FNBS curator under pressure to quit

Ndamu Sandu

TROUBLED First National Building Society (FNBS) curator David Scott is facing mounting pressure from his employers PriceWaterhouseCoopers (PWC) to end his marriage with the society, it is reliabl

y understood.



Scott was appointed curator of FNBS last year after two founding directors – Samson Ruturi and Nicholas Musona – were arrested for allegedly defrauding the society of $1 billion.



His term of office runs until end of April.


Ruturi and Musona have a combined shareholding of 89,74% in the holding company First National Holdings Ltd (FNHL).


Sources say the partners held a meeting where Scott’s involvement at FNBS was discussed.


“The partners said Scott’s involvement with FNBS was tarnishing the image of PWC and he had to resign to preserve the image of PWC,” the source said.


A partner at PWC Lihor Spazolli told businessdigest this week that he was not aware of any meeting that took place to decide Scott’s fate.


“I am a partner but I am not aware of that meeting. There is no problem and people always speculate. Speak to Scott,” he said.


Scott was evasive when asked to comment about the meeting held to discuss his fate at FNBS.


“How would you know what was said at a private meeting? No such partner conversation or observations took place which makes me think something mischievous is happening,” he said.


Since last year FNBS has been rocked by boardroom squabbles pitting founding directors in one camp and FNHL chairman Michael Mahachi, FNBS general manager and company secretary Morgan Moyo and Gerald Mlotshwa respectively in the other.


Businessdigest revealed in January that there were behind-the-scene manoeuvres for Zimnat Life Assurance Company Ltd with 4,40% equity to garner a controlling stake in the holding company.


Last month High Court judge Tendai Uchena dismissed an urgent application by the Reserve Bank of Zimbabwe to put the society under liquidation.


Ruturi and Musona were not served with court papers on the grounds that they had no locus standi, that is, competence to sue or be sued.

Justice Uchena said by virtue of having a controlling stake in FNHL that wholly controls FNBS, Ruturi and Musona had a direct and substantial interest in the subject matter of the litigation before the court.


If the court had ruled for liquidation, it would have effectively meant that the founding directors had been kicked out of the society and a new team would then be appointed to run the affairs of the society.