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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 27^th September 2017.”

The draft order sought adds: “The 1^st, 2^nd and 3^rd 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 27^th September 2017 to the 2^nd, 3^rd and 4^th applicants (Ferden, Rock Drill and Seanmart) respectively within 14 days of the granting of this order.

“In the event that 1^st, 2^nd and 3^rd respondents fail or refuse to transfer the housing units as ordered in (1) above, then in that event 4^th respondent be and is hereby authorised to sign and execute all papers, attach and sale in execution such property of the 1^st, 2^nd and 3^rd 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 2^nd, 3^rd and 4^th applicants respectively and the 5^th respondent be and is hereby ordered to effect transfer in his records to give effect to the transfer.

“Alternatively, the 1^st, 2^nd, 3^rd, 4^th, 5^th and 6^th 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 1^st,2^nd, 3^rd, 4^th 5^th and 6^th respondents fail or refuse to pay the sum of US$320,000 in terms of paragraph (4) above, then in that event the 7^th respondent be and is hereby authorised to attach such property of the 1^st, 2^nd, 3^rd, 4^th, 5^th and 6^th 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.

Malvern Nkomo

Herald Reporter

Four schools have made it to the finals of the 2023 Capital Markets High Schools Quiz competition to be hosted this Friday by our sister publication Business Weekly in partnership with UK-based Financial Markets Indaba.

These schools include: Errymaple International School which won in Pool A, Marist Nyanga High School from Pool B, Midlands Christian College which won in Pool C and Cygnet Private College from Pool D.

The schools, which battled it out on Thursday and Friday last week will now have to compete to be champions in the final quiz competitions at the Management Training Bureau in Harare.

Representing Errymaple International School, Team Captain Calvin Makanza, said, “Participating in the quiz was a bit tough but also felt great considering that there were four teams battling for first place.”

He also said being part of the competition requires one to be tactical in terms of speed and accuracy.

“The lessons I have learnt from participating is that we need to advance our knowledge and be well prepared.

“Now that we have made it to the finals we now have the duty to polish up the areas we were struggling with so that we emerge the winners of the overall quiz competition,” said Makanza.

Errymaple International School is based in Zvishavane, the Midlands Province in Zimbabwe.

Learner, Emmanuel Chidzimba representing Marist Nyanga, said: “It feels really great to be part of the quiz. We started on a low note but we still managed to recover and we managed to win.

“The goal now that we have secured our place in the finals we have to keep on moving forward and keep the concentration for us to be crowned the champions.

“This is our first time participating, last year we did not know that these competitions existed,” said Chidzimba.

“As a commercials student, this competition helps me in my studies and subjects like Economics and Accounting. One of my ambitions is to become part of the Zimbabwe Stock Exchange that is why I am majoring in these commercial subjects.

“I am glad these competitions are educational because it is not always about competition but it is about what you are going to learn and the experiences that you acquire.

“The pressure now is a bit low but we still have the finals ahead of us and we need to prepare ourselves,” he said.

Midlands Christian College team captain, Tashinga Denga said; “Being the winner of pool C feels quite great. Some of my team members were quite anxious but at the end of the day we pushed through and hopefully, we will do the same thing when we come back for the finals.”

Anesuishe Sasa from Cygnet Private College said; “It is a privilege for me and my colleagues to have won in this round and the lesson we derived from participating is that it is never too late to do the right thing. So winning this competition gives us hope and we now have to prepare for the finals so that we become the ultimate winners.”

Headline sponsor Old Mutual said; “Old Mutual Investment Group (OMIG) is delighted to sponsor this year’s Capital Markets High Schools Quiz as the headline sponsor. The Quiz, which Financial Markets Indaba hosts in partnership with Business Weekly, provides a vital platform to motivate, inspire, encourage, and reward High School students in their quest for knowledge and give them the opportunity to celebrate their achievement as part of a high profile, national competition.

“Old Mutual views the quiz as an essential platform to educate high school students and the entire nation on the critical role played by capital markets in fostering a savings culture among the general populace, which savings will contribute towards economic development. Old Mutual runs an extensive financial education programme, and this sponsorship enhances our reach, particularly to high school students.

“Our view is that every individual ought to have some level of appreciation or understanding of financial products offered in Zimbabwe. This is to ensure that every investment or savings decision is informed, with clarity on the financial benefits to be derived and the amount of risk inherent in those products,” said Old Mutual.

“At Old Mutual, we are passionate about financial education and participation by all categories of investors in financial and capital market activities, hence our sponsorship of this year’s event. As a key player in the financial and capital markets, we offer a wide range of affordable investment products for a range of investors. Our product suite enables investors to choose products that best suit their investment objectives, risk appetite and investment horizon,” it said.

Olivine Industries through their Buttercup brand was also the headline sponsor of the 2023 quiz competition.

POSB public relations manager, David Makacha said; “As POSB we are proud to be part of the Capital Markets High School Quiz initiative which seeks to educate and empower the next generation of investors and entrepreneurs. The Bank is committed to providing affordable and accessible banking solutions to all Zimbabweans, especially the youths to promote financial inclusivity.

“We are delighted to sponsor the Capital Markets High School Quiz Competition, which aligns well with our vision of creating a financially inclusive society. We believe that this competition will inspire and equip young people with the necessary financial literacy and skills to participate in the capital markets and create self-jobs when they leave school,” he said.

Other sponsors of the quiz include Milano Office Chairs, Glass Creations, Tika Shoes, Tigere Property Fund, AFC Holdings, Chicken Inn, C-Trade, Management Training Bureau and National Foods through their Nutri Active brand.

CBZ recorded total deposits of ZWL$4,52 trillion and total advances amounting to ZWL$1,75 trillion.

CBZ Holdings Limited says it is keeping a hawk’s eye on the global interest rates with a view to tapping into favourably priced lines of credit for the benefit of its customers.

The financial institution leverages on its huge balance sheet to support new and expansion projects in the mining, agricultural and infrastructural development sectors, among others.

In a statement accompanying the company’s financial results for the half year ended June 30, 2023, chairperson Marc Holtzman said the group would continue supporting Zimbabwe’s economic sectors.

“On the global level, the decision by some central banks to halt interest rate hikes provides some prospects for the gradual reduction in the cost of global capital,” he said.

“Therefore, the group will continue to monitor developments around global interest rates with a view to tap into favourably priced lines of credit for the benefit of its various customers.”

Holtzman said the group was making inroads into the renewable energy sector and was mobilising resources to support clients in that sector.

“Increased focus on climate change adaptation and mitigation coupled with intermittent power shortages is also expected to stimulate further investment in green energy and related technologies.

“The group has already made inroads into the renewable energy sector, and it will continue to mobilise resources to meet and support its clients’ growing demands in this space.”

He also noted that the economy is expected to remain strong, with the mining and construction sectors dominating.

“Going forward, key economic sectors are expected to remain strong, providing significant upside potential for the economy.

“Activity is expected to remain elevated in the mining sector, particularly precious and battery metals subsectors, thanks to high global demand.

“The local construction sector will continue to witness visible growth, driven by residential construction as well as public sector investment projects,” Holtzman added.

The group’s profit after tax for the period under review was at ZWL$543,88 billion, up 582% compared to the same period last year.

Total comprehensive income increased by 595% to ZWL$753,70m billion, while total assets stood at ZWL$6,52 trillion against total equity of ZWL$1,30 trillion.

CBZ recorded total deposits of ZWL$4,52 trillion and total advances amounting to ZWL$1,75 trillion.

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