Ex-freedom fighters challenge Zexcom liquidation

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BULAWAYO — Four hundred and seventeen members of the Zimbabwe Ex-Combatants Foundation, Zexcom, have filed papers with the Bulawayo High Court challenging a provisional order granted through a default judgment in favour of three shareholders who want the company liquidated.
The disgruntled ex-fighters are opposing a bid by war veterans Andrew Ndlovu, Robert Mlalazi, and John Ngwenya to have the firm’s assets liquidated on the basis of alleged mismanagement of funds.
The top managers allegedly embezzled funds put together by the ex-freedom fighters when they received demobilisation payments soon after independence three decades ago.
But the current managers of the fund dispute the allegation.
Bulawayo High Court judge, Maphios Cheda, recently granted a default judgment against Zexcom and placed the fund under temporary liquidation.
The 417 argue that the provisional liquidation order was granted as a result of fraudulent activities by Ndlovu and his colleagues.
They argue Ndlovu forged a signature on the certificate of service to misrepresent that Zexcom had been served with court papers when in actual fact it had not.
Ndlovu’s forgery case is at the courts.
The court is awaiting a report from the handwriting experts department (QED) to verify the signature on the certificate of service.
Last week, Justice Cheda issued a ‘joinder’ order that facilitated the joining of the 417 affidavits filed in court with the other heads of arguments that had been put forward in the case.
In his chief opposing papers in case HC 1717/09, Shelter Mchechesi Mpofu, through lawyers, Cheda and Partners, charged that the application for liquidation was premised on greed.
He said it would be serious miscarriage of justice should the court grant a full liquidation order of the company given that only three out of 4 392 shareholders were the ones applying for the company’s liquidation.
“If the respondents are aggrieved (by the management of the fund), they should seek a change in the directorate or management (of the company)…This will help to address their grievances instead of liquidating the company.
“This is selfish indeed,” said Mpofu.
Mpofu argued the aggrieved members, who hold 66 shares each, should be allowed to sell off their shares than to have the company liquidated.