More trouble at CFI?


Stalap Investments, a major shareholder in agro-industrial group CFI Holdings, has instituted legal action seeking to declare last month’s extraordinary general meeting (EGM), which cancelled a 2015 $18 million land-debt swap deal with Fidelity Life Holdings, null and void.

The raucous EGM was called for by Willoughby Investments, seen as influenced by Nicholas Van Hoogstraten, and approved the reversal of the disposal of an 81 percent shareholding in Langford Estates to Fidelity Life Assurance which helped to pay off combined debts of $18 million, owed to FBC Bank, Agribank, CBZ, the Infrastructure Development Bank of Zimbabwe, NMB and Standard Chartered.

Willoughby’s holds a 5.5 percent stake in CFI and has scheduled another EGM for Wednesday this week to remove directors, Douglas Mamvura and Ephraim Chawoneka who were appointed on May 30 this year.

Stalap today accused the EGM chairperson Ital Pasi of bias against its shareholders.

“Following the sudden resignation of the chairperson Grace Muradzikwa shortly before the EGM, the meeting was presided over by a self-elected chairperson, Ms Itai Valerie Pasi (Non-Executive Director) who conducted the meeting in a partisan manner,” Stalap said in a statement.

Stalap is a holding company for CFI shares owned by Zimre and the National Social Security Authority.

Stalap alleges that special resolutions were put to the vote during the EGM without any circular and without any question and answer session, and that Willoughby falsified the results which were published in the press.

“The poll was conducted by First Transfer Secretaries and none of the resolutions were declared carried. Willoughby’s however fraudulently thereafter published the results in the press stating that the third resolution was carried,” Stalap said.

The third resolution was meant to give CFI directors authority to reverse the Langford transaction.

“This is completely false and was made on CFI letterhead without authority of the board of CFI or Zimbabwe Stock Exchange, as required in terms of the listing requirements. Major shareholders have now instituted legal action to declare the above meeting and its results a nullity,” Stalap said.

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.


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