Published On: Tue, Oct 25th, 2016

DeMbare in turmoil over debt

Dynamos’ off-field problems continue to mount after CBZ Bank Limited was awarded a writ of execution to attach the club’s property and that of former executive members owing to a 2011 debt.

 


File picture of Dynamos players on the pitch

With interest rates and legal costs, DeMbare are now required to pay approximately $250 000 to offset the debt according to the writ of execution handed down by Chief Justice Godfrey Chidyausiku on October 7 this year.

The Glamour Boys have failed to service a loan with the bank which dates back to 2011 when they used the funds borrowed from the bank to travel to Algeria for their African Champions League qualifier against MC Algiers.

Besides the club, the other five respondents listed on the writ of execution include current board chairperson Bernard Marriot Lusengo and former executives Farai Munetsi, Michael George Ignatius, Richard Chiminya and Harrison Mbewe.

Munetsi, Ignatius, Chiminya and Mbewe were in the executive committee that applied for the loan on behalf of the club hence they have been named as respondents in the suit.

“You are required and directed to attach and take into execution the movable goods of Dynamos Football Club, the above mentioned 1st Defendant, . . . Ignatius, the above mentioned 2nd Defendant, . . . Mbewe, the above mentioned 4th Defendant . . . and  . . . Munetsi, the above mentioned 5th Defendant and . . . Lusengo, the above mentioned 6th Defendant and of the same cause to be realised the sum of $247 505,75 plus interest @ 30 percent p/a from 27/3/12 until date of issuing summons together with costs on a Legal practitioner and client scale for CBZ Bank Limited, the Plaintiff, which it recovered by judgment of this Court dated 21st of June 2012, in the above-mentioned suit,” Justice Chidyausiku instructed the Sherriff of the High Court.

Bailiffs have already attached a number of movable properties from the respondents’ homes and now awaiting removal.

In an unsuccessful bid to try and block the attachment of their property, lawyers representing the former executive members had written to Muvingi and Mugadza Legal Practitioners, who are representing CBZ in the matter.

“We engaged your client and it was agreed that our clients will be excused from payment of the debt. Your client undertook to pursue the football club and members of the current management,” reads the letter.

“May we advise that other debtors who excused our clients were paid through attachment of gate takings at home matches and garnishee of Dynamos dues from the PSL.”

This legal battle between DeMbare and CBZ has dragged on since 2012 which has left some of the affected respondents crying foul over the matter.

“We were acting as agents on behalf of the club when we applied for the loan from CBZ and I think it is unfair for us to be persecuted for this debt when we long left Dynamos,” said one of the respondents.

“Dynamos, the club and the current board should have serviced this debt a long time ago rather than keep it under wraps; look, now it is affecting some of us who are no longer associated with the club in any way.”

The Daily News was shown a letter written by Marriot and addressed to the former executive members when they were booted out in 2011.

“The Board of Directors of Dynamos Football Club (Pvt) Ltd at their meeting held on Saturday June 25, 2011 unanimously resolved to dissolve the present Executive Committee of Dynamos Football Club, which they hereby do,” reads the letter.

“You have now ceased being . . . of Dynamos Football Club with effect from the 25th June 2011. Please be advised that the board is not obliged to give or state the reason for this action.”

The former executive member said: “Surely, this letter clearly states that I have nothing more to do with this club since our executive was dissolved. Even though we applied for the loan, it was on behalf of the club not in our personal capacities.” Daily News

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