FNBS files go missing

THE saga at the troubled First National Building Society (FNBS) took a new twist this week amid revelations that papers filed by the founding directors against the provisional liquidation of the society were missing from the file when the

High Court ruled in the case last month.


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

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

The High Court passed a default judgement after the respondent (FNBS) had neither opposing papers nor was represented while a Mr Fitches represented the applicant.

In her judgement High Court Judge Justice Susan Mavangira ordered that FNBS be provisionally wound up pending the granting of an order in terms of paragraph 3 hereof or the discharge of this order.

Justice Mavangira ordered that David John Scott of PricewaterhouseCoopers be appointed as Provisional Liquidator of the respondent company (FNBS) with the powers set out in paragraphs (a) to (h) of Subsection (2) of Section 221 of that Act.

Justice Mavangira ordered that any interested party “may appear before this Court sitting at Harare on the 19th day of May 2004 to show cause why an order should not be made placing the respondent company in liquidation and order that the costs of these proceedings shall be the cost of the liquidation”.

Ruturi and Musona this week maintained that they had filed papers against the liquidation of the society on March 16 which was within the stipulated period.

“We filed papers against the liquidation of the society and we are surprised that the papers we filed were not in the file presented to Justice Mavangira,” they said in a statement.

Ruturi and Musona questioned why the Reserve Bank of Zimbabwe (RBZ) was the applicant while FNBS was made the respondent when the society was under a curator appointed by the RBZ.

“In such a case it was the RBZ versus RBZ,” they said. – Staff Writer.

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