• Latest News

    Saturday, 29 October 2016

    McDowell’s liquidation goes to Supreme Court

    • Investors to wait longer to recover $12m

    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
    • Comment on The Mirror
    • Facebook Comments


    Post a Comment

    Item Reviewed: McDowell’s liquidation goes to Supreme Court Rating: 5 Reviewed By: Staff Reporter
    Scroll to Top