Mpofu to lose 50 properties over $2m debt

MACRO-ECONOMIC Planning and Investment Promotion minister and business tycoon Obert Mpofu is set to lose 50 properties he reportedly surrendered as surety to secure a $2 million loan from CBZ Bank after the financial institution approached the High Court seeking provisional sentence on a liquid document.


Obert Mpofu
Obert Mpofu

The Zanu PF secretary for finance — who owns companies such as Trebo and Khays, Maminza Transport, and Khanondo Safari and Tours — could be sitting on a crumbling business empire after some of his movable properties reportedly went under the hammer over an outstanding debt last year.

The minister owns immovable properties in Bulawayo such as Centrust Building, York House and Anchor House, among others, and some properties in Victoria Falls and Gwanda.

CBZ Bank on Monday this week filed summons under case number HC2220/17, after realising that Mpofu was not making efforts to service the debt he secured on behalf of his financial institution, the now-defunct Allied Bank Limited.

“The plaintiff (CBZ) claim is based on the following: A surety mortgage bond of $2 million executed by the defendant on behalf of the principal debtor, Allied Bank Limited, and in favour of CBZ Bank Limited over the defendant’s (Mpofu) immovable property known as certain piece of land situate in the District of Salisbury being Stand 2501 Glen Lorne Township measuring 4 395 square metres held under Deed of Grant 163/1998,” the bank said.

In its court papers, through its lawyers G N Mlotshwa and Company, CBZ Bank said it had decided to pursue Mpofu’s properties after realising that his bank was in January 2015 placed under liquidation and was currently not trading since it surrendered its banking licence to the Reserve Bank of Zimbabwe.

“The principal debtor, Allied Bank Limited, neglected or failed to pay the outstanding debt to the plaintiff before it was placed in liquidation. In terms thereof the principal debtor’s surrender of banking licence and subsequent placement into liquidation has rendered the debt due and payable,” CBZ Bank said.

“Despite demand being made on the 12th January, 2015, the amount remains unpaid and defendant has not disputed the debt.”

According to the court papers, on January 15, 2015, CBZ Bank’s head of recoveries and collections, one N Chanakira, wrote to Titan Law Legal Practitioners explaining to them the position as regards Mpofu bank’s debt.

“We hereby submit the above name (Allied Bank) for inclusion in our portfolio . . . We enclose the following copy documents: Short-term loan and 50 surety mortgage bonds. Proceed to place caveats on all the properties to safeguard the bank’s interest and proceed with the recovery process,” Chanakira said.

Mpofu is yet to respond to the summons. He also has a pending case with over 20 journalists laid off from his now-defunct The Zimbabwe Mail newspaper.

Several of Mpofu’s operations in the Hwange mining town have either closed down or relocated to Victoria Falls.

His Minus restaurant, Matetsi Meats butchery, KST Bypass fuel service station (all leased from Hwange Colliery Company), KoMpofu sports bar and KoMpofu butchery in Mpumalanga high-density suburb in Hwange closed almost two years ago.

The closure of his Hwange companies came hardly a month after the former Mines minister was dragged to the Labour Court by security guards at his Moya Security firm over salary arrears.

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  1. The diamond thief squandered all the loot in 5 light years already? He claims to be Mugabe’s first son, but Bob is not helping him from the 15bill loot stashed in Singapore yet it was Mpofu who stole on behalf of Bob and family. Life is not fair.

  2. Money gained through illicit deals never stays for long.

    1. VERY VERY true.

  3. and Bob says he doesn’t know of any of his minister who is corrupt. We are on our own guys..

  4. What goes around comes around.When people were crying that these ministers were chocking us people thought those were jokes.Let the pork fry by itself.

  5. Guys 50 properties is no joke

  6. A fool and his money are soon parted

  7. This is the calibre of men said to be leading this beloved Zimbabwe. Mpofu cant take care of his own investments and then he is expected to head investment promotion for a whole country!! Cry the beloved motherland. No wonder we are in such a state…big man cant run a mere bottlestore cum sports bar

  8. Thats why i always say that, a black Zimbo can not run a company and a black Zimbo can destroy the economy. Look at Mpofu now. A black Zimbo is good at grabbing companies from rightful owners and after that, fails to run them.
    Typical example is of a black Zimbo who grabbed a farm owned by a productive farmer some yrs ago, and if you look at the farm now, nothing meaningful is being done there.
    A black politician is usf to live a free life, and do not pay bills, do not pay workers, do not clear debts etc.
    You cant change a black Zimbo. Whether in hell or heaven, a black politician remain a black politician- greedy, corrupt, selfish, destructive etc.

  9. Greediness, corrupt and selfish.

    1. what has colour got to do with it?am just saying….corruption exists in all races,one doesnt have to be of any race,ultimately its about principles by which someone lives by…

  10. Very true.

  11. Full Time Rovha

    Yah its sad that Mpofu is on the downward trajetory and it usually only stops when one hits rock bottom. My take is that we are a country of part timers. Part time businessmen, part time farmers and even part time politicians. A jack of all trades is indeed a master of none. White farmers where known to stay full time at their farms only coming to Harare for suppliments at Farm and City. Indian businesspeople are known for being at their business premises full time opening and closing the premises themselves. But alas isu we think that one can be shef kuarmy and also master farmer. Big boss somewhere and also try to run a business during spare time. Even politicians, you here such and such is a big lawyer or Doctor somewhere yet wants also to appear like a firebrand politico. The list is endless. That is why we are a nation of averages. Zingizi gonyera pamwe.

    1. @Rovha, well said. Nothing to add, nothing to subtract.

  12. Wezhira wezhara

    Ndiyo Indigenization Policy. They take public funds from a Government controlled bank as loans and refuse to pay. Isu vamwe we are irritated everyday nema demands from Debt Collectors appointed by Government Hospitals like Parirenyatwa when you would have used your medical aid to access treatment.

  13. Wezhira wezhara

    Rovha wataura zvine musoro kudarika vanhu vese vandakambohwa vachipa comment.

  14. No matter how much money you may have never start a bank in Zimbabwe, at least for now…great men and women have failed in this sector. Obert could have easily become one of the wealthiest person in the country…we shall not dwell on the sources of his riches, but that fateful romance with the financial sector has set him back, and trust me they will take even what he legitimately owns.

  15. I won’t be satisfied until this guy awonda kunge tsono.

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