Kamushinda fights cost order
The two Zimbabwean entities that are shareholders in the liquidated SME Bank continue their attempts to stave off any probing into their role in the bank's downfall.
Metropolitan Bank of Zimbabwe and World Eagle Investment have denied liability to pay the N$750 000 cost security demanded by SME Bank liquidators David Bruni and Ian McLaren.
In their High Court application, Bruni and McLaren say they are entitled to demand the cost security in terms of the multiple-layered court cases against the Zimbabwean firms, because MetBank and World Eagle are foreign entities.
Judge Herman Oosthuizen yesterday postponed the matter until 16 November and ordered that the cost security be settled.
MetBank and World Eagle are both shareholders in the liquidated SME Bank.
Zimbabwean national Enock Kamushinda, a director of MetBank and World Eagle, had applied to the High Court for an interdict against Bruni and McLaren to stop them from exercising any of their liquidation powers.
Kamushinda wants to prevent the liquidators from continuing any investigation into the two entities at any commission of inquiry in Namibia or elsewhere.
He has asked the Master of the High Court in Namibia to review and set aside the appointment of Bruni and McLaren as the provisional liquidators of the SME Bank.
Background
Kamushinda says while a High Court order placed the SME Bank in liquidation, MetBank and World Eagle have appealed against this ruling in the Supreme Court. He says this appeal remains pending and will be heard today.
He argues that the appointment of Bruni and McLaren was “wholly flawed” because the Master of the High Court had appointed them without a recommendation by the Bank of Namibia (BoN), as is stipulated in the Banking Institutions Act of 1998.
Kamushinda further argues that Bruni and McLaren have been acting as final liquidators with the “improper cooperation” of the Master of the High Court.
He argues that the Master of the High Court has also wrongfully extended the powers of the provisional liquidators.
He adds that Bruni and McLaren never sought directions from the SME Bank's creditors and members or contributories at a general meeting. MetBank and World Eagle have also proposed the suspension of a commission of inquiry in South Africa into the SME Bank's missing millions, which was to start this month.
CATHERINE SASMAN
In their High Court application, Bruni and McLaren say they are entitled to demand the cost security in terms of the multiple-layered court cases against the Zimbabwean firms, because MetBank and World Eagle are foreign entities.
Judge Herman Oosthuizen yesterday postponed the matter until 16 November and ordered that the cost security be settled.
MetBank and World Eagle are both shareholders in the liquidated SME Bank.
Zimbabwean national Enock Kamushinda, a director of MetBank and World Eagle, had applied to the High Court for an interdict against Bruni and McLaren to stop them from exercising any of their liquidation powers.
Kamushinda wants to prevent the liquidators from continuing any investigation into the two entities at any commission of inquiry in Namibia or elsewhere.
He has asked the Master of the High Court in Namibia to review and set aside the appointment of Bruni and McLaren as the provisional liquidators of the SME Bank.
Background
Kamushinda says while a High Court order placed the SME Bank in liquidation, MetBank and World Eagle have appealed against this ruling in the Supreme Court. He says this appeal remains pending and will be heard today.
He argues that the appointment of Bruni and McLaren was “wholly flawed” because the Master of the High Court had appointed them without a recommendation by the Bank of Namibia (BoN), as is stipulated in the Banking Institutions Act of 1998.
Kamushinda further argues that Bruni and McLaren have been acting as final liquidators with the “improper cooperation” of the Master of the High Court.
He argues that the Master of the High Court has also wrongfully extended the powers of the provisional liquidators.
He adds that Bruni and McLaren never sought directions from the SME Bank's creditors and members or contributories at a general meeting. MetBank and World Eagle have also proposed the suspension of a commission of inquiry in South Africa into the SME Bank's missing millions, which was to start this month.
CATHERINE SASMAN
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