HARARE – Details of how local financial services firm Access Finance (Pvt) Ltd and related entities’ shareholders acrimoniously fell out have emerged, showing company executives fiercely clashed after the CEO reneged on a deal to sell 10 percent equity to the managing director at a time they were minting money.
Court documents obtained by ZimLive.com show that former Access Finance CEO Singathini Raymond Chigogwana and former managing director Senziwani Sikhosana fought over a shareholding deal, leading to an acrimonious split.
Both Chigogwana and Sikhosana have since left Access Finance under a cloud of controversy, endangering the survival of the company.
When they started working together in 2014, the two businessmen had agreed that after sometime Chigogwana, who was the majority shareholder, would sell 10 percent of his shareholding to his partner, Sikhosana.
As chief executive, Chigogwana owned 54 percent shareholding, Sikhosana, who was managing director 20 percent, and their chairman Isau Bwerinofa 26 percent.
However, when the time came to do the deal Chigogwana reneged. A dispute subsequently erupted and in the process deteriorated into a bitter row, which made an amicable settlement or working together going forward impossible.
Chigogwana and Sikhosana were business partners running several companies, Access Forex (Pvt) Ltd, Access Finance (Pvt) Ltd, Tara Capital (Pvt) Ltd, Thirty-Six Mountbatten (Pvt) Ltd as well as Access Forex SA (Pty) Ltd, until a nasty fight broke out over shareholding last year, leading to the court action.
The battle over the companies’ equities and properties has left the businesses on the brink after the two key shareholders exited the business in two separate deals amid irreconcilable disagreements.
Sikhosana left last year and Chigogwana announced his exit last week.
Chigogwana will be replaced as CEO by Salim Eceolaza, the former Simbisa Brands Limited group finance director who steered its unbundling from Innscor Africa Limited and oversaw its listing on the Zimbabwe Stock Exchange.
The fallout between the two forced Sikhosana to sell his shareholding to the company. Initially he wanted US$1 million, but he eventually agreed to US$600,000 reluctantly.
The US$600,000 buyout deal included a cash payment of US$280,000 less US$140,000 as an offset transaction over Sikhosana’s debt to the company, with the US$140,000 balance being paid into two installments of US$80,000 and US$60,000 separately.
It was also agreed Sikhosana would get three townhouse units valued US$320,000.
The cash payments were delivered, but the properties and title deeds have not yet been transferred.
As a result, Sikhosana had to go to the High Court to claim his properties.
The applicants in case HC1007/23 are Sikhosana and his entities Ferden Investments, Rock Drill Mining and Seanmart Investments, while the respondents are Chigogwana, Bwerinofa, Thirty-Six Mountabatten, Access Finance, Access Forex, Tara Capital, The Sheriff of the High Court and the Registrar of Deeds and Companies.
Specifically, the two former business partners are currently at each other’s throats over a real estate development – No. 36 Mountbatten Complex – in Marlborough, Harare, which has 37 townhouse units valued US$3.9 million. Three of those properties are subject to the court action.
Sikhosana is seeking a court order to “compel transfer of the immoveable property known as Units number 19, 8 and 22 in certain piece of land situate in the District of Salisbury called Lot 88 Marlborough Township of Marlborough measuring 1.1525 hectares, held under deed of transfer No. 3816/2027 dated 27th September 2017.”
The draft order sought adds: “The 1st, 2nd and 3rd respondents (Chigogwana, Bwerinofa and 36 Mountbatten respectively) be and are hereby ordered to ordered to sign all transfer papers, make all appearances, pay all tax obligations and related imposts as may be necessary to effect transfer of transfer Units number 19, 8 and 22 in certain piece of land situate in the District of Salisbury called Lot 88 Marlborough Township of Marlborough measuring 1.1525 hectares, held under deed of transfer No. 3816/2027 dated 27th September 2017 to the 2nd, 3rd and 4th applicants (Ferden, Rock Drill and Seanmart) respectively within 14 days of the granting of this order.
“In the event that 1st, 2nd and 3rd respondents fail or refuse to transfer the housing units as ordered in (1) above, then in that event 4th respondent be and is hereby authorised to sign and execute all papers, attach and sale in execution such property of the 1st, 2nd and 3rd respondents as is sufficient to pay for all and any lawful taxes, imposts and costs as are conventionally payable by a transferor and do all such things as are necessary to pass transfer of units 19, 8 and 22 to the 2nd, 3rd and 4th applicants respectively and the 5th respondent be and is hereby ordered to effect transfer in his records to give effect to the transfer.
“Alternatively, the 1st, 2nd, 3rd, 4th, 5th and 6th respondents jointly and severally the one paying the other to be absolved be and are hereby ordered to pay the to the applicants the sum of US$320,000 being the agreed value for units number 19, 8 and 22…
“In the event that the 1st,2nd, 3rd, 4th 5th and 6th respondents fail or refuse to pay the sum of US$320,000 in terms of paragraph (4) above, then in that event the 7th respondent be and is hereby authorised to attach such property of the 1st, 2nd, 3rd, 4th, 5th and 6th respondents and cause to be realised the sum of US$320,000 and pay over to the applicants.
Sikhosana also wants Chigogwana and the other respondents to pay all the costs of the transfer of the properties as well as legal costs.
