Lawyers representing Zimbabwe Amalgamated Housing Association (Zaha) have written to the Master of the High Court asking him to cause the liquidator of Allied Bank to hold the overdue second meeting of creditors within 14 days.
The lawyers, Mugiya and Macharaga Law Chambers, said Zaha, which has more than $1,4 million locked up in the bank, would seek the removal of Dr Cecil Madondo as the liquidator if he failed to call for the meeting. “It is our serious contention that the liquidator has failed to comply with Sections 277, as well as Section 279 of the Companies Act in failing to convene the second meeting of creditors, as well as his failure to lodge reports with your good office within the prescribed period of six months,” the lawyers said.
“We have instructions from our clients that your good office causes the liquidator to comply with provisions of the Companies Act within 14 days in terms of Section 280 of the same Act, failure of which, we are to seek removal of the liquidator in terms of Section 280 compelling the liquidator to lodge his account detailing the state of affairs, as well as his distribution plan.”
The lawyers said Zaha was not aware of the affairs of Allied Bank. They said Zaha lodged its claim of $1 410 549,38 which was provisionally accepted as a valid credit on the first meeting of creditors held at the High Court in June 2015. “To our client’s dissatisfaction, the liquidator has up to now failed to convene a second meeting of creditors, a period of two years now from the date of the first meeting,” said the lawyers.
“We write to you to register our client’s displeasure as provided for under Section 223 of the Companies Act which mandates your good office to investigate complaints brought by creditors or interested parties against a liquidator.”
Speaking in an interview, Zaha director-general Dr Killer Zivhu said they would eventually take the owners of the bank to court if they did not release the money. “We will seek to understand in court how this bank was registered without measures to protect depositors’ money,” he said. “We deposited our cash in the bank and we want to know the loopholes. “If there were assets pledged, where are they? Are they registered in the name of the bank?”
Dr Zivhu said after obtaining a High Court order to attach the Allied Bank property recently, they found out that it had no valuable assets, except computers.
He said the money locked up in the bank belonged to members of his housing association and meant for development of residential stands.
After his appointment, Dr Madondo revealed that the major shareholder of the collapsed Allied Bank, Trebo & Khays, overvalued and failed to transfer assets pledged as part of the purchase transac- tion.
Trebo & Khays is Macro-economic Planning and Investment Promotion Minister Obert Mpofu’s family investment vehicle which owned 95 percent of Allied Bank at the time of its closure.
Allied Bank was formed from the ashes of ZABG, then an amalgamation of three troubled banks — Trust, Royal and Barbican.
When the three banks took out their assets after RBZ reversed the forced merger, the former ZABG was left on the brink, despite rebranding to Allied Bank.