CFX Bank ownership dispute Case Study

CFX BANK Ownership Case Study

It appears there is a misunderstanding on why I have been publishing letters relating to claim for ownership of 309 million Century/CFX Bank shares. In addition some have asked why the matter is being raised 5 years after the 309 Million shares where irregularly sold and transferred.

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

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

Several articles have been written highlighting how these 309 million shares and Century/CFX bank was grabbed from ENG Capital. Over the time we had hoped the current and previous Directors and Management of CFX Bank would reach out and try to find out what really transpired and resolve our claim. This is the normal way of doing business. If you hear someone claiming ownership of your Bank or business you are expected to confront or engage that person to verify the nature of their claim. The CFX Bank Board, Management and shareholders somehow made the arrogant decision to behave as if everything is normal and totally disregard a claim which has been documented even at High court since day one of the fraudulent merger between Century and CFX Bank.

Even the latest press comments by the Bank through an individual identified as its Lawyer it appears they want to keep hiding behind technicalities such as you should have raised the claim earlier or you are specified therefore you cant act on your own behalf. This is inaccurate and misleading.

This level of arrogance and total disregard of material facts and potential impact on investors is an attitude which must be challenged and stopped. As out lined above this matter was filed at the high court in May 2004.And over the years articles detailing the claim have been published. Any serious and responsible Board of Directors would have taken corrective action by at least engaging in negotiations. Let it be noted that had they done that at early stages this matter would have been closed by simply acknowledging that there was some injustice but however they were not aware that such a thing had happened. This would have been a reasonable and acceptable position.

However it appears the current Board and Management want to keep denying clear facts and act as if nothing was amiss. The continual reference to my specification only highlights that the people who grabbed Century/CFX Bank from me and ENG Capital are the same people who abused the law and manipulated the legal system to specify me without a hearing so that I can follow through action to block the sale and transfer of the shares.

The cases of illegal and unjust business seizures have been occurring at an alarming rate in Zimbabwe. This must be firstly documented. Those doing it must be notified and warned. Those aiding ,abetting and facilitating such business seizures must be documented and be made aware records exist of their illegal action.

Employees in affected businesses such as employees at CFX Bank are encouraged and expected to remain professional and do their best to keep the Company vibrant but must avoid being used as proxies in a shareholder fight. This is not wise.

This part of an effort to fully document and seek redress for the fraudulent transfer of 309 million shares which were used to merge Century Bank and CFX Bank. CFX Bank was created as a result of a merger between CFX Bank and Century Bank. Century Bank was fraudulently merged with CFX Bank through the illegal and irregular transfer of 309,000,000 Century Holdings shares owned by ENG Capital and Companies owned or controlled by ENG Capital. Since this was a fraudulent and illegal transfer of ENG shares the plotters of the scheme renamed the resultant bank CFX Bank dropping the name "Century" in an effort to hide their tracks and attempt to remove any link with Century.

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

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

The only recourse was that ENG had to acquire Century Financial Holdings to mitigate any potential loss of outlay on the Century Discount house acquisition. As such ENG and its associated Companies acquired a total of 52% (including the 309 million) of Century Financial Holdings making Century an ENG subsidiary.

Through our Lawyers Ziweni and Company we sought the identity of the buyer and also to clarify that the share sell was null and void as it had all whole marks of corruption, insider dealing and was being challenged by the beneficial owners of the shares. In addition the shares had been sold through a special bargain and not an open market transparent transaction. The shares were sold for an unrealistic amount of Z$ 3 billion when ENG Capital had acquired the same shares for at least Z$35 billion. This resulted in the prejudice of Z$ 32 billion to ENG Capital Creditors and Contributories/Shareholders. We also asked the Zimbabwe Stock Exchange to investigate and stop the share transfer.

These articles form part of a wider effort to ensure that Zimbabwe’s Corporate sector eventually develops to be one where shareholders are respected and the rule of law is not applied selectively in terms of Investor protection. Whilst the case study may be focused on the 309 million shares and ownership of Century/CFX Bank the facts and scenario can be applied to other businesses that were affected by similar schemes that we devised by corrupt politicians and a corrupt central Bank Governor. It is very important that such cases be clearly and completely be documented.

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

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

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

CFX Bank Zimbabwe saga - Muponda responds

NOTICE TO CFX BANK DEPOSITORS and INVESTORS

The recent article published in the Herald Newspaper on 20 September,2009, entitled (Ex- ENG Boss Causes Controversy) - http://allafrica.com/stories/200909230013.html refers.

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

The government’s lawyer’s claims, “The shares in dispute were however, disposed of by ENG liquidator to pay the depositors. Muponda skipped bail three years ago and is believed to be in the United States. He remains a specified person in Zimbabwe.”

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

As I languished in remand prison, the RBZ Governor, Gideon Gono, embarked orgy of ENG Capital asset stripping and with the assistance of the body politic gained political mileage with a sustained Muponda vilification crusade. As part of this asset stripping the 309 million shares were “bought” by Gono’s front Network Investments , Kwangari Enterprises and others.

Zimbabweans were made to believe that ENG was bankrupt and that its only assets were expensive cars. To the contrary ENG was a solid financial services company which owned a bank – Century and had other tangible assets that far exceeded the liabilities, concocted by Gideon Gono. The rebuttal by the Government’s lawyer confirms ENG Capital owned Century/CFX Bank.

Please note that the very person, Gideon Gono, who declared ENG bankrupt, is the same person who sought my specification and is the same person who then authorized the disposal of the 309 million shares. This same person was also the beneficiary of the irregular disposal of the 309 million Century /CFX shares in collusion with the Zimbabwe Stock Exchange who violated various regulations meant to protect investors in a public company.

The government further claims that, “The transaction was done in 2004”, and “in terms of the Prevention of Corruption Act, Muponda is not able to conduct any material transaction on his behalf in respect of any companies he has invested in.”

The above statement assumes that I seek relief and am pursuing my claim through the compromised and tainted Zimbabwean judicial system, which the same system is willing to be used by corrupt politicians to punish the innocent while sanitizing financial fraud by elected officials. This partisan court system was the same used strip me of my legal rights and used to brand me as a criminal without due process or the prospect of Habeas corpus.

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

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

The current events that have seen Mr John Moxon , his family and Meikles Companies being specified is the same modus operandi used by politicians as they embark on unjust self enrichments by mis-appropriating businesses using draconian legislation designed to criminalize and scandalize entrepreneurs whose political views are perceived to be at variance with their own.

As I have said there is an illusion and fallacious assumption that I wont be able to take action in Zimbabwe but depositors and investors must be cautious , be realistic and don’t take chances. Action is being taken . It is for this reason that I am advising the depositors and Investors in CFX Bank to withdraw their investments from the Bank within the next 28 days. This includes Finance Bank Zambia and their partners who are about to buy a solen asset.Its not wise.At this stage we need to find out who is aiding ,abetting and facilitating money and transaction laundering by trying to sanitize illegal and fraudulent seizure of businesses by some Zimbabwe’s politicians and Government officials. Should any one decide to remain invested in CFX Bank after the next 28 days they will only have themselves to blame if they lose out.

Yours Faithfully,

Gilbert Muponda

1-416-841-5542

Email – gilbert@gilbertmuponda.com

Skype ID – gilbert.muponda

Letter to CFX Bank Board of Directors

Board of Directors
CFX Bank
P.O.Box HG 472,
Highlands,
Harare , Zimbabwe.

15 September 2009

Gentlemen,

RE ; 309 MILLION CENTURY HOLDINGS SHARES FRAUDULENTLY CONVERTED INTO CFX BANK SHARES

Gentlemen this letter is a reminder of your Fiduciary responsibilities as Directors of public Company. As you are aware CFX Bank is a product of fraudulent merger of Century Bank (owned by my company ENG Capital) and a much smaller CFX Bank which somehow got naming rights on the resultant Bank.

My claim is valid and legitimate and as a result will be pursued through all available options till a logical conclusion. At this stage it is important that as Board you make a choice on whether you are prepared for a pro-longed dispute. At this stage you have a duty to inform the investing public about the nature of this claim as it has a material impact on the Banks asset base and trading capacity. Failure to do so amounts to gross negligence on your part.

As the majority shareholder I intend to exercise my fiduciary duty on behalf of my self as shareholder, founder and contributory of ENG capital to fully document and seek redress for the fraudulent transfer of shares which were used to merge Century Bank and CFX Bank. CFX Bank was created as a result of a merger between CFX Bank and Century Bank. Century Bank was fraudulently merged with CFX Bank through the illegal and irregular transfer of 309,000,000 Century Holdings shares owned by ENG Capital and Companies owned or controlled by ENG Capital. Since this was a fraudulent and illegal transfer of ENG shares the plotters of the scheme renamed the resultant bank CFX Bank dropping the name "Century" in an effort to hide their tracks and attempt to remove any link with Century. ENG Capital owned a total of 900 Million shares in Century and the balance was transferred clandestinely to avoid detection of the fraud that was being perpetrated.

I may seek relief through the courts as a last resort. At this time it is important to note we have observed several instances whereby the court's orders are ignored and dis-regarded and as such we will be seeking redress in jurisdictions beyond Zimbabwe. In addition we will be seeking redress jointly and severally from certain individuals and entities that are directly benefiting and seeking to aid and abet asset grab and asset looting that is now common in corporate Zimbabwe.

The shares in question have changed the ownership at the start of my claim “with a view to evading the consequences of the litigation”.

Various transactions and Company re-organization schemes with the ultimate aim of sanitizing asset looting and illegal expropriation of our Assets. The current proposed recapitalization exercise must be viewed in the same light as it now seeks to sell our illegally transferred shares into hands of another foreign Bank which will further hide the tracks of the illegal transaction. This must be documented and stopped.

The Senior Management and Directors of CFX are co-conspirators in an elaborate scheme to defraud ENG Capital and its shareholders and contributories. They have falsely and fraudulently with others known and unknown, unlawfully, willfully, and knowingly did combine, conspire, confederate, and agree together and with each other to commit offenses against ENG Capital to commit fraud in connection with the purchase, sale and transfer of the 309,000,000 Century Holdings Ordinary shares.

Furthermore the directors of Century/ CFX provided false and misleading information to CFX’s regulators, Zimbabwe investing public ,auditors and concealed from them their falsification of Century/ CFXs books and records, and manipulation of data recorded in CFXs general ledger and subsidiary ledgers. Making and causing CFX to make untrue statements of material facts and omitting to state material facts necessary in order to make the statements made. This was all done in an effort to hide the tracks of ENG Capital's controlling stake shares in Century/CFX Bank.


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

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

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

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

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

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

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

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

The redress I seek will not in anyway affect the Bank employees and staff. The claim arises out of acts carried out about 5 years ago and subsequent other schemes and transactions meant to sanitize an illegal act. Clearly I have waited for 5 years hoping the plotters, CFX Management, Shareholders will seek to do the right thing and at least acknowledge this act and make amends as a way forward and ensure that the Bank can settle any such claims. I hope your judgement will not be clouded by the illusion that this claim will some how disappear or you can avoid being held accountable by the current unstable and unpredictable environment in Zimbabwe.

For the sake of transparency I am copying this letter to the following ;
Minister of Finance Zimbabwe - Hon Tendai Biti

Reserve Bank of Zimbabwe Governor – Dr Gono

Minister of Justice - Hon Patrick Chinamasa

Zimbabwe Stock Exchange CEO – Mr Emmanuel Munyukwi

Yours Faithfully,

Gilbert Muponda
Toronto ,Canada

1-416-841-5542


Email – gilbert@gilbertmuponda.com

Skype ID – gilbert.muponda

Zimbabwe abuse of investors must be documented

At this stage it is important for all patriotic Zimbabweans to take action and document the abuse of the law thats taking place especially in the Business sector.The Meikles Group seizure is the latest in a long running series which need to be stopped at all costs.

The Meikles seizure is not in isolation .This has become a norm and standard when the Government of Zimbabwe which has been hijacked by organized criminals decides to strip an investor of his assets and wealth.They create smokescreen and illusions that a crime has been committed and use it as justification to grab somebody's hard earned assets and wealth.This has to be stopped if Zimbabwe is to prosper and stabilize.

The current attempt to loot and seize Meikles Africa Group is just an extension of the so-called Anti-graft war schemed and structured by Gideon Gono in 2003-4 when he was appointed RBZ Governor.These policies have been a disaster for the Economy.The policies are based on patronage and victimization of those who try to remain independent of the patronage network.This breeds corruption and economic decline.

This has to be stopped because if the Government can easily takeover the biggest Company on the Zimbabwe Stock Exchange it means they can take any company at will.It is important for all patriotic Zimbabweans to condemn,criticize,highlight and document such abuse of the law.If Zimbabweans do not stand up this will continue and the country will remain a basket case instead of a bread basket.These illegal actions affect every Zimbabwean as the image of the country is damaged and the country gets a reputation of being a lawless jungle.


The actions of Zimbabwe Government affect more people beyond the actual owner of the business.This is why ordinary citizens must stand up and be vigilant on all such schemes which are done in the name of fighting corruption.Many people lost jobs, businesses and careers whilst Governor Gono was hiding behind anti-graft campaign . Businesses destroyed or taken over Royal Bank, Intermarket, Barbican, Intermarket, Rapid, Sagit, Africa Resources, Century Bank, Trust Bank. And this all happened within a space of less than 6 months. Jobs were lost. Business people were scandalized, arrested or haunted out of the country.This resulted in economic decline and capital flight.


John Moxon and Andrew Lane Mitchell are just joining a long list of victims of the mafia inspired policies which have been designed to strip entrepreneurs of their assets.The Zimbabwe Government appears to be now functioning in a typical mafia style whereby every business is not safe unless and until you ask for protection from the organized criminals who masquarade as legitimate authority and Government.


The list is rather long but it includes such luminaries as Dr Makoni, James Mushore, Emmanuel Fundira, Otto Chekeche, Godfrey Jowa, Norman Sachikonye, Victor Chando, Durajadi Simba, Jeffrey Muzwimbi, William Nyemba,Nicholas Vingirai, Francis Zimuto , James Makamba, David Butau, Chris Kuruneri,Nyevero Hlupo, Chris Goromonzi,Nyasha Watyoka,Gilbert Muponda. All these investors and entrepreneurs above a true patriots who chose to set up businesses in their own country instead of neighboring countries where they had similar opportunities and incentives. Is this normal to see a whole generation of entrepreneurs scandalized and lose all credibility and all at the same time all based on accusations raised and directed by policies structured and designed by Gono and others related to him?

The seizure of Businesses significantly raises the political risk associated with investing in Zimbabwe.This always results in assets in the country being depressed and capital flight follows.This forces investors to avoid re-investing in the country as they are worried about the possibility of being targetted by ill-thought out and poorly designed policies.These abuses of the law must be clearly be documented and those responsible must be held accountable for ruining the country's reputation and running down the Economy.

This article appears courtsey of GMRI CAPITAL – www.gmricapital.com

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

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

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

Zimbabwe remains high risk investment destination

By Brian Latham and Janice Kew

Sept. 18 (Bloomberg) -- Zimbabwe’s government has ordered that Kingdom Meikles Africa Ltd., which owns the country’s biggest supermarket chain and best-known hotel, be placed under state administration, a lawyer for the company said.

Kingdom Meikles and its associates -- the Tanganda Tea Co., Thomas Meikle Centre Ltd. and Murlis Investments Ltd. -- have been “specified” under Zimbabwe’s anti-corruption laws, Sternford Moyo, a lawyer for Meikles, said in an interview from the capital, Harare, today. The specification, which allows the state to assume administration, is illegal, Moyo said.

“The specification of these entities is null and void,” Moyo said. “The joint ministers of home affairs aren’t legally entitled to specify anyone or any company.”

On Sept. 16 President Robert Mugabe told foreign investors at a mining conference in Harare that the country respected property rights and the rule of law. Mugabe began a program of seizing white-owned commercial farms for redistribution to black subsistence farmers and has repeatedly threatened to nationalize mines. Zimbabwe is seeking foreign investment to help it recover from a decade long-recession that ended this year.

The companies are accused of “externalizing foreign funds,” Zimbabwe’s state-controlled Herald newspaper reported Sept. 15.

SledgeHammer

“This is a disaster for a country that is trying to attract foreign investment,” Gilbert Muponda, an independent investment analyst, said by e-mail today. “After this asset seizure it is now clear that Zimbabwe remains a high risk investment destination and investors could easily lose serious amounts of money.”

Kembo Mohadi and Giles Mutsekwa, the co-ministers of home affairs, didn’t answer calls to their mobile phones today.

“It feels a little like a sledgehammer approach has been used in cracking a nut,” Roelof Horne, who helps manage about $700 million in African funds run by Cape Town-based Investec Asset Management, said in an interview. “To retain investor confidence I imagine it would have been better to force the company to correct its actions.”

In February Mugabe and Morgan Tsvangirai, the former opposition leader, set up a coalition government after intervention by the Southern African Development Community of neighboring states to end a 10-year political crisis.

Mohadi is a member of Mugabe’s Zimbabwe African National Union-Patriotic Front while Mutsekwa belongs to Tsvangirai’s Movement for Democratic Change.

‘Anxiousness for Investors”

Under Zimbabwean law, “specified” companies must be administered by a government appointed official.

“What could be a technical infringement seems to have raised the full force of the law to the harshest extent,” Horne said. “That creates some anxiousness for investors, in that it could happen to any company they own.”

The MDC condemned the specification as a “mafia style grab of assets which erodes all hope” of attracting investment, the party said in an e-mailed statement.

Calls to Kingdom Meikles weren’t immediately answered today. Calls to John Moxon, Meikles’ biggest shareholder, similarly weren’t answered. On Sept. 15 the Meikles asked for trade in its shares on the Zimbabwe Stock Exchange to be suspended without giving a reason.

Kingdom Meikles, which owns the TM supermarket chain in Zimbabwe and the Meikles hotel in Harare, has a market value of $90 million. It also controls Zimbabwe’s biggest locally owned bank and owns department stores and cotton companies. Tanganda is the country’s biggest tea producer.

The company was formed in January last year by combining Kingdom Financial Holdings Ltd. and Meikles Africa Ltd. The company said on June 26 that it would de-merge after disagreements between John Moxon, who had been the biggest shareholder in Meikles Africa, and Kingdom Meikles’ former Chief Executive Officer, Nigel Chanakira. It didn’t give further details.

An extraordinary general meeting is scheduled for Sept. 24.

Johannesburg-based Moneyweb, an Internet news site, reported the action earlier.

To contact the reporters on this story: Brian Latham in Durban at blatham@bloomberg.net. Janice Kew in Johannesburg at jkew1@bloomberg.net.

The seizure of Meikles assets a disaster for Zimbabwe

In a shocking and ill advised move the Government of Zimbabwe froze assets of four companies linked to the Meikles family and commenced investigations into what appears to be fabricated allegations of externalizing foreign currency leveled against the entities and Mr John Moxon.This is a disaster for a country that is trying to attract foreign investment. Recently the Prime Minister was in London where he was calling on all Zimbabwean exiles to return and invest. After this asset seizure it is now clear that Zimbabwe remains a high risk investment destination and investors could easily lose serious amounts of money.

This action must be condemned in the strongest terms as it pushes the country back wards. Zimbabwe is supposed to be progressively attracting fresh investors whilst protecting those already in such as Meikles ,Moxon and others whose assets have been controversially taken on the flimsiest of excuses.

Meikles Hotel is a world renowned hotel which attracts visitors and tourists from all over the world. It was expected to reap huge benefits from the World Cup 2010 in South Africa. However this illegal seizure and specification just a few months ahead of the World Cup means the Hotel and the country will lose revenue as many visitors may shun the facility. This is bad for Zimbabwe and bad for employees and will result in further suffering for

Home Affairs Co-Ministers Kembo Mohadi and Giles Mutsekwa appointed Messrs Budhama Chikamhi and Cleopas Mukungunugwa as investigators of Mitchell and the specified companies.It is totally unbelievable that an MDC Minister would find it acceptable and normal to legitimize such a blatant asset grab process when Zimbabweans are expecting MDC to curb ZANU PF’s high propensity to abuse the law and ignore property rights which has turned Zimbabwe into a lawless jungle especially on asset grab and seizures by the a few individuals who have high jacked state institutions. This is wrong and must be stopped if the country is to develop and prosper. Zimbabwe desperately needs companies like Meikles to be flourishing under their rightful owners and this will attract foreign investors.

According to an Extraordinary Government Gazette published last Friday, listed Kingdom Meikles, Tanganda Tea Company (Private) Limited, Thomas Meikles Centre (Private) Limited and Murlis Investments (Private) Limited were listed as specified companies. This means now the Companies and concerned individuals can not spend more than $ 100 without permission from the “Investigator”. Effectively this passes control of the business to the Government as it now has power to appoint the Administrator who will work according to instructions from Government and not from the right full owners of the Business. This effectively kills the business.

GMRI Capital has already conformed that the various Meikles units affected by this speciation action are now struggling to maintain the Banking facilities and cant access credit. Investors are jittery as they are not sure what action to follow due to this move which is totally against what the Government has been saying about safety of investing in Zimbabwe.

Kingdom Meikles managing director Andrew Lane-Mitchell was also specified in his personal capacity in terms of Section 6 of the Prevention of Corruption Act .The appointments were made in terms of Section 7 of the Act. Whilst it appears the law is being followed by the various quotes of Acts being used this is a clear case of a state that has been hijacked by organized criminals who masquerade as Government. This is an action which will not benefit the country but it will benefit a few individuals who may find themselves under targeted sanctions and will find it hard to do business outside Zimbabwe and Africa.

This is just the latest in a long on going series of asset seizures that began with the seizure of Century/CFX Bank from ENG Capital,sezuire of SMM Mines from Mutumwa Mawere,seizure of Trust Bank,Barbcan Bank,Royal Bank,Kondozi Farm.The methos is the same the rightful owners of the business are specified,scandalized,criminalzied whilst their assets are taken over in the name of fighting corruption.This is what has ruined Zimbabwe's entreprenurial spirit and ruined the Economy.

This action of seizing a long established and legitimate business sends the wrong signal to the international community. These are the actions which result in economic decline loss of jobs and loss of production as investors are scared to make fresh investments which create jobs. These are the actions that hurt the Economy even though some try to blame sanctions when its clear the Government itself is putting illegal sanctions against its own people and own investors. Charity begins at home.

This article appears courtsey of GMRI CAPITAL - www.gmricapital.com

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

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

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

Letter to CFX Bank Management and Staff

This is meant as a CFX Bank stake holder update and primarily for CFX Bank staff and management who may not have been accurately briefed about the nature and basis of my claim and the various letters on this subject.

As the majority shareholder I intend to exercise my fiduciary duty on behalf of my self as shareholder, founder and contributory of ENG capital to fully document and seek redress for the fraudulent transfer of shares which were used to merge Century Bank and CFX Bank.CFX Bank was created as a result of a merger between CFX Bank and Century Bank. Century Bank was fraudulently merged with CFX Bank through the illegal and irregular transfer of 309,000,000 Century Holdings shares owned by ENG Capital and Companies owned or controlled by ENG Capital. Since this was a fraudulent and illegal transfer of ENG shares the plotters of the scheme renamed the resultant bank CFX Bank dropping the name "Century" in an effort to hide their tracks and attempt to remove any link with Century.

ENG and its directors have established a prima facie case against CFX Limited since it is mainly made up of Century Assets and intend to seek redress and compensation for shares illegally incorporated into CFX Bank.

I intend to seek relief through the courts should this matter not be resolved amicably. At this time it is important to note we have observed several instances whereby the court's orders are ignored and dis-regarded and as such we will be seeking redress in jurisdictions beyond Zimbabwe. In addition we will be seeking redress jointly and severally from certain individuals and entities that are directly benefiting and seeking to aid and abet asset grab and asset looting that is now common in corporate Zimbabwe. Those involved must take note.


This is an on going effort to hold responsible those who looted assets and are now trying launder their loot. All efforts are being made to pursue available legal channels in multi-jurisdictions to ensure that the individuals and entities responsible are held accountable for their actions.


The shares in question have changed the ownership at the start of my claim “with a view to evading the consequences of the litigation”.

Various transactions and Company re-organization schemes with the ultimate aim of sanitizing asset looting and illegal expropriation of our Assets. The current proposed recapitalization exercise must be viewed in the same light as it now seeks to sell our illegally transferred shares into hands of another foreign Bank which will further hide the tracks of the illegal transaction. This must be documented and stopped.

some of current and preceding Directors and senior management of CFX Bank with a view to concealing the true owners of shares in Century Bank later converted to CFX Bank and entered into a secret arrangement with the Governor of the RBZ, whereby the latter acquired the shares, obtained a specification order for all ENG directors thereon, brought the Century Bank shares to sale under execution and purchased the shares for a new company CFX Bank, organized later in which the RBZ Governor has a large interest through nominees.

The allotment of shares to the GOZ in the new CFX Bank is proportionate to those held by ENG in Century Bank and the CFX directors agreed with the RBZ Governor not reveal this understanding to the other shareholders and general public.

The Senior Management and Directors of CFX are co-conspirators in an elaborate scheme to defraud ENG and its shareholders and contributories. They have falsely and fraudulently with others known and unknown, unlawfully, willfully, and knowingly did combine, conspire, confederate, and agree together and with each other to commit offenses against ENG to commit fraud in connection with the purchase, sale and transfer of the 309,000,000 Century Holdings Ordinary shares.

Furthermore the directors of Century/ CFX provided false and misleading information to CFX’s regulators, Zimbabwe investing public ,auditors and concealed from them their falsification of Century/ CFXs books and records, and manipulation of data recorded in CFXs general ledger and subsidiary ledgers. Making and causing CFX to make untrue statements of material facts and omitting to state material facts necessary in order to make the statements made. This was all done in an effort to hide the tracks of ENG Capital's controlling stake shares in Century/CFX Bank.


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

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

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

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

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

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

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

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

The redress I seek will not in anyway affect the Bank employees and staff. The claim arises out of acts carried out about 5 years ago and subsequent other schemes and transactions meant to sanitize an illegal act. Clearly I have waited for 5 years hoping the plotters, CFX Management, Shareholders will seek to do the right thing and at least acknowledge this act and make amends as a way forward and ensure that the Bank can settle any such claims. Obviously this maybe a situation whereby they feel this claim will suddenly go away and disappear.

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

Reserve Bank of Zimbabwe Governor – Dr Gono

Minister of Justice - Hon Patrick Chinamasa

Zimbabwe Stock Exchange CEO – Mr Emmanuel Munyukwi

CFX BANK Board of Directors


Zimbabwe Parliament -Budget, Finance and Investment Promotion Members Below

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

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

Yours Faithfully,

Gilbert Muponda
Toronto ,Canada

1-416-841-5542

1-647-994-5542

Email – gilbert@gilbertmuponda.com

Skype ID – gilbert.muponda

LETTER TO CREDIT SUISSE/ FINANCE BANK ZAMBIA INVESTMENT IN CFX BANK ZIMBABWE

The Managing Director
Credit Suisse - Holder of 40% in Finance Bank Zambia

One Cabot Square

London E14, 4QJ

UK

Dear Sir,


RE ; CREDIT SUISSE/ FINANCE BANK ZAMBIA INVESTMENT IN CFX BANK ZIMBABWE OWNERSHIP WRANGLE AND DISPUTE

I am notifying you as a major shareholder in Finance Bank of Zambia which is seeking to make an investment in CFX BANK ZIMBABWE. According to recent press reports Credit Suisse will finance this transaction. CFX BANK/Century Bank was unlawfully and illegally seized from my Company by the Government of Zimbabwe using various means and schemes. The proposed investment by Credit Suisse through Finance Bank of Zambia represents a blatantly transaction and money laundering act meant to hide the tracks of the preceding illegal seizure of my asset (CFX BANK) by the Zimbabwe Government using various illegal and cruel means. For this reason it is not a wise investment by Credit Suisse and Finance Bank Zambia as legal action is pending and in process to reclaim the stolen assets which are now being sanitized through various disposals and “investments”.

Credit Suisse and Finance Bank Zambia are trying to buy an Asset (CFX Bank) which was looted and expropriated from me and my Company. This is not right and must not be allowed to happen. Credit Suisse is exposing itself to serious reputation risk as this ownership wrangle is definitely going to drag its name and brand into asset looting and expropriation that is currently going on in Zimbabwe.

Through notice of this letter should Credit Suisse through its associate and subsidiary Finance Bank Zambia choose to continue to Finance an illegal and money laundering transaction it will become party to the pending litigation and be exposed to the attendant reputation risk.

You are receiving this letter as notification of the course of action spearheaded on behalf of my company ENG CAPITAL (PVT) LTD (ENG) and its directors in our effort to recover at least 309 000 000 (million) and up to 900,000,000 (Nine hundred Million), Century Bank shares fraudulently converted into CFX Bank shares. The fraud was masked as a merger between Century Bank and CFX Bank but after the merger Century name was dropped to cover the tracks of the fraud. The dispute was triggered by the special bargain sale of 309,000,000 shares but the total shares owned by ENG were 900,000,000 the balance was transferred in peace meal fashion to avoid detection of the fraud and transaction laundering that was being perpetrated.

This is an on going effort to hold responsible those who looted assets and are now trying launder their loot. All efforts are being made to pursue available legal channels in multi-jurisdictions to ensure that the individuals and entities responsible are held accountable for their actions. Please be guided accordingly.

At all times relevant to this document ENG was a corporation organized under the laws of the Republic of Zimbabwe with its head office in Harare and be advised that I was unlawfully separated from my business by the RBZ with the connivance of the CFX directors.

The shares in question have changed the ownership at the start of my claim "with a view to evading the consequences of the litigation".

Various transactions and Company re-organization schemes with the ultimate aim of sanitizing asset looting and illegal expropriation of our Assets.

It is important that your Organization avoids being a conduit to a money and asset laundering scheme.

The current and preceding Directors of CFX with a view to concealing the true owners of shares in Century Bank later converted to CFX Bank and entered into a secret arrangement with the Governor of the RBZ, whereby the latter acquired the shares, obtained a specification order for all ENG directors thereon, brought the Century Bank shares to sale under execution and purchased the shares for a new company CFX Bank, organized later in which the RBZ Governor has a large interest through nominees.

The allotment of shares to the GOZ in the new CFX Bank is proportionate to those held by ENG in Century Bank and the CFX directors agreed with the RBZ Governor not reveal this understanding to the other shareholders.

As the majority shareholder I intend to exercise my fiduciary duty on behalf of ENG by calling upon all shareholders of CFX for an Extra-Ordinary General Meeting (EGM) within 90 days to discuss this matter.

ENG and its directors have established a prima facie case against CFX Limited and intend to appoint a forensic auditor, whose mandate shall be to determine the true nature of CFX’s shares.

With this letter I serve you notice of ENG’s intentions to seek relief through the courts should this matter not be resolved amicably.

Century bank was a public company listed on the ZSE.

The directors of CFX are co-conspirators in an elaborate scheme to defraud ENG. They have falsely and fraudulently with others known and unknown, unlawfully, willfully, and knowingly did combine, conspire, confederate, and agree together and with each other to commit offenses against ENG to commit fraud in connection with the purchase and sale of securities issued.

Furthermore the directors of CFX provided false and misleading information to CFX's auditors and concealed from them their falsification of CFX’s books and records, and manipulation of data recorded in CFX’s general ledger and subsidiary ledgers. making and causing CFX to make untrue statements of material facts and omitting to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading

For the foregoing reasons, your Proposed investment in CFX /Century Bank Zimbabwe, the bank ownership transfer is subject to an on going dispute .This transaction may expose your Bank to high reputational risk as the dispute may entangle your Organization as the Rightful owners of CFX /Century Bank seek to reclaim their stolen shares and Bank.

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

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

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

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

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

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

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


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

Attached is a copy of a recent letter to the Zimbabwean Minister of Finance seeking his assistance to resolve the matter. Should this matter not be resolved amicably I am seeking to pursue all legal options till justice is served .


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


Finance Bank Zambia - Managing Director

Minister of Finance Zimbabwe

Reserve Bank of Zimbabwe Governor - Dr Gono

Minister of Justice Zimabwe - Hon Patrick Chinamasa

Zimbabwe Stock Exchange CEO - Mr Emmanuel Munyukwi

CFX BANK Board of Directors

POSB

MSASA NOMINEES


Zimbabwe Parliament -Budget, Finance and Investment Promotion Members Below

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


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


Yours Faithfully,


Gilbert Muponda
Toronto ,Canada

1-416-841-5542

1-647-994-5542

Email - gilbert@gilbertmuponda.com

Skype ID - gilbert.muponda

LETTER TO FINANCE BANK OF ZAMBIA ON ENG CLAIM ON CFX BANK

The Managing Director
Finance Bank Zambia
Plot 226 Finsbury House, Buteko Avenue, Ndola Zambia

RE ; FBZ INVESTMENT IN CFX BANK ZIMBABWE OWNERSHIP WRANGLE AND DISPUTE

You are receiving this letter as notification of the course of action spearheaded on behalf of my company ENG CAPITAL (PVT) LTD (ENG) and its directors in our effort to recover at least 309 000 000 (million) and up to 900,000,000 (Nine hundred Million), Century Bank shares fraudulently converted into CFX Bank shares. The fraud was masked as a merger between Century Bank and CFX Bank but after the merger Century name was dropped to cover the tracks of the fraud. The dispute was triggered by the special bargain sale of 309,000,000 shares but the total shares owned by ENG were 900,000,000 the balance was transferred in peace meal fashion to avoid detection of the fraud and transaction laundering that was being perpetrated.

This is an on going effort to hold responsible those who looted assets and are now trying launder their loot. All efforts are being made to pursue available legal channels in multi-jurisdictions to ensure that the individuals and entities responsible are held accountable for their actions. Please be guided accordingly.

At all times relevant to this document ENG was a corporation organized under the laws of the Republic of Zimbabwe with its head office in Harare and be advised that I was unlawfully separated from my business by the RBZ with the connivance of the CFX directors.

The shares in question have changed the ownership at the start of my claim "with a view to evading the consequences of the litigation".

Various transactions and Company re-organization schemes with the ultimate aim of sanitizing asset looting and illegal expropriation of our Assets.

It is important that your Organization avoids being a conduit to a money and asset laundering scheme.

The current and preceding Directors of CFX with a view to concealing the true owners of shares in Century Bank later converted to CFX Bank and entered into a secret arrangement with the Governor of the RBZ, whereby the latter acquired the shares, obtained a specification order for all ENG directors thereon, brought the Century Bank shares to sale under execution and purchased the shares for a new company CFX Bank, organized later in which the RBZ Governor has a large interest through nominees.

The allotment of shares to the GOZ in the new CFX Bank is proportionate to those held by ENG in Century Bank and the CFX directors agreed with the RBZ Governor not reveal this understanding to the other shareholders.

As the majority shareholder I intend to exercise my fiduciary duty on behalf of ENG by calling upon all shareholders of CFX for an Extra-Ordinary General Meeting (EGM) within 90 days to discuss this matter.

ENG and its directors have established a prima facie case against CFX Limited and intend to appoint a forensic auditor, whose mandate shall be to determine the true nature of CFX’s shares.

With this letter I serve you notice of ENG’s intentions to seek relief through the courts should this matter not be resolved amicably.

Century bank was a public company listed on the ZSE.

The directors of CFX are co-conspirators in an elaborate scheme to defraud ENG. They have falsely and fraudulently with others known and unknown, unlawfully, willfully, and knowingly did combine, conspire, confederate, and agree together and with each other to commit offenses against ENG to commit fraud in connection with the purchase and sale of securities issued.

Furthermore the directors of CFX provided false and misleading information to CFX's auditors and concealed from them their falsification of CFX’s books and records, and manipulation of data recorded in CFX’s general ledger and subsidiary ledgers. making and causing CFX to make untrue statements of material facts and omitting to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading

For the foregoing reasons, your Proposed investment in CFX /Century Bank Zimbabwe, the bank ownership transfer is subject to an on going dispute .This transaction may expose your Bank to high reputational risk as the dispute may entangle your Organization as the Rightful owners of CFX /Century Bank seek to reclaim their stolen shares and Bank.

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

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

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

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

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

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

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


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

Attached is a copy of a recent letter to the Zimbabwean Minister of Finance seeking his assistance to resolve the matter. Should this matter not be resolved amicably I am seeking to pursue all legal options till justice is served .


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


Minister of Finance Zimbabwe

Reserve Bank of Zimbabwe Governor - Dr Gono

Minister of Justice - Hon Patrick Chinamasa

Zimbabwe Stock Exchange CEO - Mr Emmanuel Munyukwi

CFX BANK Board of Directors

POSB

MSASA NOMINEES


Zimbabwe Parliament -Budget, Finance and Investment Promotion Members Below

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


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


Yours Faithfully,


Gilbert Muponda

1-416-841-5542

1-647-994-5542

Email - gilbert@gilbertmuponda.com

Skype ID - gilbert.muponda

LETTER TO MINISTER OF FINANCE ON RETURN OF CFX BANK TO ENG CAPITAL

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

15 August 2009

Dear Hon Minister Tendai Biti

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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


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

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


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

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

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

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



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

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

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

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

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

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

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

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

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

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

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

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

Yours Faithfully,

Gilbert Muponda

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

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