 billion (approximately $ US 16 million).This transaction had all hallmarks or corruption, insider trading and incompetence all rolled into one which forced me to initiate high court action HC 6244-04 . Interfin Banking Corporation due to greed and unchecked appetite for risk thought wise to buy a looted asset which created the current dispute with ENG Capital.

　

Interfin Bank Corporation, Farai Rwodzi,,Raymond Njanike have always known of my claim of this bank since I personally wrote to them and my lawyers Gutu and Chikowero wrote to them well before they got involved and advised them of the dispute and the claim.

Due to greed, incompetence and lack of foresight Interfin Banking Corporation decided to buy what was clearly a stolen asset. And now they are in possession of stolen property which they bought knowing fully it was contested and stolen. For the avoidance of doubt below is one of the letters by my Lawyers Gutu and Chikowero to Interfin Managing Director on the matter.

OUR REF: BC/pmd/44

Monday September 27, 2010

The Managing Director

Interfin Holdings (Pvt) Ltd

15th Floor, NSSA Building

Cnr Sam Nujoma St/Julius Nyerere Way

HARARE

Attention: Mr. R. Njanike

Dear Mr. Njanike

Re: GILBERT FARAI MUPONDA and ENG CAPITAL (PVT) LTD: INTEREST IN CFX FINANCIAL SERVICES (PVT) LTD

We refer to our letter dated August 27, 2010 as well as to other previous correspondence in this matter.

We confirm that our client right from the outset, has been challenging the manner in which ENG Capital (Pvt) Ltd’s shares in Century Bank were disposed of by the liquidator, Mr. R. Saruchera. In fact, our client challenged the transfer of the shares through High Court case No. H.C. 6244/04. His co-director, Mr. Nyasha Watyoka supported this court application. The main thrust of this court application was to block the sale and/or transfer of our client’s shares. Our client owned 309 million shares in Century Bank Limited. With respect, therefore, the assumption that our client does not have a legitimate claim is clearly misplaced. Please note that case number H.C. 6244/04, that was filed in the High Court at Harare in late May 2004 by our client’s then lawyer, the late Mr. Oscar Ziweni, is still pending. For your information and records, herewith we forward a copy of the full court application under case number H.C. 6244/04. Our understanding is that Century Holdings has since been effectively taken over by Interfin Holdings Limited. Further, we understand that Interfin Holdings (Pvt) Ltd assumed all the assets and liabilities of the Century Holdings Limited when they took over CFX Bank which itself had taken over the original Century Bank.

When Mr. Oscar Ziweni passed on, our client was left with no legal representation at that stage and around the same time, he was specified. Fearing for his life, our client had no option but to flee Zimbabwe. Mr. Ziweni died in a very mysterious circumstance and our client had every reason to fear that his own life was also in danger. This is the main reason why he fled Zimbabwe.

The process to have our client de-specified has since been set in motion and we are very confident that within the next few weeks, he will be formally de-specified.

You can be assured that our client will take this matter up with the courts in Zimbabwe as soon as he is formally de-specified.

Yours faithfully

B. CHIKOWERO (MR)

GUTU & CHIKOWERO

cc client

cc The Business Editor

NewsDay

Harare

Attention: Mr. Munyaradzi Mugowo

(This is for your information. In the interest of fairness and balanced reporting, we hope and trust that your newspaper will carry a story that gives our client’s side of the story as set out in our letter to Interfin Holdings Limited).

Letter Sent to Interfin Banking Corporation MD Raymond Njanike

2011-05-26T20:35:00.001-04:00

OUR REF: BC/pmd/44

Monday September 27, 2010

The Managing Director

Interfin Holdings (Pvt) Ltd

15th Floor, NSSA Building

Cnr Sam Nujoma St/Julius Nyerere Way

HARARE

Attention: Mr. R. Njanike

Dear Mr. Njanike

Re: GILBERT FARAI MUPONDA and ENG CAPITAL (PVT) LTD: INTEREST IN CFX FINANCIAL SERVICES (PVT) LTD

We refer to our letter dated August 27, 2010 as well as to other previous correspondence in this matter.

We confirm that our client right from the outset, has been challenging the manner in which ENG Capital (Pvt) Ltd’s shares in Century Bank were disposed of by the liquidator, Mr. R. Saruchera. In fact, our client challenged the transfer of the shares through High Court case No. H.C. 6244/04. His co-director, Mr. Nyasha Watyoka supported this court application. The main thrust of this court application was to block the sale and/or transfer of our client’s shares. Our client owned 309 million shares in Century Bank Limited. With respect, therefore, the assumption that our client does not have a legitimate claim is clearly misplaced. Please note that case number H.C. 6244/04, that was filed in the High Court at Harare in late May 2004 by our client’s then lawyer, the late Mr. Oscar Ziweni, is still pending. For your information and records, herewith we forward a copy of the full court application under case number H.C. 6244/04. Our understanding is that Century Holdings has since been effectively taken over by Interfin Holdings Limited. Further, we understand that Interfin Holdings (Pvt) Ltd assumed all the assets and liabilities of the Century Holdings Limited when they took over CFX Bank which itself had taken over the original Century Bank.

When Mr. Oscar Ziweni passed on, our client was left with no legal representation at that stage and around the same time, he was specified. Fearing for his life, our client had no option but to flee Zimbabwe. Mr. Ziweni died in a very mysterious circumstance and our client had every reason to fear that his own life was also in danger. This is the main reason why he fled Zimbabwe.

The process to have our client de-specified has since been set in motion and we are very confident that within the next few weeks, he will be formally de-specified.

You can be assured that our client will take this matter up with the courts in Zimbabwe as soon as he is formally de-specified.

Yours faithfully

B. CHIKOWERO (MR)

GUTU & CHIKOWERO

cc client

cc The Business Editor

NewsDay

Harare

Attention: Mr. Munyaradzi Mugowo

(This is for your information. In the interest of fairness and balanced reporting, we hope and trust that your newspaper will carry a story that gives our client’s side of the story as set out in our letter to Interfin Holdings Limited).

Mr Reggie Saruchera of Grant Thornton Camelsa, of Grant Thornton International When proffessionals act unprofessionally

2011-05-25T18:23:00.001-04:00

Introduction
Mr Reggie Saruchera Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International is at the centre of my dispute with Interfin Banking Corporation due to his corrupt and incompetent handling of the ENG liquidation. In particular his disposal of 309 million Century Holdings shares which we bought for Z$ 35 billion (then equivalent to approximately US $ 17.5 million ) and selling those shares for Z$ 2.9 billion ( then approximately equivalent to US $ 1,5 million).He sold the shares creating a loss of Z$ 32 billion (approximately $ US 16 million).This transaction had all hallmarks or corruption, insider trading and incompetence all rolled into one which forced me to initiate high court action HC 6244-04 . Interfin Banking Corporation due to greed and unchecked appetite for risk thought wise to buy a looted asset which created the current dispute with ENG Capital.

Brief Back Ground
In late 2003 my business partner and myself were arrested on allegations of economic crimes which we were later cleared of resulting in my De-specification on 29 April 2011. In order for us get bail we secured the creditors by placing ENG Capital under voluntary liquidation. We and FML the biggest creditors agreed on Mr Reggie Saruchera who was to protect our Interest and those interests of the creditors .A consent order was granted this order meant he was supposed to work in consultation with all stakeholders since he had been appointed with our consent.

Mr Saruchera and Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International had a fiduciary responsibility to act prudently, honestly and diligently. We all assumed that being a Chartered Accountant accredited to Institute of Accountants of Zimbabwe ( ICAZ) Mr Saruchera would act competently, professionally and reasonably. We were very disappointed by his level of incompetence, unprofessionalism ,unreasonableness and general corrupt conduct on how he handled the ENG Capital Investments liquidation.

In the first instance Mr Saruchera started by selling off ENG Assets before even verifying the Company’s liabilities and assets. He did not even construct a basic Trial Balance to guide the process and he started to sell assets hap-hazardly in a corrupt manner least expected of a man who claims to be a Chartered Accountant. Even an inexperienced book keeper would know that before selling assets you need to secure them and verify all claims before deciding what to sell and at what price.

1 - He sold assets which he didn’t have authority or permission to sell. We suspect he was getting kick backs from his connections who were getting these assets at completely unrealistic prices.

2 - He sold our personal assets even though he had not exhausted Company assets which he later on surrendered saying they were in excess to creditor requirements.

3 - He was cherrying picking our personal assets motivated by greedy, corruption and envy and selling these asset to his select connections whom we suspect were his friends, relatives and business associates.It appears his friends, relatives and business associates were directing him which assets to sell and at what price totally ignoring his fiduciary duties.

4 - For Example he sold my house number 17 Chishawasha Road ,Chishawasha to someone we have reason to believe is his close friend or relative yet he returned Allied Conveyors P/L and other assets to ENG Directors .Why would he sell my personal house leaving me homeless when he could have sold movable assets such as Allied Conveyors. Such actions only prove his corrupt and incompetent conduct which is totally unbecoming of a man who is supposed to be a Chartered Accountant in good standing with ICAZ.

5 - Once Mr Saruchera Managing Partner of Grant Thornton Camelsa, a member firm of Grant Thornton International was appointed Liquidator he took a very hostile and aggressive attitude towards us even though we had appointed him by consent to protect all stake holders. We agreed that the best way was to negotiate share swaps with creditors and give them shares which we owned in various companies instead of selling the shares because the share market was depressed. Our biggest creditor FML and others had agreed to get shares instead of cash in particular our shares in Century Bank were bought at a cost of $ 35 billion and were valued even higher since they were a controlling stake in a Bank

6 - We heard Rumours that Century Shares were being sold and we asked Mr Saruchera who initially denied the rumour. After a few days we then read in the newspaper that Mr Saruchera had sold 309 million CENTURY shares .Our lawyer then wrote to him seeking clarification on why he had sold the shares since he did not have permission to sell the shares and also since Creditors had agreed to receive shares instead of cash payments. We wrote to ZSE and to Fidelity asking for identity of buyer and seeking investigation because we suspected Mr Saruchera acted corruptly to sell the shares at 2,9 billion when we had bough the shares for $ 35 billion ( US17 $ million) (causing a loss of $ 32 billion or US $ 16 million).He sold them through a special bargain which showed he had a side deal already since he was supposed to sell the shares thru normal market deal which sells to the highest bidder.

7 - Special Bargains are pure symptoms of corruption and kick backs especially when assets are supposed to be sold to the highest bidder to ensure that Creditors are fully paid and any surplus goes to the

8 - Our lawyers asked the ZSE to stop the deal and investigate. This was ignored. We then started legal proceedings of High court case HC 6244-04 Seeking to stop the sale of the shares and remove Saruchera from office. Once Saruchera saw our court action he then could not defend his decision which was clearly corrupt and unjustifiable by selling something bought for $35 billion for $ 2.9 billion. He started to intimidate us with specification threats and also verbally saying he had full powers from "authorities" to deal with us as harshly as he wanted.

9 - After we filed the motion to remove Saruchera from office and stop the sale of the shares Saruchera then applied to the Minister of Justice for myself ,my business partner Nyasha Watyoka and our Lawyer to be specified. We were all specified and Saruchera appointed Investigator. Saruchera then became Liquidator and Investigator at the same time.

10 - Mr Saruchera was selling assets which he was supposed to investigate even though there was already court application HC 6244-04 to stop the sales and remove him from office. There was conflict of interest with liquidator being investigator he became the Police, Prosecutor, Witness and Judge all rolled into one creating a situation without any check as to the fairness of the work he was doing.

11 - Various laws and regulations were violated in the process of disposing our shares in the Bank .There was a general cloud of corruption, insider dealing ,incompetence which I outlined in my High court application Case HC 6244-04 seeking to remove Mr Saruchera from office as Liquidator since he had started by selling our assets without even verifying how much we owed to the creditors as is required by the law and general good corporate governance practice

12 - My lawyer then told me I was not safe since he had information that there were people who were prepared to eliminate me so that they can have full access to the ENG assets which I was resisting through court action. In fear I then fled Zimbabwe and tried to clear my name and clarify the ENG position.

13 - Mr Saruchera then continued to sell assets and he even sold my personal house number 17 Chishawasha Road, Chishawasha this (left me homeless) even though he had not finished selling ENG assets he took my personal house whilst leaving ENG assets such as Allied Conveyors which he later returned but he sold my house instead of ENG assets showing he was being ,malicious ,vindictive and corrupt as I suspect most assets were being sold to his connections .

14 - The bank was sold even though there was a court application HC 6244-04 to block it. Interfin and many other buyers before them were buying an asset that was already disputed. They failed to do their proper due diligence to verify the ownership dispute. They inherited Century/CFX bank and took over its assets and liabilities which included our claim. This is the nature of my dispute with Interfin Bank.

15 - Interfin Bank have always known the illegal and corrupt nature surrounding the sale of those shares and assumed all risk linked to these shares and that Financial Instution which is well known.

16 - My court claim HC 6244-04 filed at the High court in Harare on 21 May 2004 is well known and was well publicised such that when the Finance Bank of Zambia and Credit Suisse of Switzerland attempted to buy CFX Bank I told them about my claim and they did their own checks and verified the legitimacy of the claim. They stopped the transaction since my claim was proved to be legitimate. Interfin Banking Corporation were fully aware that they were buying stolen property and are now in possession of stolen property which they should return.

Notice of Opposition to CFX Bank liquidation attempt by Interfin Banking Corporation

2011-05-22T23:03:00.001-04:00

Founding Affidavit opposing the Liquidation of CFX Bank Limited in terms of the Companies Act by Gilbert Muponda filed with the Master of High Court I, GILBERT MUPONDA, of the City of TORONTO,ONTARIO ,CANADA, MAKE OATH

AND SAY AS FOLLOWS:

swear or afﬁrm that:

(A) - I know or believe the following facts to be true. If these facts are based on information from others,

(B) - I believe that information to be true.

(C) - I make this affidavit to oppose an application by -

INTERFIN BANKING CORPORATION’s parent Company INTERFIN FINANCIAL HOLDINGS LIMITED DIRECTORS AND CFX BANK LIMITED DIRECTORS AND CFX FINANCIAL SERVICES HOLDINGS LIMITED FOR LIQUIDATION OF CFX BANK LIMITED

BRIEF BACK GROUND

At all material times covered by these proceedings I have been the controlling shareholder of Century Bank Financial Holdings which I controlled through various investment vehicles and companies collectively known as ENG Capital .Century Bank Financial Holdings Limited was merged with CFX Bank and renamed CFX Bank and then merged with Interfin Merchant Bank resulting in formation of Interfin Banking Corporation. I have already filed HC 62 -6244-04 seeking the reversal of the first illegal merger between Century Bank and CFX Bank upon its completion will result upon the reversal of the Merger of Interfin and CFX Bank since Interfin on its own does not have any meaningful assets accept those stripped from my Bank which I owned through various investment vehicles generally known as ENG Capital Group.

When I opposed the first merger between Century Bank and CFX bank I was specified to tie my hands so that I could not legally challenge this illegal and irregular transaction. I was specified under the Prevention of Corruption Act whose purpose is to allow and investigation and also safeguard assets of the specified person so that no-one can sell, buy or dispose of these assets as they are under investigation.

I was specified on 28 May 2004. The specification order was revoked on 29 April 2011.This legally restores me to my pre-specification position and I seek to now proceed with HC -6244-04 .I have attached the original founding affidavit.

According to the Prevention of Corruption Act Assets of a specified person can not be sold ,bought or disposed of since those assets are under investigation and would be required as evidence in the legal proceedings. So you can not be investigating assets and at the same time selling those very same assets. The purpose of specifying a person is to facilitate investigations into the alleged corrupt activities. Section 10(2) specifically prohibits any person from dealing with the assets of a specified person. In terms of Section 10(7) of the Act to all transactions that we purportedly concluded during the period specification are null and void.

The purpose of specification is not to sell an individuals assets but to investigate so assets cant be sold whilst they are being investigated at the same. This is illegal and against natural justice and the Anti-Corruption Act.

When Interfin Bank illegally and irregularly took over my Bank CFX which was previously called Century Bank they used the excuse that I was specified so I couldn’t oppose the illegal transaction. Now that that my full legal rights have been restored I have already filed a motion to oppose the liquidation of CFX Bank and also reverse the Merger which created Interfin Banking Corporation.

1 - I do hereby place it on record that I wish to oppose the proposed liquidation of CFX Bank Limited. I will suffer irreparable financial damage exceeding US $ 15.4 million if the said liquidation goes ahead before finalization of the High Court case HC 6244-04 in which I am challenging the illegal and irregular sale of 309 million shares from Century Bank which was then merged to create CFX Bank which is now in liquidation in an attempt to escape paying the $ 15.4 million.

2 - I have an on-going dispute involving CFX Bank Limited and Interfin Banking Corporation and its holding Company.Mr Raymond Njanike the Managing Director of Interfin Bank has publicly acknowledged this dispute in the NewsDay Newspaper published on 27 September 2010 by Mr Munyaradzi Muguwo in addition to many other articles.Link http://www.newsday.co.zw/article/2010-09-27-muponda-scared-off-cfx-suitors-interfin

3 - Interfin Holdings Limited Director Mr Farai Rwodzi also publicly acknowledged this debt when he falsely claimed in the Newsday Newspaper of 25 August 2010 that Interfin had paid me US $ 5.3 million for my shares in Century / CFX Bank which were illegally and irregularly acquired. The link is herehttp://www.newsday.co.zw/article/2010-08-25-interfin-acquires-13-of-starafrica

4 - I denied this false statement and NewsDay Newspaper published a retraction a few days later.Upto this day Interfin have not paid me anything for my Bank which they took and rebranded Interfin Banking Corporation and now they are trying to liquidate it after stripping it of all assets.

5 - ENG Capital contributories ,shareholders and Directors and myself are claiming US$ 15.4 million being the 309 million shares multiplied by the share price of $ 0.05 which give the claim total of US $ 15.4 million.

6 - Interfin Banking Corporation Zimbabwe is a product of a fraudulent merger between Century Bank and CFX Bank which was subsequently renamed Interfin Banking Corporation after another irregular merger between Century/CFX Bank and Interfin Bank Zimbabwe.

7 - The liquidation of CFX Bank Limited should therefore be held back until such a time that HC 6244-04 is finalized. Interfin Bank Directors are seeking to hide their tracks and creating a very complex and complicated web of mergers and de-mergers and liquidations and re-structurings which will conceal their illegal and irregular take over of Century/CFX Bank assets.

8 - All these “fake mergers” were designed with the intention of concealing the initial fraudulent transfer of 309 million Century shares illegally and irregularly transferred into Century/CFX Bank then Interfin Banking Corporation. This illegal transfer is being challenged through High court case HC-6244-04.

9 - I have attached a copy of my original founding affidavit for High Court Case HC 6244 – 04 dated 21 May 2004.

10 - I have attached the supporting affidavit by my co-Director Nyasha Watyoka fully supporting my Original affidavit.

11 - The High Court Case is still before the Courts but it has been delayed since I am currently specified and as such have to seek permission from the Liquidator/Investigator to proceed with the action. However my court action HC 6244-04 is on the most part against the liquidator /Investigator it is therefore not possible to seek permission and approval from the same person you wish to take action against.

12 - I wish that the liquidation be delayed until such a time High Court deals with HC 6244-04.The liquidation is not urgent and I see no reason why it can not be put on hold pending the finalization of HC -6244-04.

13 - Proceeding with the liquidation before HC 6244-04 is finalized will cause me irreparable damage amounting to $ 15.4 million which I am seeking from CFX Bank Limited ,Interfin Holdings ,Interfin Directors and Shareholders jointly and severally each paying and absolving for the other.

14 - Interfin Banking Corporation Zimbabwe is a product of a fraudulent merger between Interfin Merchant Bank and CFX Bank which was subsequently renamed Interfin Banking Corporation after another irregular merger between Century/CFX Bank Limited and Interfin Bank Zimbabwe.

15 - Any further transaction or re-organization or restructuring will not change the facts that Interfin Banking Corporation has a disputed ownership due to the presence of CFX Bank assets in its DNA composition.

16 - If the merger was approved by all the regulatory Authorities then why would Interfin try to liquidate a Bank which it merged with. It clearly doesn’t make any sense to liquidate a Bank which has already been merged with another .

17 - Its not legally possible and its practically fictitious to claim to liquidate a Bank which has already merged with another resulting in the formation of a new entity.

18 - The so-called liquidation of CFX Bank is nothing but a fraud being perpetrated by Interfin Holdings Directors . There is no liquidation taking place whatsoever since all the CFX assets have already been “merged“ and transferred into the new entity now renamed Interfin Banking Corporation.

19 - This is an effort to hide the tracks of the original fraud which is being challenged under High Court case HC 6244-04.This is an effort to escape legitimate liabilities brought about by Interfin`s unwise and greed move of trying to grab CFX Bank assets.

20 - Interfin can not fully capitalize a Bank and then liquidate the same bank all within a year .According to another report titled Interfin Holdings Fully Capitalises CFX Bank Published on 13 January 2010 – http://allafrica.com/stories/201001130248.html .

21 - This does not add up and only provides further evidence that Interfin Banking Corporation are involved in fraudulent transaction and the various movements are meant to hide the tracks and cleanse an otherwise illegal and underhand deal.

22 - There can be no talk of liquidating CFX Bank since CFX Assets have been merged with Interfin and effectively transferred into Interfin Banking Corporation and rebranded Interfin Banking Corporation in an a deliberate fraudulent effort to hide the illegal take over of Century – CFX Bank assets and network.

23 - Specifically the assets below have been stripped from CFX Bank and transferred into Interfin Banking Corporation. IT and Computer Systems

- MoneyGram Money Transfer Franchise and System

- Branch Network

- Customers , clients and loan Book

- International Correspondent Bank Network

- Management and Staff

- Leases, Contracts and general goodwill

- Buildings and offices

- ZSE Listing Spot

24 - Interfin Bank Directors led by Messrs Farai Rwodzi and Raymond Njanike are getting increasingly desperate to hide their tracks on the illegal and irregular take over of Century – CFX Bank assets which were illegally transferred into Interfin Bank and rebranded Interfin Banking Corporation.

25 - Their lastest stunt of claiming to “liquidate“ CFX Bank is one such effort to conceal their fraudulent take over of Century – CFX Bank assets and stealthily transferring them into Interfin Bank and rename the resultant entity Interfin Banking Corporation.

26 - After claiming a successful merger as anticipated in this report by Dumisani Ndlela http://www.financialgazette.co.zw/companies-a-markets/4525-cfx-fs-to-lose-bank-for-bigger-entity.html in June 2010 only 9 months later CFX Bank now rebranded Interfin Banking Corporation is being liquidatedhttp://www.newsday.co.zw/article/2011-03-14-cfx-to-windup-operations .

27 - Interfin owes me and other contributories US 15.4 million for the 309 million shares fraudulently converted from Century Bank into CFX Bank then Interfin Banking Corporation. Interfin Bank Directors and Shareholders are trying to escape paying this liability by claiming CFX Bank is being liquidated.

28 - Interfin Holdings limited and Interfin Banking Corporation Directors continue to mislead the public and other stakeholders by devising fraudulent schemes as a way to avoid settling what is due to Gilbert Muponda and ENG Capital contributories, shareholders and Directors.

29 - The fraudulent attempt by Interfin Holdings Directors to mislead the investing public and depositors that the ownership dispute will disappear just because they are attempting to fake a liquidation of a Bank whose assets they have transferred into another entity is totally irresponsible and disingenuous .

30 - Interfin Banking Corporation Directors seem to be practizing moral flexibility whilst bending rules and regulations to conceal their prior knowledge of a legitimate claim which they with held informing their employers who are the Investing public who are protected by the ZIMBABWE STOCK EXCHANGE ACT Acts 27/1973, 24/1975, 15/1981, 20/1984; R.G.Ns 54/1975; 1135/1975, S.Is 468/1979, 236/1980.

31 - High Court Case HC-6244-04 was filed in 2004 and its still pending before the courts. Yet Interfin Banking Corporation Directors pretend there was never any challenge to their illegal and irregular grabbing of Century/CFX Bank.

32 - By will fully and deliberately misleading the Investing Public in violation of the ZSE Act Interfin Banking Corporation is an organization that has re-defined the definition of corruption , deceit and concealment of material information from Investing public and Regulatory Authorities.

33 - The liquidation of CFX Bank Limited should therefore be held back until such a time that HC 6244-04 is finalized. Interfin Bank Directors are seeking to hide their tracks and creating a very complex and complicated web of mergers and de-mergers and liquidations and re-structurings which will conceal their illegal and irregular take over of Century/CFX Bank assets.

34 - I make this affidavit in opposing the Liquidation of CFX bank Limited before High Court Case HC 6244-04 is finalized, and for no illegal or improper purpose.

Interfin Bank attempt to liquidate CFX Bank blocked by Gilbert Muponda Case HC 288-11

2011-05-18T17:22:00.002-04:00

Founding Affidavit opposing the Liquidation of CFX Bank Limited in terms of the Companies Act by Gilbert Muponda served on Interfin Bank and CFX Bank and filed with the Master of High Court on 17 May 2011 AT HARARE

I, GILBERT MUPONDA, of the City of TORONTO,ONTARIO ,CANADA, MAKE OATH

AND SAY AS FOLLOWS:
swear or afﬁrm that:

I know or believe the following facts to be true. If these facts are based on information from others,
I believe that information to be true.
I make this afﬁdavit in relation to an application* by

Interfin Holdings Limited Directors and CFX Bank Limited Directors
For Liquidation of CFX Bank Limited.

When Interfin Bank illegally and irregularly took over my Bank CFX which was previously called Century Bank they used the excuse that I was specified so I couldn’t oppose the illegal transaction. Now that that my full legal rights have been restored I have already filed a motion to oppose the liquidation of CFX Bank and also reverse the Merger which created Interfin Banking Corporation.

According to the Prevention of Corruption Act Assets of a specified person can not be sold ,bought or disposed of since those assets are under investigation and would be required as evidence in the legal proceedings. So you can not be investigating assets and at the same time selling those very same assets. The purpose of specifying a person is to facilitate investigations into the alleged corrupt activities. Section 10(2) specifically prohibits any person from dealing with the assets of a specified person. In terms of Section 10(7) of the Act to all transactions that we purportedly concluded during the period specification are null and void.

1 - I do hereby place it on record that I wish to oppose the proposed liquidation of CFX Bank Limited. I will suffer irreparable financial damage exceeding US $ 15.4 million if the said liquidation goes ahead before finalization of the High Court case HC 6244-04 in which I am challenging the illegal and irregular sale of 309 million shares from Century Bank which was then merged to create CFX Bank which is now in liquidation in an attempt to escape paying the $ 15.4 million.

2 - I have an on-going dispute involving CFX Bank Limited and Interfin Banking Corporation and its holding Company.Mr Raymond Njanike the Managing Director of Interfin Bank has publicly acknowledged this dispute in the NewsDay Newspaper published on 27 September 2010 by Mr Munyaradzi Muguwo in addition to many other articles.Link http://www.newsday.co.zw/article/2010-09-27-muponda-scared-off-cfx-suitors-interfin3 - Interfin Holdings Limited Director Mr Farai Rwodzi also publicly acknowledged this debt when he falsely claimed in the Newsday Newspaper of 25 August 2010 that Interfin had paid me US $ 5.3 million for my shares in Century / CFX Bank which were illegally and irregularly acquired. The link is herehttp://www.newsday.co.zw/article/2010-08-25-interfin-acquires-13-of-starafrica4 - I denied this false statement and NewsDay Newspaper published a retraction a few days later. Upto this day Interfin have not paid me anything for my Bank which they took and re-branded Interfin Banking Corporation and now they are trying to liquidate it after stripping it of all assets.

5 - ENG Capital contributories ,shareholders and Directors and myself are claiming US$ 15.4 million being the 309 million shares multiplied by the share price of $ 0.05 which give the claim total of US $ 15.4 million.

6 - Interfin Banking Corporation Zimbabwe is a product of a fraudulent merger between Century Bank and CFX Bank which was subsequently renamed Interfin Banking Corporation after another irregular merger between Century/CFX Bank and Interfin Bank Zimbabwe.

7 - The liquidation of CFX Bank Limited should therefore be held back until such a time that HC 6244-04 is finalized.Interfin Bank Directors are seeking to hide their tracks and creating a very complex and complicated web of mergers and de-mergers and liquidations and re-structurings which will conceal their illegal and irregular take over of Century/CFX Bank assets.

8 - All these “fake mergers” were designed with the intention of concealing the initial fraudulent transfer of 309 million Century shares illegally and irregularly transferred into Century/CFX Bank then Interfin Banking Corporation. This illegal transfer is being challenged through High court case HC-6244-04.

9 - I have attached a copy of my original founding affidavit for High Court Case HC 6244 – 04 dated 21 May 2004.

10 - I have attached the supporting affidavit by my Co-Director Nyasha Watyoka fully supporting my Original affidavit.

11 - The High Court Case is still before the Courts but it has been delayed since I am currently specified and as such have to seek permission from the Liquidator/Investigator to proceed with the action. However my court action HC 6244-04 is on the most part against the liquidator /Investigator it is therefore not possible to seek permission and approval from the same person you wish to take action against.

12 - I wish that the liquidation be delayed until such a time High Court deals with HC 6244-04.The liquidation is not urgent and I see no reason why it can not be put on hold pending the finalization of HC -6244-04.

13 - Proceeding with the liquidation before HC 6244-04 is finalized will cause me irreparable damage amounting to $ 15.4 million which I am seeking from CFX Bank Limited ,Interfin Holdings ,Interfin Directors and Shareholders jointly and severally each paying and absolving for the other.

14 - Interfin Banking Corporation Zimbabwe is a product of a fraudulent merger between Interfin Merchant Bank and CFX Bank which was subsequently renamed Interfin Banking Corporation after another irregular merger between Century/CFX Bank Limited and Interfin Bank Zimbabwe.

15 - Any further transaction or re-organization or restructuring will not change the facts that Interfin Banking Corporation has a disputed ownership due to the presence of CFX Bank assets in its DNA composition.

16 - If the merger was approved by all the regulatory Authorities then why would Interfin try to liquidate a Bank which it merged with. It clearly doesn’t make any sense to liquidate a Bank which has already been merged with another .

17 - Its not legally possible and its practically fictitious to claim to liquidate a Bank which has already merged with another resulting in the formation of a new entity.

18 - The so-called liquidation of CFX Bank is nothing but a fraud being perpetrated by Interfin Holdings Directors . There is no liquidation taking place whatsoever since all the CFX assets have already been “merged“ and transferred into the new entity now renamed Interfin Banking Corporation.

19 - This is an effort to hide the tracks of the original fraud which is being challenged under High Court case HC 6244-04.This is an effort to escape legitimate liabilities brought about by Interfin`s unwise and greed move of trying to grab CFX Bank assets.

20 - Interfin can not fully capitalize a Bank and then liquidate the same bank all within a year .According to another report titled Interfin Holdings Fully Capitalises CFX Bank Published on 13 January 2010 – http://allafrica.com/stories/201001130248.html .

21 - This does not add up and only provides further evidence that Interfin Banking Corporation are involved in fraudulent transaction and the various movements are meant to hide the tracks and cleanse an otherwise illegal and underhand deal.

22 - There can be no talk of liquidating CFX Bank since CFX Assets have been merged with Interfin and effectively transferred into Interfin Banking Corporation and rebranded Interfin Banking Corporation in an a deliberate fraudulent effort to hide the illegal take over of Century – CFX Bank assets and network.

23 - Specifically the assets below have been stripped from CFX Bank and transferred into Interfin Banking Corporation. IT and Computer Systems
- MoneyGram Money Transfer Franchise and System
- Branch Network
- Customers , clients and loan Book
- International Correspondent Bank Network
- Management and Staff
- Leases, Contracts and general goodwill
- Buildings and offices
- ZSE Listing Spot

24 - Interfin Bank Directors led are getting increasingly desperate to hide their tracks on the illegal and irregular take over of Century – CFX Bank assets which were illegally transferred into Interfin Bank and rebranded Interfin Banking Corporation.

25 - Their lastest stunt of claiming to “liquidate“ CFX Bank is one such effort to conceal their fraudulent take over of Century – CFX Bank assets and stealthily transferring them into Interfin Bank and rename the resultant entity Interfin Banking Corporation.

26 - After claiming a successful merger as anticipated in this report by Dumisani Ndlela http://www.financialgazette.co.zw/companies-a-markets/4525-cfx-fs-to-lose-bank-for-bigger-entity.html in June 2010 only 9 months later CFX Bank now re-branded Interfin Banking Corporation is being liquidatedhttp://www.newsday.co.zw/article/2011-03-14-cfx-to-windup-operations .

27 - Interfin owes me and other contributories US 15.4 million for the 309 million shares fraudulently converted from Century Bank into CFX Bank then Interfin Banking Corporation. Interfin Bank Directors and Shareholders are trying to escape paying this liability by claiming CFX Bank is being liquidated.

28 - Interfin Holdings limited and Interfin Banking Corporation Directors continue to mislead the public and other stakeholders by devising fraudulent schemes as a way to avoid settling what is due to Gilbert Muponda and ENG Capital contributories, shareholders and Directors.

29 - The fraudulent attempt by Interfin Holdings Directors to mislead the investing public and depositors that the ownership dispute will disappear just because they are attempting to fake a liquidation of a Bank whose assets they have transferred into another entity is totally irresponsible and disingenuous .

30 - Interfin Banking Corporation Directors seem to be practising moral flexibility whilst bending rules and regulations to conceal their prior knowledge of a legitimate claim which they with held informing their employers who are the Investing public who are protected by the ZIMBABWE STOCK EXCHANGE ACT Acts 27/1973, 24/1975, 15/1981, 20/1984; R.G.Ns 54/1975; 1135/1975, S.Is 468/1979, 236/1980.

31 - High Court Case HC-6244-04 was filed in 2004 and its still pending before the courts. Yet Interfin Banking Corporation Directors pretend there was never any challenge to their illegal and irregular grabbing of Century/CFX Bank.

32 - By will fully and deliberately misleading the Investing Public in violation of the ZSE Act Interfin Banking Corporation is an organization that has re-defined the definition of corruption , deceit and concealment of material information from Investing public and Regulatory Authorities.

33 - The liquidation of CFX Bank Limited should therefore be held back until such a time that HC 6244-04 is finalized. Interfin Bank Directors are seeking to hide their tracks and creating a very complex and complicated web of mergers and de-mergers and liquidations and re-structurings which will conceal their illegal and irregular take over of Century/CFX Bank assets.

34 - I make this affidavit in opposing the Liquidation of CFX bank Limited before High Court Case HC 6244-04 is finalized, and for no illegal or improper purpose.

RBZ on the right path with Gold backed Zimbabwe dollars Part 1 of 3

2011-05-17T09:25:00.001-04:00

The recent proposal by the Reserve Bank of Zimbabwe Governor for the introduction of a Gold backed Zimbabwe Dollar is an idea whose time has come. If implemented properly the Gold backed Zimbabwe dollar will resolve the liquidity crisis currently ravaging the sanctions hit economy. In light of Global financial crisis and targeted sanctions Zimbabwe is effectively barred from accessing any meaningful lines of credit and liquidity crisis will persist if the domestic capital market is not re-activated with the introduction of a Gold or Precious-Metal backed Zimbabwe dollar.

There is need to avoid Quasi Fiscal Activities and excessive printing of money which accelerated the demise of the previous dollar. The country has started to generate meaningful revenues with Zimbabwe Revenue Authority regularly outperforming revenue collection targets. Previously the Government had been forced to print money to finance everything. This is no longer necessary given the economic recovery and the discovery of Diamonds. The revenue from Diamonds can also be used to build the 6 months import cover and stock up Gold reserves to support the Gold Backed Zimbabwe dollar as proposed by the Reserve Bank of Zimbabwe Governor.

The Gold backed currency is based on the premise that the central bank hold a large amount of gold (or other precious metal) in relation to the paper money that they issue .That means if the Country doesn’t have any gold reserves not currency can be issued, this eliminates the normal inflationary pressure that come from modern FIAT money.

Zimbabwe has been systematically been excluded from the International credit system specifically because of the ZIDERA Act passed by the US. The act makes it illegal for any US national or Entity do transactions with certain entities or individuals in Zimbabwe .This affects various Institutions such as the World Bank ,IMF, IFC ,ADB etc where US representatives can not vote in favour of any credit to Zimbabwe designated nationals and entities or entities linked to them. This creates a huge political risk premium which make International banks hesitant to grant lines of credit to Zimbabwe and Zimbabwean Institutions.

This situation effectively blocks these Institutions do any meaningful business with Zimbabwe as the country’s political risk is magnified by have many leading figures being designated nationals. This lack of access to International credit markets has become very clear through out the Economy with Banks failing to grant any medium to long term loans. This is partly causing the mini-financial crisis rocking Zimbabwe’s banks as they fail to get reasonably priced funding. Its widely reported that Banks are lending at 40 to 60 % per annum which is way to high an interest rate to give to an legitimate business transaction .This has created a very high default risk and forced banks to avoid lending. This illiquidity needs to be addressed through introduction of a Gold Backed Currency.

Modern currency is basically paper money backed by the country’s revenue generation capacity and assets. The US is the largest holder of gold reserves. How much of this is still in Fort Knox PHYSICALLY and not just on paper is another question as much gold is loaned out for the whopping sum of 0.20%! In essence the US has sold a lot of its gold into the market through gold leasing (even though it still shows up on the central banks books as a asset (accounts receivable)).This partly explains why the US$ is still the world’s reserve currency since the USA holds the largest amounts of Gold even though its exact quantity remains

In foreign exchange, no major currency is considered to be as safe and stable as the Swiss Franc. The country's centuries long policy of political neutrality as well as the fact that 40% of its currency reserves were previously backed by the precious metal, contribute to Swiss's image as “liquid gold”. The proposed Gold backed Zimbabwe dollar can in fact be based on the same format .

Canada and Australia possess large reserves of precious metal and both countries have very strong, well-developed mining sectors. Australia is the world's third largest exporter of gold with mining accounting directly for approximately 8.5% of its GDP. Canada is the world's third largest producer of gold. These 2 countries have strong economies and currencies. Whilst Zimbabwe has huge Gold and other mineral reserves these have been properly leveraged out to create liquidity in the country’s Economy. There is need for Zimbabwe to move away from total dependency on a foreign currency whose economy has nothing in common with Zimbabwe’s.

The Economy and Industry is currently reportedly operating at approximately 45 -50 % of capacity. This is significantly higher than the 10-20% capacity utilization before the introduction multiple currencies in 2009.Now the multiple currencies have achieved their main intended purpose which was to stabilize the Economy. This goal has now been achieved and the next phase which is growth requires the use of a softer currency which closely mirrors the country’s macro and micro economic conditions and the US$ can be used in its traditional sense as a foreign currency but not to permanently replace the Zimbabwe dollar.

Gilbert Muponda is CEO of GMRI Capital .He can be reached at gilbert@gmricapital.com
Skype ID - gilbert.muponda
Website - www.gmricapital.com
Face book -http://www.facebook.com/GMRICAPITAL

ENG to list on ZSE

2011-05-02T15:22:00.002-04:00

By Darlington Musarurwa
ENG Capital Holdings, which faced the possibility of closure after the 2004 local banking crisis, is considering listing on the Zimbabwe Stock Exchange (ZSE) in the next 18 months in a process that is expected to raise an estimated US$5 million.

The holding company’s investment and asset management arms were placed under voluntary liquidation in February 2004.
However, liquidator Mr Reggie Saruchera, managing partner of Grant Thornton Camelsa, noted that the assets of the liquidated firms were actually in excess of the liabilities.

In an interview with The Sunday Mail Business last week, ENG Capital Holdings co-director Mr Gilbert Muponda said the company is planning to allocate between 5 percent and 10 percent of shares to its creditors and clients.

He also indicated that the listing is not being pursued to raise money but to “broaden and strengthen our shareholder base”.

“Our main reason to seek a ZSE listing is not to raise money but rather to broaden and strengthen our shareholder base.

“There are people who have been loyal and supportive to ENG Capital since day one and throughout the difficulties, and we firmly believe they should be rewarded with shareholding.

“These include the former ENG creditors who have fully been re-paid, but we still feel they deserve a share allocation. In addition, there are well-wishers and sympathisers like the close to 10 000 Facebook friends and fans on my account and the ENG account who have been supportive and shown great loyalty under very challenging circumstances.

“These individuals deserve an allocation of shares to share in the growth.

“So, 5 percent to 10 percent of the company will be allocated to these groups as a gratuity for the unwavering loyalty.
“We intend to list on the ZSE within the next 18 months, most likely via a market introduction. At this stage it’s unclear how much we will seek to raise but a general estimate is around US$5 million depending on market conditions given how illiquid the market is,” said Mr Muponda.

It is believed that initial valuations of the excess assets have indicated that there is sufficient value and operation capacity to meet and exceed all the ZSE listing requirements.

Also a local financial institution has been appointed lead financial advisor to handle the proposed listing of ENG.
Presently, ENG Capital has engaged the Reserve Bank of Zimbabwe and other regulatory authorities in an attempt to resume its business in Zimbabwe, building on the excess assets that were returned to the directors and shareholders.

It has since been established that Allied Conveyors, a firm which manufactures mining equipment for both the local market and the region, has been handed over to the directors.

Despite pursuing a listing on the local bourse, ENG contends that it must be given back its bank, which has since been merged into Interfin Banking Corporation.

According to the ENG boss, the merger of Century Bank, which was an ENG subsidiary, with other financial institutions was irregular and illegal since it was in contravention of the Anti-Corruption Act of Zimbabwe.

Added Mr Muponda: “CFX Bank was a product of an irregular and illegal merger between Century Bank (an ENG subsidiary) and CFX Bank. I challenged that merger on various grounds highlighting its illegality and irregularity through High Court case HC 6244-04.

“My co-director, Nyasha Watyoka, supported this motion by filing a supporting affidavit. We and our lawyers — Messrs Ziweni and Company — were specified as a way to incapacitate us from completing HC 6244-04.

“As you are aware, according to the Anti– Corruption Act of Zimbabwe, assets of specified persons cannot be legally sold, bought or disposed of as they are part and parcel of an investigation and evidence in legal proceedings.

“In short, according to the Zimbabwean law, you cannot sell assets which are subject to legal proceedings which assets would be required as evidence in those proceedings.”
ENG is still challenging the process in the courts.

The Affirmative Action Group (AAG) recently urged the central bank to reinstate the ENG licence.
In the aftermath of the banking crisis, most of the banks whose balance sheets were considered to be wobbly were placed under curatorship.

Trust Bank, Royal Bank, Time Bank and Barbican Bank have been re-licensed.
Royal and Trust Banks have resumed operations while Time Bank and Barbican Bank are still making preparations to open their doors to the public.- The Sunday Mail

ENG Capital Holdings Limited Public Notice

2011-04-23T22:57:00.001-04:00

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

2011-04-21T01:23:00.001-04:00

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

2011-04-12T16:14:00.002-04:00

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

Contact
http://www.facebook.com/engcapital
http://twitter.com/engcapital
www.engcapital.ca

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

2011-04-06T15:51:00.002-04:00

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

2011-04-06T15:42:00.004-04:00

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.

Interfin Banking Corporation fraud on CFX Bank unpacked 2 of 5

2011-03-27T17:35:00.003-04:00

Interfin Banking Corporation fraud on CFX Bank unpacked 2 of 5
Interfin Bank Directors led by MD Raymond Njanike and Chairman Farai Rwodzi are getting increasingly desperate to hide their tracks on the illegal and irregular take over of Century – CFX Bank assets which were illegally transferred into Interfin Bank and rebranded Interfin Banking Corporation. Their lastest stunt of claiming to ``liquidate`` CFX Bank is one such effort to conceal their fraudulent take over of Century – CFX Bank assets and stealthily transferring them into Interfin Bank and rename the resultant entity Interfin Banking Corporation.

After claiming a successful merger as anticipated in this report by Dumisani Ndlela http://www.financialgazette.co.zw/companies-a-markets/4525-cfx-fs-to-lose-bank-for-bigger-entity.html in June 2010 only 9 months later CFX Bank now rebranded Interfin Banking Corporation is being liquidated http://www.newsday.co.zw/article/2011-03-14-cfx-to-windup-operations . This only proves underlying ownership dispute between ENG Capital ,Gilbert Muponda and Interfin Bank alongside MD Raymond Njanike and Chairman Farai Rwodzi .

If the merger was successful why would Interfin Directors led by MD Raymond Njanike and Chairman Farai Rwodzi claim to liquidate CFX Bank when in reality CFX Bank is now Interfin Banking Corporation since all its branch network and asset have been transferred into Interfin Banking Corporation and rebranded accordingly in an effort to hide the fraudulent seizure of Century Bank which was renamed CFX Bank then now rebranded Interfin Banking Corporation. This is an effort to avoid paying legitimate liabilities owed to ENG Capital for its assets illegally incorporated into Interfin Banking Corporation.

There can be no talk of liquidating CFX Bank since CFX Assets have been merged with Interfin and effectively transferred into Interfin Banking Corporation and rebranded Interfin Banking Corporation in an a deliberate fraudulent effort to hide the illegal take over of Century – CFX Bank assets and network.

Specifically the assets below have been stripped from CFX Bank and transferred into Interfin Banking Corporation. IT and Computer Systems
- MoneyGram Money Transfer Franchise and System
- Branch Network
- Customers , clients and loan Book
- International Correspondent Bank Network
- Management and Staff
- Leases,Contracts and general goodwill
- Buildings and offices
- ZSE Listing Spot

CFX Bank had the most advanced IT and Computer System in Zimbabwe banking and this has been looted by Interfin and transferred into Interfin Banking Corporation.
The ENG Capital claim remains focused on MD Raymond Njanike , Chairman Farai Rwodzi , Interfin Holdings limited and Interfin Banking Corporation since they are they ones who took over the assets and liabilities of CFX –Century Bank. Their fraudulent attempt to mislead the investing public and depositors that the ownership dispute will disappear just because they are attempting to fake a liquidation of a Bank whose assets they have transferred into another entity is totally irresponsible and disingenuous.

MD Raymond Njanike , Chairman Farai Rwodzi , Interfin Holdings limited and Interfin Banking Corporation continue to mislead the public and other stakeholders by devising fraudulent schemes as a way to avoid settling what is due to Gilbert Muponda and ENG Capital.

Interfin Bank and its Directors led by Farai Rwodzi are guilty of misleading customers and investing public into buying worthless Interfin Holdings shares .Interfin owes Gilbert Muponda and ENG Capital US 15.4 million for the 309 million shares fraudulently converted from Century Bank into CFX Bank then Interfin Banking Corporation. And they are trying to escape paying this liability by claiming CFX Bank is being liquidated.

Interfin Bank Directors particularly MD Raymond Njanike and Chairman Farai Rwodzi are acting irresponsibly by failing to handle a legitimate claim and responding by plastering a cracked wall which tantamount to the proverbial ostrich putting its head in the sand.

Interfin Banking Corporation fraud on CFX Bank unpacked - 1 of 5

2011-03-24T18:35:00.007-04:00

Interfin Baning Corporation fraud on CFX Bank unpacked - 1 of 5

According to All Africa website CFX Bank merged with Interfin Bank and the merger was approved http://allafrica.com/stories/201011180051.html . However if the merger was approved by all the regulatory Authorities then why would Interfin try to liquidate a Bank which it merged with. It clearly doesn’t make any sense to liquidate a Bank which has already been merged with another . Its not legally possible and its practically fictitious to claim to liquidate a Bank which has already merged with another resulting in the formation of a new entity.

Interfin Banking Corporation Zimbabwe is a product of a fraudulent merger between Interfin Merchant Bank and CFX Bank which was subsequently renamed Interfin Banking Corporation after another irregular merger between Century/CFX Bank Limited and Interfin Bank Zimbabwe. Any further transaction or re-organization or restructuring will not change the facts that Interfin Banking Corporation has a disputed ownership due to the presence of CFX Bank assets in its DNA composition.

The so-called liquidation of CFX Bank is nothing but a fraud being perpetrated by Interfin Holdings Directors led by MD Raymond Njanike and Chairman Farai Rwodzi. There is no liquidation taking place whatsoever since all the CFX assets have already been ``merged`` and transferred into the new entity now renamed Interfin Banking Corporation. This is an effort to hide the tracks of the original fraud which is being challenged under High Court case HC 6244-04.This is an effort to escape legitimate liabilities brought about by Interfin`s unwise and greed move of trying to grab CFX Bank assets.

Interfin can not fully capitalize a Bank and then liquidate the same bank all within a year .According to another report titled Interfin Holdings Fully Capitalises CFX Bank Published on 13 January 2010 - http://allafrica.com/stories/201001130248.html . This does not add up and only provides further evidence that Interfin Banking Corporation are involved in fraudulent transaction and the various movements are meant to hide the tracks and cleanse an otherwise illegal and underhand deal.
There can be no talk of liquidating CFX Bank since CFX Assets have been merged with Interfin and effectively transferred into Interfin Banking Corporation and rebranded Interfin Banking Corporation in an a deliberate fraudulent effort to hide the illegal take over of Century – CFX Bank assets and network.
Specifically the assets below have been stripped from CFX Bank and transferred into Interfin Banking Corporation. IT and Computer Systems
- MoneyGram Money Transfer Franchise and System
- Branch Network
- Customers , clients and loan Book
- International Correspondent Bank Network
- Management and Staff
- Leases,Contracts and general goodwill
- Buildings and offices
- ZSE Listing Spot

CFX Bank had the most advanced IT and Computer System in Zimbabwe banking and this has been looted by Interfin and transferred into Interfin Banking Corporation.
The ENG Capital claim remains focused on Interfin Holdings limited and Interfin Banking Corporation since they are they ones who took over the assets and liabilities of CFX –Century Bank. This includes the CFX Bank Holdings Zimbabwe Stock Exchange listing which was taken over and renamed Interfin Holdings Limited all in an elaborate effort to hide the irregular and illegal take over of Century – CFX Bank.

CFX Bank liquidation a clear Fraud by Interfin Banking Corporation Board

2011-03-23T21:47:00.002-04:00

Over the last 4 months the ENG Capital lawyers and legal Advisors had requested that there be no further statements or public articles regarding the illegal ,irregular and fraudulent merger between CFX Bank and Interfin Bank which was renamed Interfin Banking Corporation. Their hope and expectation was that Interfin Management and shareholders will do the honourable thing and propose a reasonable way forward. Needless to say we were disappointed as the Interfin Board of Directors and Management took our silence for foolishness and proceeded to devise a fraudulent scheme claiming to liquidate CFX Bank knowing full well that CFX Bank assets such as the Moneygram Franchise ,leases, contracts ,goodwill had been spirited into Interfin Banking Corporation. This is disgraceful coming from Bankers who are supposed to be custodians of people`s wealth and savings.

According to the media CFX Bank has been placed into liquidation due the ownership wrangle arising from the High Court case HC 6244-04 which I filed in Zimbabwe. After Interfin Banking Corporation unwisely merged Interfin Bank and CFX Bank and renamed the bank Interfin Banking Corporation they are now fraudulently claiming to be liquidating CFXZ Bank when all the CFX Bank assets such as its MoneyGram Franchise, Buildings, contracts ,employees etc have been stripped and transferred into Interfin Banking Corporation which took over Century / CFX Bank ZSE listing and renamed it Interfin Banking.

The so-called liquidation of CFX Bank is nothing but a fraud being perpetrated by Interfin Holdings Directors led by MD Raymond Njanike and Chairman Farai Rwodzi. There is no liquidation taking place whatsoever since all the CFX assets have already been ``merged`` and transferred into the new entity now renamed Interfin Banking Corporation. This is an effort to hide the tracks of the original fraud which is being challenged under High Court case HC 6244-04.This is an effort to escape legitimate liabilities brought about by Interfin`s unwise and greed move of trying to grab CFX Bank assets.

Interfin Banking Corporation Zimbabwe is a product of a fraudulent merger between Century Bank and CFX Bank which was subsequently renamed Interfin Banking Corporation after another irregular merger between Century/CFX Bank Limited and Interfin Bank Zimbabwe.

Interfin Bank and its Directors led by Farai Rwodzi are guilty of cozening customers and investing public into buying worthless Interfin Holdings shares .Interfin owes me and ENG Capital US 15.4 million for the 309 million shares fraudulently converted from Century Bank into CFX Bank then Interfin Banking Corporation. And they are trying to escape paying this liability by claiming CFX Bank is being liquidated.

Interfin Bank Directors particularly MD Raymond Njanike and Chairman Farai Rwodzi are acting irresponsibly by failing to handle a legitimate claim and responding by plastering a cracked wall which tantamount to the proverbial ostrich putting its head in the sand.

Interfin Board and Management are risking shareholder funds and investor funds by their current tough guy mentality.

The claim by ENG Capital and myself against Interfin and its shareholders is indisputable and must be settled. Interfin must not take the silence for foolishness we expect them to act responsibly.

Contact ;
Email; gilbert@gilbertmuponda.com
Facebook: http://www.facebook.com/muponda
Website; www.gilbertmuponda.com

Lawyers in Zimbabwe & Africa

Gutu and Chikowero Attorneys at Law

160 Samora Machel Avenue West edere
Box 2480
Harare
Tel: 04-774271
Tel: 04-759876/7
Tel: 04-748585
Fax: 04-759877
http://www.gutulaw.co.zw

Mutamangira and Associates
2ND Floor Travel Plaza
Cnr Mazowe/J. Chinamano
Harare
Telephone: +263 4 702436 & 799249
Premicell: +263 914 168 951 – 2
http://mutamangira.com

Lawyers in Canada and rest of the World

SVN Law Office

1315 Finch Avenue West, #410
Toronto, Ontario
M3J 2G6

Tel: 416 638-0921
Fax: 416 638 8626

http://www.snvlawoffice.com

Zimbabwe needs stable political and economic environment - Zimbabwe Entrepreneurial Infrastructure Series

2011-02-07T20:42:00.001-05:00

In emerging markets such as Zimbabwe the power of entrepreneurship to improve lives is at times limited and hindered due to high political risk arising out of fast moving and unpredictable political developments. Whilst theoretically there are attempts to separate politics from business, finance and investment in reality they are all related and cant be easily separated. Political risk is one of the most important factors affecting the creation of properly developed entrepreneurial infrastructure which Zimbabwe and Africa urgently need.

The country’s political leaders have a specific obligation to establish political and social stability as a first step towards establishing solid entrepreneurial infrastructure. This includes predictable application of rule of law and a stable regulatory environment.

Due to globalization it is critical for any emerging market to seek normal trade relations with other nations especially the developed nations who form the critical markets. Any restrictions such as embargoes or sanctions can negatively affect the entrepreneurial infrastructure and this places an additional burden on political leaders to always act in ways which do not attract embargoes or trade restrictions as this negatively affects the entrepreneurial development potential and hinders economic development.

According to Wikipedia Political risk is defined as “Broadly, political risk refers to the complications businesses and governments may face as a result of what are commonly referred to as political decisions—or “any political change that alters the expected outcome and value of a given economic action by changing the probability of achieving business objectives.” .

Political risk faced by firms can be defined as “the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket factors as macroeconomic and social policies (fiscal, monetary, trade, investment, industrial, income, labour, and developmental), or events related to political instability (terrorism, riots, coups, civil war, and insurrection).” Portfolio investors may face similar financial losses. Moreover, governments may face complications in their ability to execute diplomatic, military or other initiatives as a result of political risk”

For investors, political risk can simply be defined as the risk of losing money due to changes that occur in a country’s government or regulatory environment. Acts of war, terrorism, and military coups are all extreme examples of political risk. Expropriation of assets by the government – or merely the threat – can also have a devastating effect on share prices.

Late last decade Venezuela’s leader Hugo Chavez abruptly announced plans to nationalize CANTV, the local phone company. The Company’s share price collapsed almost 50% before the details of Chavez’s plans or ideas emerged.

As in most markets Investors sell first and ask questions later on the exact details of the proposed plan. This situation is very similar to Zimbabwe’s indigenization 51% rule. The rules and regulations have been interpreted and mis-interpreted variously leading to an unease investment atmosphere which has dampened investor sentiment especially on the Zimbabwe Stock Exchange.

Whilst the Minister responsible for the Indigenization rules and regulations Minister Saviour Kasukuwere has issued various statements on the Act the regulations remain mis-understood and are viewed as a significant political threat on potential and current investment. This situation needs to be urgently addressed through highly organized investor road-shows and investment conferences whereby the Minister and other relenant senior officials clearly explain what these rules mean and how foreign investors can feel assured that their investments wont be seized.

These investment road-shows and conferences will also give the Minister and other senior Government officials an opportunity to clarify the current business disruptions and invasions which appear aimed at foreigners. What is the official Government policy on this. And what is Government doing to ensure that these acts and activities will not be taken as officially sanctioned.

In business and investment perceptions count for everything with each day that passes with business disruptions not officially denounced it sends a bad signal to investors and the current efforts to rebrand the country will be viewed as mere sloganeering and lip service.

High political risk makes doing business in a country very expensive and capital comes at a huge premium whilst assets in the country can only be sold at a discount due to the political-risk-premium which investors demand.

Political risk insurance is available against a broad spectrum of risks, including non-payment products for financial institutions, expropriation, war and political violence, cancellation of operating licences, exchange transfer problems, import and export embargoes .This adds to cost of doing business in the country and it discourages entrepreneurs and thus negatively affects the entrepreneurial infrastructure.

All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital www.gmricapital.com
Contact
http://www.facebook.com/engcapital
http://twitter.com/engcapital
www.engcapital.ca

More first generation entrepreneurs required - Zimbabwe Entrepreneurial Infrastructure Series

2011-02-06T20:06:00.002-05:00

South Africa, Zimbabwe, Botswana and a several other African countries have come up with various affirmative action programs and broad based black economic empowerment programs (BEE) and indigenization .Given the historical economic imbalances these programs are relevant and imperative for Africa to attain a sustainable economic advancement necessary to uplift the standards of living on the continent.

However the concept of grabbing, seizing and invading businesses can not be mixed with noble broad based economic empowerment program. Africa needs to devise policies which can create entrepreneurial infrastructure which will encourage entrepreneurship and not business invasions, seizures or grabbing. This challenge requires more first generation entrepreneurs.

First generation entrepreneurs (FGE) are the ones who break the ground within their social grouping (could first from family, class, neighbourhood etc) and enter into business. They do not inherit the business from family (father ,mother or rich uncle etc).These are the individuals who have a dream and pursue it and do whatever it takes to set up their business from scratch. These are the people who are required for the economic empowerment to succeed. It cannot succeed by just taking established businesses and dishing it to those who are “deemed to qualify” under whatever criteria.

Setting up a business from scratch is not that easy, some people may even want you to fail for no apparent reason. And yet others when u succeeds may want to grab, seize or invade your business. Part of the entrepreneurial infrastructure means the provision of a secure legal environment where contractual obligations can be enforced and property rights respected. This will encourage other entrepreneurs.

First generation entrepreneurs provide next generation of growth companies which are different from established businesses. Most first generation entrepreneurs amplify the economic and social impact of important new ideas and discoveries which are converted from dreams into reality and new wealth.

African is in need of first generation entrepreneurs who are forced to come up with their own roadmaps to success as they create a path which no-one close to them has travelled. In the process they create a road map for the future generation to follow. This process becomes part of the entrepreneurial infrastructure which makes it easy for others within that community or family to enter into business.

Zimbabwe in particular and Africa in general is in desperate need for First generation entrepreneurs are ready starting from scratch and go on to translate their dreams into reality. This trait of starting things from scratch can be learnt and be taught and can rub off to become cultural and become a standard. This is what comes naturally from having well developed entrepreneurial infrastructure. From an early age young individuals are groomed to become entrepreneurs and learn from others around them who are part of the entrepreneurial infrastructure. This does not happen by accident but rather through careful and deliberate policy formulation and implementation which aims at creating a generation of globally competitive entrepreneurs who appreciate to start a business from scratch and see it become a world class brand.

Successful entrepreneurs need courage and have to have the mentality to do something that's never been done before and have fun whilst doing it. The mere fact of invading or seizing someone’s business indicates lack of entrepreneurial infrastructure and entrepreneurial spirit. Whilst a business can be legally take over let it be the exception rather than the national motto which specialize in taking over businesses. The national motto should be to create businesses from scratch with the state creating the conducive environment as part of the entrepreneurial infrastructure

A properly developed entrepreneurial infrastructure provides business advice and mentorship, market intelligence, entrepreneurship education, seed capital and access to critical talent, customer and partnership networks and joint venture opportunities which help aspiring entrepreneurs realise their dreams.

Several studies indicate that people who grew up within and around families who owned a business have a higher chance to own a business themselves. This is true in Zimbabwe and Africa generally. A majority of entrepreneurs grew up with and around business minded people and naturally certain skills and capital come natural to them. This is part of the entrepreneurial infrastructure which is required but it all starts with the first generation entrepreneur who creates a path that becomes a roadmap for future generations.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital www.gmricapital.com
Contact
http://www.facebook.com/engcapital
http://twitter.com/engcapital
www.engcapital.ca

Women entrepreneurs must be supported Zimbabwe Entrepreneurial Infrastructure Series

2011-02-02T23:15:00.001-05:00

Africa’s economic independence aspirations require more women participants to be involved in business ownership and entrepreneurship. Normally innovation drives entrepreneurship which starts first with the vision then the mission which leads to the creation of a business. There is no natural law which excludes women in business but rather social construction and family values have served to exclude women from benefiting from entrepreneurial infrastructure to establish their own businesses.

Globally in general and in Africa particularly historically, entrepreneurship has been a male-dominated pursuit which has been supported by centuries of social construction values which have sought to exclude women from meaningful economic activities. Zimbabwe should take a lead in the current economic empowerment exercise and ensure women are not relegated to spectators but significant participants.

In a family set up entrepreneurial talent, spirit and skills may be possessed by a woman who may be a sister, mother or daughter. This calls for the male relatives who may be the brother, husband, father to be prepared to support the female relative pursue her entrepreneurial dreams. The support to the female relatives is critical for the woman entrepreneur who may face many other hurdles in the business world including discrimination.

The keys to growing a family business support and maintaining healthy family relationships are trust, strong family values and open communications. In Zimbabwe due to our cultural upbringing man normally take the lead in most things but in the entrepreneurial endeavour in the family set up it may be best that the man play the supporting role whilst the woman is the “main actor”.

A lacking important part of the entrepreneurial infrastructure is to empower economically marginalised women to empower themselves by offering practical resources which make it possible for women to enter business and succeed. This requires an adjustment on how woman entrepreneurs and business woman are viewed.

The family system led by the male spouse has to play a positive role in increasing business confidence, facilitating equal access to economic and productive resources for women, and to facilitate poverty eradication, utilising gender empowerment principles.

Before an individual takes the plunge to own a business based on what could be one’s passion, hobby and possibly business skills it takes a lot of courage, determination and the acceptance of continuous hard work. In addition it requires solid support of the whole family for the business to succeed. This challenge is even higher for a woman since in the African society woman have historically played a more reserved role in the family’s economic affairs.

As part of the Zimbabwe and Africa entrepreneurial infrastructure there is need for policy shift which helps set up organizations that provide business training and networking opportunities for women of diverse occupations and backgrounds. This is in recognition that women are capable entrepreneurs if given the support and resources needed to start a business. The general reduced numbers of women in business is a clear disadvantage for Africa to compete at a global scale since almost half of the population is arguably excluded from accessing the limited entrepreneurial infrastructure.

At times role confusion in family and business can cause communication problems that can hurt the business and wreck family relationships. This is normally a result of poor communication at the initial stages when one partner decided to enter into business with the other not being so supportive or “understanding”. One possible way to address this is for families to focus on how everyone can benefit if the business succeeds. Then support whoever has the passion, skills and spirit for entrepreneurship even if that person happens to be a woman.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
Contact
http://www.facebook.com/engcapital
http://twitter.com/engcapital
www.engcapital.ca

The funding Challenge - Zimbabwe Entrepreneurial Infrastructure Series

2011-02-01T23:02:00.001-05:00

Africans and Zimbabweans have been involved in business transactions for centuries somehow they have been overtaken by the rest of the world in terms of building successful businesses. This trend can be reversed through careful steps aimed at promoting and supporting entrepreneurship. When starting a business family support is critical for success. If married then spousal support is critical for the venture to succeed. This support is critical because those immediately close to the entrepreneur have the burden of being forced to support someone’s “dream”.

Any entrepreneurial adventure will require some form of capital. In Africa generally and Zimbabwe in particular capital is really hard to come by even if one has a solid business proposition. The starting point for the entrepreneur should be to start as early as possible to solicit support of those around you. Simply start sharing your general ideas about your business “dream” with those around you.

Some will be encouraging but most will discourage you but don’t be discouraged instead try to pick their brains and understand their source of fears which will normally help you properly plan for the rocky road ahead.

If you listen carefully to the discouraging voices within that are some of the answers that will see your dream come true.

Family support is critical as the entreprenuer is normally faced with limited resources and has to tap into family or relatives resources to see the vision develop into a viable business. When entrepreneurs start their venture normally they resort to “ bootstrapping finance” which is entirely based on family or close friends support.

According to investopedia “A situation in which an entrepreneur starts a company with little capital. An individual is said to be bootstrapping when he or she attempts to found and build a company from personal finances or from the operating revenues of the new company.”

Entrepreneurs have long relied on family for help in launching new businesses, often after exhausting other resources such as personal overdrafts and personal savings, and before seeking out for bank loans or other institutional funding.

Compared to using bank loans or Angel investor funds, bootstrapping can be beneficial because the entrepreneur is able to maintain control over all decisions which allows them to shape the company. The risk however, this form of financing may place increased unnecessary financial risk on the entrepreneur. Additionally bootstrapping may not provide enough capital for the new venture to become successful at a reasonable pace especially in Zimbabwe with its fast changing operating environment.

Obviously bootstrapping involves increased risk for the founders, the absence of any other shareholder gives the founders more freedom to develop the company in the best direction they see fit with quick decision turn around. Most successful companies were founded this way with the entrepreneur starting off from humble beginnings until the business concept could attract additional capital which normally comes with additional conditions and dilution of control.

It must be noted bringing in outsiders can be beneficial. Outsiders can provide financial oversight, accountability for carrying out tasks and meeting important targets and milestones, and many can even bring highly valuable business contacts and experience to the table which will enable the business to develop much faster.

Once the entrepreneur starts using other people’s money there is greater need for accountability and responsibility. This includes having reasonable forecasts and expectations which should be clearly and accurately communicated to those who would have given you support or whom the entrepreneur is seeking funding from.

It is always a good idea to make a point of clearly explaining to friends and relatives that you couldn't guarantee their investments would pay off and that there is chances your business may fail even though you feel the venture is viable . The entrepreneur has to educate people on the risk profile of the business. Do not didn't accept funding from people who didn't understand that.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
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Direct Education system towards Entrepreneurship- Zimbabwe entrepreneurial infrastructure series

2011-01-30T21:06:00.003-05:00

Direct Education system towards Entrepreneurship- Zimbabwe entrepreneurial infrastructure series

One of Africa’s leading science and business universities National University of Science and Technology (NUST) in Bulawayo Zimbabwe pioneered the development of widespread acquisition of practical skills through the implementation of the degree programs with a mandatory one year industrial attachment.

This was a critical and transformational approach to higher education as it immediately equipped students with practical real world work experience and most graduates easily secured jobs after completion of studies. But the times have changed the jobs are no longer readily available therefore Universities need to increasingly focus on moulding students into Entrepreneurs.

This could include creation of technology parks and business incubation centres which will naturally form part of the entrepreneurial infrastructure which is missing in most of Africa generally and Zimbabwe in particular.

According to Wikipedia “Business incubators are programs designed to accelerate the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts. Incubators vary in the way they deliver their services, in their organizational structure, and in the types of clients they serve.”

These services offered by Business incubators are clearly needed and can be offered through-out the country from the various Universities. Universities and Technical colleges must take the lead in this area as graduates transform from job seekers to job creators.

The Zimbabwe Educational system needs to step up and now move with the times and evolve to start churning out graduates who are ready to create jobs and not seek jobs which are non-existent. This is not an easy challenge but it can be done over the medium term with proper planning and strategic focus.

Zimbabwe’s educational system needs to be in line with the national vision of economic empowerment and indigenization. The system needs to be properly developed and enshrine values which do not encourage looting, grabbing or seizing businesses as a way to acquire wealth. This has to be done at an early age and through out the educational system which will make it clear that economic empowerment is here to stay but it must be achieved to legitimate and acceptable means which individuals properly equipped with entrepreneurship skills backed up by an appropriate entrepreneurial infrastructure.

Some of the challenges as witnessed by business invasions and enterprise disturbances are a result of limited information and education on how one can legally and legitimately build a business even when faced by an uneven playing field.

It is clear there are informational gaps and execution shortfalls which has led to a majority of individuals to believe that the only way into big business is through political patronage and other dubious means. These gaps have to be addressed in form of proper education curriculum which focuses on creating entrepreneurial candidates who will become part of the entrepreneurial infrastructure.

Such educational programs can not assume that everyone can be an entrepreneur but should give every student a chance to choose that path and also acquire the critical entrepreneurial skills at early stages such that once one completes studies they have all options on the table.

Entrepreneurial skills are now a critical survival skill in the current Zimbabwe especially given the drive towards economic empowerment. The idea of economic empowerment is ideal and noble but can not succeed if the potential beneficiaries are not properly trained and equipped to handle the challenges that comes with running any enterprise. Any effort which ignores the need for the educational system to close informational and skills gap will result in the program failing and creating a vicious poverty circle instead of empowering.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
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You don’t have to be old to start a business!! - Zimbabwe entrepreneurial infrastructure series

2011-01-29T21:54:00.001-05:00

Entrepreneurs are a source of great economic activity and prosperity in many communities and nations. Africa needs to do a lot more to develop entrepreneurship from a very early age.

There has been a mistake to try to link age to competence or success when it comes to business and this has resulted in Africa in general having depressed entrepreneurial activity due to the open hostility shown to young entrepreneurs in Africa generally and Zimbabwe in particular. There is a general tendency to try and shut out and block young people who are seeking to enter into business. Often one is encouraged to seek a job and not to create one.

An entrepreneur is widely defined as a person who has possession of a new enterprise, venture or idea and is accountable for the inherent risks and the outcome. That individual is prepared to launch a new venture or enterprise and accept full responsibility for the outcome ,accepting both the risk and the reward.

Such people are in great demand in Africa generally and Zimbabwe and South Africa in particular due to the macro-economic conditions prevailing in those 2 countries which require entrepreneurs to create new ventures.

It is important for Zimbabweans from a very early age to be properly equipped with necessary entrepreneurial skills and spirit backed by the necessary entrepreneurial infrastructure needed to ensure success. From an early age it must be instilled that value and wealth is created from utilizing resources and skills around you and not from looting , grabbing or invading.

There a certain common words frequently used to describe individuals with entrepreneurial flair and spirit these include mavericks, innovators, failures, Tycoons, pathological liars, risk takers, self made business people, successful, charismatic. It is clear in these words age really has nothing much to do with it. In short you don’t need to be any particular old age to start a business and succeed.

There are well known qualities which are usually found in most entrepreneurs ,these include creativity, risk taking, uniqueness, business savy, developing potential, adaptability. It is these qualities which makes one a successful entrepreneur and not one’s age. Age clearly has no direct bearing on the success of true entrepreneurs even though experience may be relevant. One tends to get more experience the older they get but that alone can not make one a great entrepreneur.

African Governments should devise policies to develop a culture of entrepreneurial thinking. This can be done in a number of ways: by integrating entrepreneurship into education systems, formulating laws which legislate to encourage risk-taking ,provide funding , and national campaigns which are targeted at the young and youthful who form a pool of potential entrepreneurs and generally create the required entrepreneurial infrastructure.

It appears there are two natural age peaks correlated to entrepreneurship – mid to late twenties and mid-forties ,even though there is no general rule. Some studies note that being a younger founder greatly improves your chances of success in a venture. It’s normally easier to get free press coverage when you’re younger which gives the individual free publicity and helps build a brand and that encourages people to invest in you or your venture.

According to Wikipedia “Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Start-up Company);” .

From the above definition it is clear one must still be very young to take such risks and have the energy and drive to see through an economic adventure meant to create value and wealth. This points to the conclusion that Africa should invest more at a very early age possibly from 9 years old to instil values and the spirit of entrepreneurship in its population. Form a very early age children must be taught and encouraged to become entrepreneurs.

According to various studies and empirical evidence acts of entrepreneurship are often associated with true uncertainty, particularly when it involves bringing something really valuable to the world, whose market never exists.

In addition, even if a market already exists, there is no guarantee that a market exists for a particular new player who is being promoted by the entrepreneur. This indicates that the African society must be willing to teach and accept risk taking as normal and productive behaviour.

If the various Economic empowerment as defined by BEE Laws in South Africa and Indigenization laws in Zimbabwe are to succeed entrepreneurship and business concepts need to become part of the vocabulary and curriculum at very tender age preferably before children enter high school. They need to clearly know that entrepreneurship is acceptable as a way of life and society will accept young people who venture into it and they will be rewarded once they succeed.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
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Zimbabwe Entrepreneurial Infrastructure Series - Nurture entrepreneurial culture

2011-01-28T22:26:00.001-05:00

Africa particularly Zimbabwe and South Africa have embarked on various economic empowerment programs which are attracting attention at a global scale. Africa’s march towards economic freedom needs to be driven from an informed point of view which takes into account several short comings and how they can be overcome.

One such area which needs attention is the cultivation and development of an entrepreneurial culture which will encourage locals to seek to build own businesses rather than grab those established by others. The evidence suggests that the interaction between culture and entrepreneurship is stronger in the case of some ethnic groups than others. A relevant question is what are the chances of an individual starting a business when you have never had a close relative or anyone you know for that matter start one?

In this context Culture refers to the enduring set of values of a nation, a region, an organization or any readily identifiable group of people. Entrepreneurship is defined as the act and process by which societies, regions, organizations, or individuals identify and pursue business opportunities to create wealth as it relates to assuming risk with the hope of getting a reward.

In some municipalities, entrepreneurs enjoy high social status, regardless of whether they are already successful; elsewhere they are looked down upon and other occupations are more admired.

Globally Researchers have explored the effect of national, regional, and organizational cultures on wealth creation through new venture creation, innovation, and risk taking. It appears certain places have more chances of developing entrepreneurship due to the presence of entrepreneurship infrastructure and culture.

This means for a continent like Africa which is relatively behind in terms of building home grown businesses there is need to Governments to embark on institutional building capacity which helps develop entrepreneurial culture and spirit.

It is this spirit which will then help feed into the economic empowerment endeavour. In the absence of the required entrepreneurial infrastructure and spirit locals maybe be misled to believe that one can only own a successful business by invading or grabbing a successful business.

This must be corrected from day one that entrepreneurship is an endeavour which requires discipline and effort which may in turn create a valuable business and create new wealth. It must be made clear that new wealth can’t be created by destroying current wealth through ill thought out policies.

Development of an entrepreneurial culture and infrastructure helps develop a feedback mechanism appears to be in place: places with more entrepreneurs tend to attract still more entrepreneurs. Once an entrepreneurial culture takes root in a certain area or country, it typically spreads locally gradually, as more people learn about business and begin to feel attracted by it – even if it doesn’t yield an immediate or certain rewards or profit more individuals are encouraged into entrepreneurship.

The Culture and spirit of entrepreneurship is critical to succeed in the 21st Century Economy. Africa in general and Zimbabwe in particular need to pay particular attention in developing this culture to avoid missing opportunities of the 21st Century which will be reaped by those nations with well developed Entrepreneurial infrastructure , culture and spirit .

From an early age children need to be imparted the importance of working hard, taking risk and expecting rewards and not to expect to reap where they didn’t sow by just seizing an established business. Such behaviour is the anti-thesis of an entrepreneurial culture which Zimbabwe must develop to ensure the success of the Economic empowerment program.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
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Zimbabwe Successful entrepreneurship never an accident - Entrepreneurial Infrastructure Series

2011-01-27T23:27:00.001-05:00

The world over including Zimbabwe and Africa Entrepreneurship is rarely a solo enterprise, it requires a solid support ecosystem built to encourage and nurture risk taking and enterprise creation. “Smart” people learn from each other, and an infrastructure for entrepreneurship naturally encourage connection between aspiring entrepreneurs and like minded individuals.

For Africa and Zimbabwe to properly leap into global competitiveness there is greater need to raise awareness of what has been lacking over the last 50 or so years . As an example Ghana and South Korea and Malaysia were almost at equal stages of development 50 years ago .

Yet today they are worlds apart with Korea being home to a host of world leading firms such as Daewoo ,LG, Samsung, Hyundai and many others. Africa has not managed to create such huge corporations despite having serious natural resource base.

Partly the answer lies in the lack of entrepreneurial infrastructure. These are social, economic, and political factors influencing entrepreneurship. These involve creation of an enabling environment and support system to allow entrepreneurs to flourish with minimum hindrance.

This entrepreneurial infrastructure includes:
(a) public resource endowments of basic scientific knowledge, funding mechanisms, and a pool of competent and educated labour,
(b) proprietary research and development, manufacturing, marketing, and distribution functions by private entrepreneurial individuals and firms to commercialize their ideas for profit.
(c) institutional arrangements to legitimate, regulate, and standardize a new ideas (products) goal should be to attract a large number of “smart “ individuals and then to get out of their way and let them focus on building great ventures.

Risk taking will and ability has to be encouraged and nurtured. Unplanned creativity is a natural trait of entrepreneurship which should not be controlled by the state or Government Authority in as far as an entrepreneur is creating an enterprise which provides a service or product that serves a need.

Unplanned creativity can be the most critical driver of economic prosperity success. African governments need to put their faith in the ability of smart people to build their own economic futures through building businesses that serve the community they live in. As noted above smart people learn from each other and through that process new ventures and businesses are formed from simple interaction between smart people who are driven.

Zimbabwe in particular and Africa in general should encourage aggressive and imaginative local entrepreneurs in creating an infrastructure for the new knowledge-based economy. This must be targeted at encouraging local home grown entrepreneurs and not flooding the economy with foreign traders whilst preaching local economic empowerment.

On the cultural front encouraging the development of an entrepreneurial culture, tolerant of risk and cognizant that honourable failure is the price of ambition has to be accepted.

Sound policies and investment in infrastructure attuned to market and environmental needs will have an entrepreneurial return. Entrepreneurial infrastructure encourages and supports creative, innovative behaviour attracts smart, entrepreneurial people.

Once those entrepreneurial people come to live in an area, they will help to maintain and improve upon the “smart” physical infrastructure they need to succeed and connect with other innovative individuals and entrepreneurs to share ideas and encourage each other.

Strong commitment by Business-friendly government and established businesses to support entrepreneurs.

The creation of entrepreneurial infrastructure has the benefit of rubbing shoulders with globally competitive talent. Studies indicate that entrepreneurs who run in packs will be more successful than those that go it alone to develop their innovations.

Whilst the legal framework for Economic empowerment is being put in place there is need for Mentorship programs and entrepreneurship classes in public schools provide other means of connecting entrepreneurial individuals and nurture their talent .

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
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Zimbabwe requires Entrepreneurial infrastructure for Indigenization to succeed

2011-01-26T20:41:00.002-05:00

Whilst Africa embarks on the economic empowerment as defined by BEE laws in South Africa and Indigenization regulations in Zimbabwe the absence of Entrepreneurial infrastructure remains a challenge.

Entrepreneurial infrastructure, represents the facilities and services present within a given geographic area which encourage the birth of new ventures and the growth and development of small- and medium- sized enterprises.

The model of entrepreneurial infrastructure that they provide support to potential new business owners, owners of small growing businesses, and existing small- and medium-sized enterprises by way of assisting them with tasks, physical and monetary resources, information and knowledge.

Well funded and structures programs which provides Business Advisory Service are part of a robust Entrepreneurial infrastructure which Zimbabwe and Africa in general need to invest in.

The continent has numerous examples of once thriving enterprises which have suffered due to lack of expertise and managerial skills which could be sourced from a well developed Entrepreneurial infrastructure.

Entrepreneurial infrastructure helps to develop strong tradition of self-reliance and entrepreneurship which is critical in starting up new ventures which create employment and deliver superior services and products.

In addition Africa generally lacks the spin-off culture whereby major firms often encourage their employees to quit their jobs to start their own businesses and will sometimes even provide them with financial backing.

This is the culture that allowed Silicon Valley in the USA to develop at an amazing pace with companies feeding the entrepreneurial infrastructure and appetite by encouraging employees to quit and form own businesses which often supplied products and services to their former employer.

The spin off culture normally leads to second wave of entrepreneurs once the pioneers had become successful. This is a culture which is desperately needed in Zimbabwe in particular and Africa in general to ensure that the black empowerment program does not just become sloganeering and election rhetoric but rather becomes sustainable policy which will systematically increase Africa’s middle class.

The presence of a much stronger entrepreneurial infrastructure will naturally make it easier to attract Foreign Direct Investment as many well equipped locals will be available to partner foreigners and achieve desired and regulated ownership thresholds.

In the physical realm, for example, it is hard to imagine life without roads, communications networks, airports, ports, sewer systems and electricity grids. Since they are defined for their “public good” nature, government plays a central role in financing, if not operating, such infrastructure facilities. It is taken for granted that the Government must install these. It should not stop on these alone the presence of rule of law, respect of property rights come as part of the Entrepreneurial infrastructure package.

Even though Economic Empowerment is a noble idea there is need to work on providing and establishing the network of support institutions, zones, centres and incubators, stimulates establishing of institutional support to small entrepreneurship and their connecting in an integral network of support institutions for the purpose of entrepreneurship advancement.

These are the Institutions which will make the economic empowerment program a success and not mere rhetoric or slogans.

In today’s business internet connectivity and availability is a critical component of the entrepreneurial infrastructure. However Zimbabwe and Africa remain mostly with limited access to the internet for budding entrepreneurs and the costs are way too high. The Internet represents perhaps the most significant infrastructure project of modern times. Its growth has been fuelled largely by competing cable and telecom providers seeking to demand for faster computational power and transmission speeds.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
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Zimbabwe should consider incentives to attract Diaspora Investment

2011-01-21T20:42:00.001-05:00

Zimbabwe should consider incentives to attract Non Resident Zimbabweans (NRZ) Diaspora Investment as efforts to rebuild the Zimbabwe Economy are intensified. Non Resident Zimbabweans (NRZ) played a critical role during the acute foreign currency shortage days through remitting millions of dollars to Zimbabwe at a time when there was no source of foreign currency.

In addition the NRZ has continued to invest through various means including real estate investments and investment in small to medium size businesses. However these efforts and contributions have largely gone unnoticed due to the lack of proper classification and categorization of the investments by the NRZ.

It has been widely reported that Zimbabwe Investment Authority (ZIA) has rejected pleas and representations by Non Resident Zimbabweans (NRZ) in the diaspora to implement NRZ -specific special concessions and tax-break to attract NRZ to unlock fresh investments into the recovering Zimbabwe economy.

Whilst the ZIA should be seen to be implementing and enforcing the rules and regulations it must also be seen to be pro-active in encouraging one source of investment for Zimbabwe that has been reliable and loyal through-out the Zimbabwe socio-political and economic crisis over the last decade. There is need for a partnership between ZIA and the NRZ.

The NRZ has been contributing in various ways including coming as tourists ,investors ,and bread winners which show deep commitment to Zimbabwe and their general interest in assisting the country remain afloat. This effort must be recognized through various ways including specific incentives meant to encourage further investment in the country.

The general trend should be that of co-operation between ZIA and the NRZ. The two need each other in terms of mobilizing investment for Zimbabwe’s economic recovery. The NRZ consists of some of Zimbabwe’s lost human capital during the socio-political crisis of the last decade and this must not be lost permanently to foreign lands.

It is ZIA’s role and responsibility to mobilize this human capital through incentives and information sessions which high light the areas of opportunities and how the NRZ should assist in mobilizing resources required in re-building the Economy.

The NRZ holds the key to Zimbabwe’s economic recovery in various ways. Besides direct investment the NRZ can also act as investment ambassadors who can encourage foreigners to invest in Zimbabwe once various Governance issues are addressed and various steps are taken to show the world that there isn’t selective application of the law and the rule of law is respected.

These are steps that take time as Zimbabwe’s decline happened over many years and it cant be fixed over night but bodies such as ZIA ,Zimbabwe Stock Exchange, Securities Exchange Commission must conduct road shows and meet the NRZ to show case the improving investment atmosphere.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for The Zimbabwean Newspaper by GMRI Capital www.gmricapital.com , Division of ENG Capital Group.
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Commodity Exchange in Zimbabwe a positive development for Zim financial and Agric sectors

2011-01-17T05:24:00.001-05:00

Commodity Exchange in Zimbabwe a positive development for Zim financial and Agric sectors

The long awaited Commodity Exchange in Zimbabwe (Comez) was finally launched last week after more than two years of planning .This is a major positive step for Zimbabwe’s financial and agricultural sectors as it will greatly assist in mobilizing financial resources required in funding agricultural products and eliminate monopolies enjoyed by various entities in marketing and purchase of agricultural products.

This development will also deepen and broaden Zimbabwe’s financial markets as the Comez is expected to start trading commodity based derivatives. This presents fresh opportunities for the financial sector.

Comez will be the clearing house that provides clearing and settlement services for financial and commodities derivatives and securities transactions.

Comez will essentially stand between two clearing participants (also known as member firms or clearing participants) and its purpose is to reduce the risk of one (or more) clearing participant failing to honour its trade settlement obligations.

Comez presence and capacity reduces the settlement risks by netting offsetting transactions between multiple counterparties, by requiring security deposit or collateral deposits (refered to as margin margin deposits held in margin accounts), by providing independent valuation of trades and collateral, by continuously assessing and evaluating the credit worthiness of the market participants , and in many cases, by providing a guarantee fund which is a back up pool of capital that can be used to cover losses that exceed a defaulting clearing participant's deposit.

The newly launched Comez is expected to play a key role in unlocking funding for agriculture and facilitate the orderly trading of commodities in Zimbabwe. Commodity Exchange in Zimbabwe (Comez) will offer spot markets, where the payment as well as delivery is immediate while there is also a futures market.

According to Wikipedia “Futures contracts, or simply futures, (but not future or future contract) are exchange-traded derivatives. The exchange's clearing house acts as counterparty on all contracts, sets margin requirements, and crucially also provides a mechanism for settlement”

Exchange-traded contracts which will be traded by Commodity Exchange in Zimbabwe (Comez)are standardized by the exchange. The contract details what asset is to be bought or sold, and how, when, where and in what quantity it is to be delivered. The terms also specify the currency in which the contract will trade, minimum tick value, and the last trading day and expiry or delivery month.

This is an agreement between two parties to buy or sell an asset at a certain time in the future for a certain price. a futures contract is a standardized contract between two parties to buy or sell a specified asset (eg. wheat ,beans ,oranges, oil, gold) of standardized quantity and quality at a specified future date at a price agreed today (the futures price)

For agricultural commodities, trading will be on the basis of warehouse receipts issued by the exchange operated or approved warehouses which guarantee the quality and quantity of products.

Comez will greatly assist in an accurate price discovery process which helps farmers and other market participants to plan and allocate resources. The Exchange will provide information and hints as to which crops have a deeper market and greatest profit margin before investment is made by the farmer or market participants.

The key advantage of the market is that it brings in more players and reduces monopoly power since new players are attracted into this market due to the increased liquidity presented by the presence of a clearing house (The Comex).

In addition the Comex is expected to bring some level of standardization related to futures markets the world over. And according to Wikipedia these include

“Futures contracts ensure their liquidity by being highly standardized, usually by specifying:
 The underlying asset or instrument. This could be anything from a barrel of crude oil to a short term interest rate.
 The type of settlement, either cash settlement or physical settlement.
 The amount and units of the underlying asset per contract. This can be the notional amount of bonds, a fixed number of barrels of oil, units of foreign currency, the notional amount of the deposit over which the short term interest rate is traded, etc.
 The currency in which the futures contract is quoted.
 The grade of the deliverable. In the case of bonds, this specifies which bonds can be delivered. In the case of physical commodities, this specifies not only the quality of the underlying goods but also the manner and location of delivery.
 The delivery month.
 The last trading date.
 Other details such as the commodity tick, the minimum permissible price fluctuation.”

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared by ENG Advisory Services and GMRI Capital (www.gmricapital.com ), Divisions of ENG Capital Group.
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Zimbabwe ready for an Alternative Investment Exchange market

2011-01-13T17:22:00.001-05:00

The Zimbabwe Stock Exchange (ZSE) has had a very few new listings over the last 24 months ,a situation that is likely to continue if now proactive steps are taken to encourage more Companies to list of the ZSE. One immediate and practical step which should be considered is the development of an Alternative Investment Market to list firms which do not meet ZSE requirements but have potential and ambition to list in the short to medium term. This market will act as a preparatory stage for an eventual listing on the ZSE .

This market will allow small to medium sized companies ability to raise cheaper capital in form of equity and raise their public profile whilst preparing for an eventual listing on the main ZSE Board .

Exchanges provide several ways in which to take a company public which include:
• Initial Public Offering (IPO)
• Reverse Takeover (RTO)
• Direct Listing ( market introduction)

The best option for a company will depend on its financial, legal, auditing and business strategy requirements. Normally team of advisors led by the lead advisors( Investment Bank) assist the firm with this decision.

There are few areas which the firm to be listed must consider and work towards in order to be listed on the Stock market

Creating an established business with a track record is normally the starting point towards a public listing. Other relevant and important areas include ;
• Strong management team must be in place
• Growth prospects must look good for medium to long term
• Solid business plan must be in place
• Sound financial plan has to be developed
• Strategic marketing plan to keep revenues growing

The proposed alternative investment market will provide a unique trading forum for listed companies that are below ZSE ongoing listing standards. This gives small firms an opportutnity to access resources which are normally reserved and accessed by blue chip companies ;

Whilst preparing for a listing on the Alternative Investment market the entrepreneur and his team need to carefully work on the following.

• Are the key management positions filled by experienced and qualified individuals?
• Is the management team experienced and balanced, with sufficient directors and senior executives with a proven record in managing a public company who can protect investing public funds interests?

Zimbabwe’s small to medium companies will benefit from the support and visibility provided by a listing and trading environment tailored to their needs on the proposed Alternative investment Exchange market.

Zimbabwe’s financial markets are well regulated and rank amongst the top in Africa and emerging markets. The establishment of the Securities Exchange Commission has further provided more oversight and increased supervision on the capital markets which makes it ripe to add an Alternative Investment exchange since there are sufficient resources and expertise from the Securities Exchange Commission ,The Reserve Bank of Zimbabwe and the ZSE.

The alternative investment market will have simple, easy-to-read rules and streamlined filing obligations, which reduces the complexity of complying with exchange policies - giving these companies more time to focus their efforts on strengthening and growing their businesses.

Whilst seeking a listing on the proposed alternative exchange market, prospective listing candidates need to consider the following leads ;

• Is the market size for the company’s product or service sufficient to attract broad investor interest to make share value reasonable and stable?

• Is the company profitable, or has its product reached commercialization with evidence of market acceptance that can be enhanced by greater access to more resources?

• At the time of listing, will the company have sufficient working capital to carry out its business plan and meet its daily capital requirements?

Zimbabwe’s small to medium scale firms remain underfunded mostly due to the liquidity shortage in the market. This is further worsened by the listing requirements of the ZSE which are exclusionary and not inclusionary. This helps build a strong case for the need to urgently set up an alternative listing market to serve that niche of firms that are keen to list but do not yet meet the ZSE listing requirements.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for The Zimbabwean Newspaper by ENG Advisory Services and GMRI Capital, Divisions of ENG Capital Group.

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