HomeLocal NewsENG’s Muponda sues bank for $15 million

ENG’s Muponda sues bank for $15 million


De-specified ENG director Gilbert Muponda has threatened to sue Interfin Banking Corporation over his 309 million shares worth $15,4 million which the latter is accused of having unlawfully acquired.

In a letter dated August 7, 2011, addressed to the managing director of Interfin Banking Corporation Raymond Njanike, by Muponda’s lawyers Gutu and Chikowero, Muponda warned he would take Interfin to court if his shares were not returned or the equivalent paid.

“Your bank took over the assets and liabilities of Century/CFX Bank. Interfin proceeded to acquire a controlling stake in CFX Financial Services Limited well aware of our client’s contention that the latter unlawfully and irregularly acquired our client’s 309 million shares in Century Bank,” read part of the letter.

The lawyers said the liquidator, Reggie Saruchera, had no authority to sell the shares hence they filed a court application sometime in 2004.

According to the lawyers, Interfin was the main beneficiary of the alleged irregular and unlawful disposal of the 309 million shares.

They accused Interfin of unjustly enriching itself while impoverishing Muponda.

“Hence our client demands that your bank compensates him to the tune of $15,4 million being 309 million shares multiplied by $0,05. As already stated, Interfin assumed all the assets and liabilities of CFX Bank and Century Bank,” they wrote.

“Further and as already stated, Interfin was fully aware of our client’s equity claim against CFX Bank before it concluded the transaction. Muponda was then specified and could not protect his interest. We also wrote to the Minister of Finance to place our client’s position on record.”

The lawyers questioned why the 309 Century Bank shares were sold before valuation had been agreed upon with the creditors and contributories.

They argued that the shares were not supposed to be sold but to be valued and taken over in lieu of dividends.

Muponda was specified on May 28, 2004 and was de-specified on April 29, 2011.

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