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Herald Reporter—
The Zimbabwe Amalgamated Housing Association (ZAHA) has filed an application at the High Court seeking the dismissal of Allied Bank of Zimbabwe liquidator Mr Cecil Madondo, in a bid to recover its $1,4 million locked in the bank. In his founding affidavit filed at the court last week, ZAHA chairperson Dr Killer Zivhu said Mr Madondo had failed to comply with his statutory duties as the liquidator of the bank.

ZAHA is represented by Mugiya and Macharaga Law Chambers in the case in which Mr Madondo is cited as the first respondent, Allied Bank of Zimbabwe Limited (in liquidation) the second respondent and the Master of the High Court the third respondent.

“It is my humble submission that a person appointed as a liquidator owes some fiduciary duties to the creditors, amongst others which is to keep creditors well informed of the steps which he is taking to recover what is owed to them and the duty to comply with the provisions of the law regarding the lodging of accounts,” said Dr Zivhu in his founding affidavit.

“It is my contention that the first respondent (Mr Madondo) is failing in such duties. It is now a period in excess of two years since he was appointed liquidator, yet other than convening meetings, he has not done anything to recover and pay out monies owed to various creditors.

“The reports which ought to be lodged in terms of Section 277 of the Companies Act have not been filed with the third respondent (the Master of the High Court).”

Dr Zivhu said Mr Madondo “grossly failed to protect the interests of creditors and should as such be relieved of such duties”.

He said if the court found Mr Madondo was still fit to continue being the liquidator, it should issue an order compelling him to, in terms of Section 280 of the Companies Act, “lodge his full and final distribution account with the Master of the High Court within seven working days from the date that this order is granted”.

Dr Zivhu also wants Mr Madondo to be ordered to surrender Allied Bank’s assets to the Master of the High Court, “including immovable, movable, documents, title deeds, records, bank accounts, liquidation accounts, legal documents and other assets in his possession within seven days of the order.

If he fails, the housing association wants the Sheriff to be authorised to carry out “a diligent search and recover all such assets from Mr Madondo.

ZAHA also wants Mr Madondo to hand over to the Master of the High Court financial reports on all activities he has undertaken in respect of Allied Bank from the time he was appointed the liquidator within seven days of the order.

The association said its claim of $1 410 549,38 was accepted at the first creditors meeting on June 24, 2015 and a letter of confirmation was received to that effect.

After several requests as to the progress of the liquidation process, ZAHA said it was told by Mr Madondo in two letters last year that the first interim liquidation and distribution account would be lodged on November 30 last year.

“Thereafter, no communication was received from the first respondent regarding the convening of a second creditors meeting and lodging of accounts,” said ZAHA.

The housing association then wrote a letter to Mr Madondo on May 12 this year indicating it was contemplating seeking his removal if he did not lodge the liquidation reports with the Master of the High Court.