HomeBusiness DigestCurator blocks challenge to Trust's vehicle sale

Curator blocks challenge to Trust’s vehicle sale

Shakeman Mugari

TRUST Bank’s curator has denied the major shareholders of the bank — Trust Holdings — permission to challenge the sale of their vehicle

s by the state-owned, Zimbabwe Allied Banking Group (ZAGB).

The decision by curator Peter Bailey of KPMG, comes a day after the High Court rejected Trust’s initial bid to stop the auction of the cars on the basis that they had not sought permission from the curator as required by the law.

Trust Holdings had yesterday asked for permission from the curator to allow them make an application seeking to recover the vehicles which they said ZABG unlawfully sold on Wednesday.

Bailey told the shareholders through his lawyers that he could not give them permission because there were no prospects of success. Trust also wanted to use the permission to block the auction of other assets including furniture which ZABG would sell on Saturday. About 22 cars belonging to Trust were this week auctioned by ZABG who are insisting that they own the assets.

ZABG was however forced to withdraw 18 cars belonging to Royal Bank after the shareholders were granted an order stopping the sale. Trust unsuccessful tried to block the sale claiming that the vehicle still belonged to them and that their case against ZABG had not yet been finalised.

Trust Holdings said the vehicles were still subject to dispute because they had appealed against the takeover of their assets to the Minister of Finance, Herbert Murerwa who was yet to make a decision on the matter.

They said ZABG did not have the right sell the assets which they illegally acquired from Trust Bank.

The shareholders were citing an earlier Supreme Court ruling which said the purported sale of Trust Bank’s assets to ZABG in 2005 was “null and void, and of no force or effect”.

Trust Holdings company secretary Tererai Mafukidze yesterday confirmed that they had been denied permission but said they were still going to push for the recovery of the assets.

“We are going to court to seek leave of the court to litigate in the light of the curator’s hostility,” Mafukidze said.

“We believe protection of the law as set out in the constitution has been abrogated. In addition, property rights have not been given their due regard. We’re notifying all buyers of the cars that we will take legal action to recover the assets.”

He said the decision to deny them the permission confirms their fears that the curator lacks independence.

“This is confirmed by the fact that the curator gets legal advice from a director of ZABG who in the normal case would have taken part in the decision to sell Trust bank’s asset by ZABG.”

Below is a list of Trust Bank vehicles that were auctioned by the ZABG on Wednesday. Prices are in billions.

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