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POLITICIAN Retired Major Kudzai Mbudzi, whose property developing firm was placed under reconstruction four years ago, wants the Government order lifted saying he is capable of servicing the debts.
Rtd Maj Mbudzi said Treasure Consultants Private Limited was not insolvent and the reconstruction order was worsening the situation that prevailed at the time it was issued. He is, however, not challenging the constitutionality of the Reconstruction of State-Indebted Insolvent Companies Act. The politician owns 95 percent shareholding in Treasure Consultants.
Treasure Consultants entered an agreement with Masvingo Municipality to buy 500 undeveloped residential stands in 2005 with the intention to build houses for resale to residents on the council’s waiting list.
The Infrstructure Development Bank of Zimbabwe was roped in to fund construction with repayment being made after the houses were sold. In 2007 the project stalled due to financial problems and Government placed it under reconstruction with Mr Arafas Gwaradzimba being the administrator. Rtd Maj Mbudzi has since filed an urgent chamber application at the High Court for the order to be lifted. However, Justice Samuel Kudya ruled that the matter was not urgent, meaning the case can be pursued through a normal court application.
Rtd Maj Mbudzi argues that IDBZ failed to make adequate cash disbursements in a hyperinflationary environment.
“TCL, for reasons out of its control, but attributable to default on the part of IDBZ, could not implement the project within the agreed time frame. I believe the reconstruction order was flawed from the very beginning.
The minister issued the order on the basis of representations from one side without affording Treasure Consultants an opportunity to be heard.
“As regards Treasure Consultants’ indebtedness to the State through IDBZ, I am, in my capacity as a shareholder, in a position to raise funds to bail the company out.” — CR.