Last week Investment Banker Gilbert Muponda sat down for an interview with Shame Makoshori, The Financial Gazette Chief Business Reporter to discuss the recent High Court ruling returning ENG Assets.
Shame Makoshori – SM
Gilbert Muponda – GM
SM – What does the judgment mean to you and what is the way forward?
GM – The High Court quote from HC6086/09 “ENG companies and directors satisfactorily liquidated all debts past present and future accumulated by the company”. That is the important bit. Then the bit about excess cars and excess companies like Allied Conveyors being returned to us.
The Master of High Court and liquidator confirm. This serves to confirm that ENG was only targeted by greedy individuals who wanted to grab its assets such as Century Bank which was renamed CFX Bank. This bank must be returned to ENG as other banks such as Trust, Barbican, Royal Bank have been returned to their original owners. There is no reason whatsoever why Century/CFX Bank shouldn’t be returned to me and ENG.
SM – Does this judgment pave the way for the return of ENG in Zimbabwe?
GM – It shows that ENG was solvent and financially solid. Yes ENG is being revived. We are working flat out for the re-launch around December 31. But it won’t be in Zimbabwe as I remain specified. I cannot be a director in Zimbabwe it will just be active outside Zimbabwe until de-specification. But we are ready from day one (of de-specification) to re-launch ENG Bank. ENG Bank will not take deposits from the public. It will be focused on investment banking and activities such as research, mergers and acquisitions and private equity. Our feeling is that Zimbabwe has enough traditional banks but it does not have a proper investment bank in the mould of Goldman Sachs and Black Stone.
There are no meaningful deposits in the Zimbabwe market so most banks will struggle to get by because of mis-aligned cost structures and over staffing.
Our model will focus on helping small companies get listed or raise capital instead of focusing on mobilizing deposits that are not there. Zimbabwe’s banking sector as it is right now can only be saved by the re-introduction of the Zimbabwe dollar maybe pegged to the RAND or US$ .Otherwise with people earning $200 per month and spending all of it there is no savings therefore nothing for the banks to manage.
SM – Have you engaged authorities in Zimbabwe to begin the process of your de-specification, or you are awaiting the State to take the initiative?
GM – My lawyers have engaged the authorities about de-specification and we are happy with the progress. We have positive feedback that things may be normalized soon to allow my safe return and re-launch ENG Bank.
SM- You have been vocal since the time you fled the country, complaining about the way your assets were handled. It should be a long and bumpy road to despecification, I suspect?
GM – Yes, I have been vocal, but that is the way one must be when unfairly treated by individuals abusing state authority. The High Court has spoken and confirmed my innocence. I think we must respect that and move on in the spirit of national healing and rebuild the country together. This is the time to work together and all gear towards re-branding Zimbabwe as a financial powerhouse of the Southern African Development Community region. I am not a politician and I am not interested in politics but at times politicians screw up so much that keeping silent would be a crime. I had to articulate my side of the story and how I felt we were being treated.
This was very important because there was a false impression that ENG was a shelf company that owned nothing but cars. But as you have seen I have managed to highlight that ENG in fact owned many assets including Century. CFX Bank which I want returned to me and ENG.
SM – So this judgment means that when they said you abused depositors’ funds on joyrides to watch soccer matches in London they were lies? You were expending your own money?
GM – Those were totally false and fabricated allegations , the smokescreen that was used to create a contrived depiction of a mass scandal which was used to justify the blatant looting and asset stripping of ENG, including the callous misappropriation of our bank, Century/CFX by politically connected individuals.
I have never watched a match in the United Kingdom ,My favourite soccer team is Dembare so there is no way I could go to England to watch a football team I have no liking for instead of my one beloved one based in Mbare. That ridiculous story was totally false and peddled through the rumour mills by the very same persons who were busy raiding ENG assets.
Let me set the record straight – ENG never availed depositor funds to its directors for personal use nor did I as a officer of ENG exploit depositor funds for personal use. ENG did not take deposits from the public, ENG was a fund of funds which meant only other highly specialised Institutions dealt with ENG.
When we started ENG I was already financially secure. Prior to me starting ENG my record of Employment at NMB Bank is testimony to my financial expertise. I rose to be the youngest Head of Corporate Finance in the Zimbabwe market. At TN Financial Services I was the youngest director of any Financial Institution and at both institutions I owned equity.
ENG founders were a very focused and determined team and it is that spirit and hard work, that built ENG into a formidable entity in a short period of time.
The foreign travels mentioned were actually business trips undertaken by the directors of ENG – a company managing assets in excess of 160 million dollars exploring new markets in preparation for the anticipated launch of ENG Global.
Instead innuendos, hearsay and unfounded accusations dripping with venom from all quarters fuelled the vilification of our otherwise solid financial institution. Alas ENG is a strong brand again and our focus for now is to rebrand and rebuild.
SM – And if you were innocent why did you run away. Why didn’t you say I am innocent, I will defend myself?
GM – Natural self preservation dictated my actions – I had to run away from a vicious system and greedy individuals who would have stopped at nothing in their quest to strip me of all my wealth and create my persona as a scapegoat and reason for the collapse of the financial system. Before and after ENG how many other financial institutions which ENG never dealt with collapsed? How many other innocent business persons have been incarcerated since?
My attorney, the late Mr Oscar Ziweni was harassed, intimidated and arrested for defending me and specified for taken my brief and in the end I had no legal representation. At that time the tumultuous atmosphere that had gripped the nation and the culpable political interferences in the ENG saga, presented a clear and present danger to me and my family which left me with no choice but to abscond and seek refuge elsewhere,, where I could then clear my good name in peace.
SM- You should have been targeted after creating enemies in the corridors of power? am I right?
GM- We were targeted because we did not have a political Godfather to protect us. You should know by now Zimbabwe is a class society there are people who feel they only deserve certain things and certain level of success. If you succeed without their help or involvement or they don’t know who you are that is cause of concern to them and the full state apparatus can be unleashed on you. I was an SME(i.e self made entrepreneur).
SM- The ENG brand has been soiled, and already the market in Zimbabwe is sceptical about the financial system. What gives you the confidence you will make it. Will you redress your brand, I mean renaming.
GM – The ENG brand remains strong .Since ENG was closed 6 years I havent seen any exciting and meaningful financial services brands coming out of Zimbabwe that as nearly strong. Yes it may have been affected by this immediate past but all strong brands are built by going through such events and forging ahead. ENG has settled all claims against it and there have been excess assets which we will use as the core of our new vision with the same name. Once Century/CFX Bank is returned to me and ENG we will restructure and rename it ENG Bank and model it similar to Black Stone and Goldman.
Most banks are struggling in Zimbabwe because of their cost to income ratios which are totally out of line. In addition the Banks have failed to access foreign credit lines to inject liquidity in the market. ENG Bank will be in a unique position to access foreign credit lines because of the networks I have been developing over the last 6 years since I left Zimbabwe.
SM – It must have been pretty scaring being fingered in what authorities called big scandals at that tender age. Tell us how you felt then?
GM – I was obviously very disappointed because I felt we were building a solid business and a brand that would make Zimbabwe. I was still a very young man but highly experienced due to my previous working experience and having been mentored by Zimbabwe’s brightest financial brains and alongside highly talented colleagues possessing experience. So I feel that in some way I had been trained to handle the crisis as it unfolded.
SM – You should be at liberty to share with us how you outwitted police. Tell us the experience. A banker turned fugitive?
GM – I do not think I outwitted the Police.The individuals at ENG Executive Security just did their work.On my part I had been praying and fasting for 5 weeks before I left Zimbabwe so I felt there was divine intervention.,you know the biblical moments when the Seas open to let you pass and then close once you are gone.I was never a fugitive.Fugitive refers to someone who is fleeing justice, I do not think at that time what was happeing to me was justice, I was fleeing persecution and there is a term for that.The High Court of Zimbabwe has proven my innocence so Century /CFX Bank must be returned to ENG just like Time Bank,Trust,Barbican and Royal Bank are being returned to their former owners why should it be any different on Century/CFX Bank?
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