McDowell’s liquidation goes to Supreme Court

• Investors to wait longer to recover $12m NKULUMANI MLAMBO MASVINGO – Investors who put their money into the collapsed McDowell's In...



• Investors to wait longer to recover $12m
NKULUMANI MLAMBO

MASVINGO – Investors who put their money into the collapsed McDowell's International money-lending scheme will have to wait longer in their bid to recover $12 million owed them as directors have made an appeal to the Supreme Court to stop the liquidation of the company.
More than 20 000 investors mainly from Masvingo lost millions of dollars when the pyramid scheme run by McDowell's until 2012 collapsed. The Reserve Bank of Zimbabwe withdrew the money-lending company's licence when The Mirror broke the story of the illegal money-lending scheme and hundreds of people turned up to demand their money back.
Some people sold houses and other properties in order to invest in the pyramid scheme and they lost everything when the scheme which had sent Masvingo into a frenzy collapsed.
The investors went to the High Court to seek liquidation of the company so that they could get their money back which was granted.
However, The Mirror is informed that the major shareholders Member Chipambaand his wife, Linda Dewa have since made an appeal to the Supreme Court to stop the liquidation of their company.
Chipamba under case number (SC387/16) seeks to overturn a decision by The High Court in June which gave the judiciary manager Winsley Militala the go ahead to liquidate the company.
This was confirmed by Natsai Machekano of Titan Law Chambers in Harare who is representing the judiciary manager.
Chipamba and Dewa who are the co-directors of McDowell's want the superior court to stop the liquidation of the company which was granted in June by Justice Amy Tsanga.
The High in March 2015 converted the Provisional Judicial Management Order of 2013 into a Provisional Liquidation Order and the company was due to be wound up in June 2015.
In April 2015 Chipamba and Dewa approached the High Court to rescind the Provisional Liquidation Order on the basis that the notice was delivered to the wrong legal representatives hence they were not aware of the court ruling and date.
On June 8, 2016 Justice Tsanga dismissed the shareholders' application on , "the rationale that the they could not seek to set aside a provisional liquidation order without showing that the company had prospects of becoming a successful concern and in the absence of creditors who have an interest in the matter," reads part of the statement.
Dewa and Chipamba then filed an appeal with The Supreme Court against Justice Tsanga's decision and the matter has not been given a hearing date.
The money collected from the public was used to buy various immovable properties in Masvingo, Bulawayo and South Africa including state of the art Lee's Inn Hotel in Rhodene Masvingo.business news

COMMENTS

advertisements
Name

advertisements,28,agriculture,45,As I see it,13,Business news,253,cartoon,2,Chibhorani talk,25,Comments,25,crime,327,Editor Pick,1,Education,205,Entertainment,185,Farming,2,fashion,5,Featured Post,4,Gossip,83,health,30,Local News,1007,Local Sport,36,News,989,News Ticker,3,Obituaries,1,Opinion,11,Police Alert,1,Recent,22,Religion,1,social,35,Sport,267,Story of the Week,2,Swag,1,swops,25,Swops Harare Region,10,Swops Manicaland Region,16,Swops Mashonaland Central,13,Swops Mashonaland East,11,Swops Mashonaland West Region,13,Swops Masvingo Region,22,Swops Matebeleland Region,9,Swops Midlands Region,12,Top Stories,156,Travel and Leisure,8,Your Views,8,
ltr
item
The Mirror: McDowell’s liquidation goes to Supreme Court
McDowell’s liquidation goes to Supreme Court
https://2.bp.blogspot.com/--ETzPQtVqcs/WBT84vABMQI/AAAAAAAATP8/ePkDA-TwHn0p6qADmgTlYu2IWAEcpnjEQCK4B/s320/lees%252Binn-797142-766033.jpg
https://2.bp.blogspot.com/--ETzPQtVqcs/WBT84vABMQI/AAAAAAAATP8/ePkDA-TwHn0p6qADmgTlYu2IWAEcpnjEQCK4B/s72-c/lees%252Binn-797142-766033.jpg
The Mirror
http://www.masvingomirror.com/2016/10/mcdowells-liquidation-goes-to-supreme.html
http://www.masvingomirror.com/
http://www.masvingomirror.com/
http://www.masvingomirror.com/2016/10/mcdowells-liquidation-goes-to-supreme.html
true
828417174542397797
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy