Kingstons’ property attached over US$17,9m debt

Part of the property was attached yesterday afternoon.
Human resources manager Mr Caleb Sithole had approached the High Court in November last year and was granted a default judgment (case number HC 7216/10).

The allowances arose after he said he was appointed acting eastern regional sales (operations) manager from July 2001 to June 30, 2006.
On February 2, 2011 Kingstons was served with a notice of seizure and attachment by Assistant Deputy Sheriff Mr Maxwell Chakawarika for execution in the sum of US$19 992 212.
However, Kingstons’ lawyers — Mutamangira and Associates — say the order granted by Justice Ben Hlatshwayo on November 25, 2010 was erroneously sought and granted in their absence.

Mr Sithole said Kingstons had not complied with the arbitrator’s ruling and agreement reached.
He also submitted he had obtained foreign currency exchange rates from the RBZ when Zimbabwe switched to multiple currency use and had used these in quantifying the dues.
According to Mr Sithole, 30 percent of his salary added up to US$14 363 511,82 including interest from November 30, 2006 to January 2009, while his housing allowance added up to US$3 550 096,57.
This, he said, totalled US$17 913 608,39.

Kingstons group chief executive Mr Brian Sedze, in his founding affidavit, contends that the amount claimed is grossly unreasonable.
“. . . in fact even the applicant’s capital value does not come anywhere near this figure,” Mr Sedze submitted.
He averred that in the history of labour-related damages in Zimbabwe — if not the world — there had never been an employee who obtained such an award.
“But what is shocking is that this order was obtained on the basis of clear misrepresentation and without the applicant being awarded the claim,” he said.

Mr Sedze contends Mr Sithole had also “unilaterally and nicodemously” filed the chamber application with the court and presented excessive figures of what he considered to be his salary.
Mr Sedze adds that Kingstons was not served with a copy of the order and only became aware of the case’s existence on February 2, 2011.
This was when Assistant Deputy Sheriff Mr Chakawarika came to serve them the court order at 4:45pm.
“It is applicant’s contention that the default judgment was fraudulently obtained by misrepresenta-tions in circumstances where the respondent (Mr Sithole) had no lawful basis to be approaching the court for relief,” Mr Sedze says.

It was submitted that Mr Sithole approached the court by a way of chamber application for registration of an arbitral award in terms of the Labour Relations Act.
According to the award, Kingstons was supposed to pay Mr Sithole a salary, and housing and education allowances but the parties were required to agree on the quantum.
Mr Sedze contends that should they fail to agree, the parties are required to approach an arbitrator for quantification.

However, the parties failed to agree on the quantification.
“It is common cause that the Labour Court postponed the case in sine die (indefinitely) to allow the parties to negotiate an out of court settlement.”
He says the Labour Court case is still pending.
The matter is yet to be set for hearing.
However, last night unconfirmed reports were that property was already being attached.

You Might Also Like

Comments