Maravi

Interfin faces massive lawsuits

Interfin faces massive lawsuits
Saturday, 02 June 2012 00:00
Herald Reporter

FIRMS and individuals who invested millions of dollars with Interfin Bank are likely to lose out amid reports of gross mismanagement of the funds by the bank. Many clients reportedly failed to access their money on demand.

Some of the companies are already facing financial crises owing to failure to access their money. It is understood that the bank is facing liquidation as monetary authorities seek to protect depositors. The bank’s top depositors have a combined US$70 million in deposits.

Some of them are, Al Shams Global with US$22, 393,731, the Ministry of Finance deposited US$17, 913, 689 while NSSA has US$15, 371, 204.

Zimra deposited US$3, 053, 743, ABC Holdings US$3, 000, 000 while Seed Co has US$2, 549, 782, POSB US$1, 812, 500 and High Court Temp deposited US$1, 737, 191.
Swixfield Investments and Havercroft NA also deposited US$1, 214, 675 and US$1, 167, 606 respectively.

As a result, the bank is now facing lawsuits as companies and individuals swarming the High Court in a bid to recover their deposits.

Alshams Global BVI Ltd is owed US$26 million while Second Nominees (PVT) Limited is claiming US$3 million, which it says it lent the bank two years ago through a revolving credit facility.

However, Interfin defaulted in making due punctual repayments and as at February 29, 2012 it had paid US$935 944, 43, leaving a balance of US$3 million in capital and US$151 666, 67 interests, which it has failed to pay despite demand.
In his claim, Mr James Maposa is demanding US$500 000 from Interfin.
Through his lawyers Scanlen and Holderness, Mr Maposa submitted that on October 27, last year, he deposited US$500 000 to mature on November 25.

On November 25, he said he rolled over the investment for 30 days.
Prior to the expiry of the 30 days, Mr Maposa gave notice to Interfin not to roll over his investment as he intended to withdraw the money.

“By arrangement with the defendant (Interfin), the plaintiff (Mr Maposa) completed a Real Time Gross Settlement form on January 4, 2012 requiring the defendant to

pay the sum of US$500 000 to his agent Olmac Zimbabwe Limited,” his lawyers submitted.

“In breach of its undertaking, the defendant has failed and or neglected to pay the plaintiff’s agent or to the plaintiff the said sum of US$500 000, 00 or any portion thereof.

“In all the circumstances, the plaintiff is entitled to cancel the contract between the parties and to repayment of the capital and interest accumulated thereon.”
In breach of its undertaking, Interfin has reportedly failed or neglected to pay Mr Maposa.

In all circumstances, Mr Maphosa averred that it was agreed that the money would accrue interest at the rate of 20 percent per annum payable monthly in arrears or credited to his account.

FBC, is claiming US$309 000 plus interest at the rate of 25 percent per month calculated on a daily balance and compounded on a monthly basis as from 1 February 2012 to the date of payment in full.

City of Masvingo is also claiming US$110 000 that it transferred through Real Time Gross for the purchase of motor vehicles from Zimoco.

“On the 28th of February 2012, plaintiff presented a Real Time Gross Settlement (R.T.G.S) application form, serial number 011955 for a sum of US$110 000 payable to the account of Koodant Investments (PVT) Ltd trading as Zimoco’s Account at African Banking Corporation, ABC Zimbabwe, Mt Pleasant Branch,” City of Masvingo submitted through its lawyers Chihambakwe, Mutizwa and Partners.

The city argued that there was money in its account to cover for the payment adding that Interfin Bank knew that the payment was for a deposit of the purchase of vehicles to be used by the city.

“Defendant failed to perform its statutory duty and to act in good faith by failing to transfer the sum of US$110 000, 00 into Zimoco’s Account as instructed by Plaintiff.

“Despite demand, Plaintiff has failed to pay the sum of US$110 000, 00,” averred City of Masvingo.

Labels: INTERFIN BANK

posted by MrK @ 4:21 AM