Court orders seizure of insolvent MP’s assets

Source: Court orders seizure of insolvent MP’s assets – NewsDay Zimbabwe October 4, 2016

THE bid by Chegutu West MP Dexter Nduna (Zanu PF) to remain in charge of his Badon Farm Estate in Chegutu, recently received a body blow after the Additional Master of the High Court-Insolvency urged the court to issue a sequestration order on the grounds that the legislator had failed to service his $231 171 debt with Standard Chartered Bank.

BY CHARLES LAITON

In his report, the Master of the High Court-Insolvency, Reuben Mukavi, said he had studied the application filed by Standard Chartered Bank, which was seeking to recover the money owed by Nduna and his wife Scholastica Nduna, and had not found any facts or circumstances that would justify or warrant dismissal of the application.

“Section 12 (8) of the Insolvency Act enjoins the Master to report to the court any facts ascertained by him which would appear to him to justify the court in postponing the hearing of or dismissing a petition for sequestration,” Mukavi said in his report filed on August 30, 2016.

“I have studied the application in this case, and have not found any facts or circumstances that would justify the court in postponing or dismissing the application. Prima facie (based on the first impression), the respondents have committed an act of insolvency as evidenced by the nulla bona (no property to seize to pay off a court judgment) return of the sheriff attached as annexure ‘E’ to the application.”

But, Nduna dismissed the report claiming he was a victim of political persecution.

Nduna, who is chairperson of the Parliamentary Portfolio Committee on Transport and Infrastructure, dismissed reports that he had failed to service his bank debt, saying he was simply being targeted by his political rivals because of his anti-corruption crusade.

“I have been a very successful businessman until I decided to participate in active politics and have created enemies unknowingly. Some of these enemies are very influential and are involved in corruption,” Nduna said through his lawyer Everson Samkange.

“The responsibility of my portfolio is to superintend, interrogate and investigate dispassionately any form of corruption brought to our committee’s attention. I have been accused directly that I am throwing spanners in their deals. They want me to be out of that committee as I have refused to be corrupt … and I have unfortunately become a target.

“I am fully aware of many other Members of Parliament who owe the bank millions and they are not servicing their loans or being sued. In my case, I have been paying. I approached the senior bank manager and their lawyers and offered them to garnish my salary paid into my account. I am a farmer and have many cattle which I could sell and pay part of the debt. I have a vehicle, Ford Ranger, worth over $40 000. The allegation that I am insolvent is false and ridiculous.”

The MP also said while he was “not a millionaire, he was not a pauper”. He said he had filed an application for rescission of judgment, which prompted the bank to seek sequestration.

“I am in a position to pay the debt as I operate a vibrant farm and we realise an amount of $50 000 to $70 000 a month … my wife banks with Standard Chartered in her own personal capacity and has a substantial amount of money in her account.”

Nduna also said he was making an application seeking to have Winsley Evans Militala of Petwin Executor and Trust removed as the executor of his business accusing him of being a fraudster.

The matter is set to be heard on Wednesday this week.