Judge bails out FNBS

Staff writer

A High Court judge Justice Charles Hungwe has issued an order stopping the Reserve Bank of Zimbabwe’s application seeking the liquidation of First National Building Society (FNBS).
NT>


The court ordered that the liquidation of the building society be stayed until the founding directors, namely Samson Ruturi and Nicholas Musona, had filed their opposing papers.


The order means that the provisional liquidator of the society, David Scot of PriceWaterhouseCoopers, would not go ahead with his plans to dispose of the FNBS assets.


The judge found that there were anomalies in the manner in which Scot had been awarded the right to have a provisional liquidation.


The court also found that the major shareholders of the society had not been given the chance to respond when the decision to put the society under provisional liquidation was reached.


The major shareholders had not been cited as respondents in the first place. One of the two major shareholders, Ruturi said they would have the chance to present their papers which were not heard when the High Court initially ruled that the society be place under provisional liquidation. The initial papers went missing at the High Court. He said the two major equity holders would also seek to prove that the society is not insolvent as initially stated by the curator.


“We are also concerned about the fact that the provisional liquidator has also gone on to advertise the sale of the society’s vehicles when he has not been confirmed by the court as the liquidator,” said Ruturi.