HomeLocal NewsMohadi cries foul over liquidated firm

Mohadi cries foul over liquidated firm


State Security minister Kembo Mohadi has approached the High Court seeking the removal of Barbra Lunga as liquidator of his insolvent company, accusing her of fleecing him large sums of money through the illegal sale of the firm’s assets.


State Security minister Kembo Mohadi
State Security minister Kembo Mohadi

According to Mohadi, his company, Nerry Investments (Pvt) Ltd, was fraudulently put under liquidation sometime in 2014, even though it had no debts or creditors and was financially sound and able to pay its debts.

In his application filed early this month, Mohadi, who is cited as the first applicant alongside one Josias John Moyo, said the move to have his firm liquidated was done mala fide (in bad faith) with a serious intention to prejudice other contributories” but its liquidator had made the situation worse.

The minister, however, accused Lunga, who is cited as the first respondent alongside Nerry Investments (Pvt) Ltd) and Deputy Master of the High Court (Bulawayo) as co-respondents, of “corruptly handling the affairs of his liquidated firm” with a view to benefit herself, hence the current court application to have her removed from office.

“First respondent (Lunga) purporting to pursue her duties of liquidator…went on to sell all the aforementioned assets of Nerry Investments (Pvt) Ltd to a third party for an unknown price. The sale remains a top secret …” Mohadi said in his founding affidavit.

“May I hasten to add that Nerry Investments was fraudulently put into liquidation, had no debts, had no creditors, was financially sound at the time and was able to pay its debts. The liquidation was done mala fide with a serious intention to prejudice other contributories.”

Mohadi further said Nerry Investments was the legal owner of the whole and undivided stand number 1418 Beitbridge Township by virtue of a lease to buy agreement it had entered into with Beitbridge Town Council, which lease agreement was due to expire in June this year until the “time of the fraud in August 2014”.

“Now between 2014 and 2015, acting in connivance with one shareholder of the liquidated company called McGillivray Dawson and without leave of this honourable court, without consent or knowledge of the Deputy/Master of the High Court, neither with a resolution of creditors nor that of contributories… first respondent went on to sell all the aforementioned assets of Nerry Investments…. In the premise, it is fair and in the interest of shareholders of the liquidated company that the 1st respondent be removed from office of liquidator of Nerry Investments,” he said.

“It is also important to stress that the immovable property, namely stand number 1418, had been fraudulently subdivided using some oiled hands in various government departments to stand number 1419 which was subsequently registered in the name of another company called Spoornet Investment (Pvt) Ltd, with a view to prejudice myself.”

The minister further said sometime in 2014, Lunga, while allegedly working in connivance with McGillivray Dawson and some officers in Beitbridge, used “the arm of the law and some oiled underhand”, fast-tracked and registered both stand numbers 1418 and 1419 into Red Queen Trading (Pvt) Ltd and subsequently into a third party.

“The purchase price realised by sale of the immovable and movable properties of the liquidated company remains a mystery and a top secret of the first respondent and is not even known as well by third respondent (Master of the High Court) who has also been kept in the dark,” he said.

He added that even the bank account opened in the name of the company in liquidation had remained a top secret as well.

The matter is still pending.

Recent Posts

Stories you will enjoy

Recommended reading