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Herald Reporter
Zimbabwe Amalgamated Housing Association (ZAHA) has accused Allied Bank liquidating agent Dr Cecil Madondo of masquerading as the liquidator of the bust financial institution, thereby deceiving creditors.

This came out in an application for joinder filed at the High Court by the housing association.

ZAHA recently filed an application at the High Court citing Dr Madondo as the liquidator in a case in which the housing association wants to recover its $1,4 million locked in Allied Bank.

In response to the application, Dr Madondo said he was only a liquidating agent, and referred ZAHA to the Deposit Protection Corporation which he said was the actual liquidator.

In the application for joinder, ZAHA wants the Deposit Protection Corporation to be joined as the first respondent, Dr Madondo as the second, Allied Bank as the third and the Master of the High Court as the fourth.

ZAHA director general Dr Killer Zivhu said in his affidavit accompanying the application for joinder that Dr Madondo had not been truthful in his dealings with creditors.

“I could have simply cited the 1st Respondent as the liquidator in my initial application, but this information was not known to me,” he said.

“In fact, I verily believe that there was a deliberate ploy by the 1st and 2nd Respondents, for the 2nd Respondent to masquerade as the liquidator. I do not think I am the only one who operated under this belief, but all the other creditors were deceived in that regard.

“I say so because at all material times, the 2nd Respondent has acted as the liquidator. In all correspondences, he passed off as the liquidator. Even at the first creditors meeting he never disclosed that he was simply the liquidating agent. How he was appointed and assumed the statutory duties of protecting citizen monies remains veiled in obscurity.”

Dr Zivhu said it was disheartening that the Deposit Protection Corporation would delegate its statutory obligations to Dr Madondo without the input of those intending to recover their funds.

“This is precisely why there has not been any meaningful progress for the last two years in the recovery of the creditors’ money, while the liquidator and its agent continue to draw commissions and monies to the prejudice of the applicant and other creditors,” he said.

In the initial case, ZAHA cites Dr Madondo as the liquidator and wants him removed or that he discloses a final distribution plan.

But Dr Madondo filed his counter application indicating that he was only a liquidating agent and that the Deposit Protection Corporation was the actual liquidator.

“It is just and fair in the circumstances that the first Respondent (Deposit Protection Corporation) be joined to the main application to show cause why he should not be removed from the office of the liquidator or be compelled to disclose how he intends to pay creditors their money,” reads Dr Zivhu’s affidavit.

Dr Madondo’s response to ZAHA’s initial application revealed the extent of the abuse of depositors’ funds at Allied Bank amounting to more than $30 million.

He also provided the court with a list of creditors showing that Government ministries and departments, parastatals, big corporates, churches, councils and various individuals lost their money to Allied Bank directors.