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15th Floor, NSSA Building Cnr Sam Nujoma St/Julius Nyerere Way
HARARE 3 November 2009 Attention: Mr. R. Njanike Dear Gentlemen and Ladies, RE ; PROPOSED INTERFIN ACQUISITION OF MY BANK - CENTURY/CFX BANK LIMITED I refer to various media reports which suggest Interfin Holdings Limited plans to acquire
a controlling stake in My Bank Century/CFX Bank. I further refer to the letter from my
lawyers Gutu and Chikowero Attorneys at Law dated 2 November 2009. I trust my Lawyers
will effectively deal with this matter however I felt personally obliged to write to you
as I believe I personally know you and several members of your senior staff and Directors. Current CFX Bank lawyers are now peddling a totally morally corrupt and bankrupt argument that the shares were sold to pay off ENG Capital Holdings (ENG) Creditors and depositors. This can not go unchallenged. As you will recall when the RBZ victimized ENG the allegation was that ENG was bankrupt and it had no meaningful assets. It was further alleged that ENG only had expensive cars. The state media misled the public and investors into believing that ENG was a shelf Company involved in speculation and no meaningful investments had been made by ENG. It is unfortunate that a once reputable firm is now trying to peddle a falsehood created by the plotters and state media in an effort to justify and sanitize fraud committed against me and ENG.
The real facts clearly show the ENG was solid and owned real assets such as Century/CFX Bank. It is clear ENG held highly valuable assets beyond the cars that were being over hyped in state media to divert public attention whilst ENG real assets such as Century/CFX Bank were being looted and grabbed by senior politicians and high ranking Government officials.
If ENG as already proven owned Century/CFX Bank then how could ENG have been bankrupt and how could investing in buying a Bank be classified as speculation? Is it not clear that ENG was targeted due to greedy of certain individuals who wanted to loot and grab ENG’s Assets such as Century/CFX Bank? ENG was targeted in a grand fraud scheme to strip me and ENG of various assets including Century/CFX Bank. The allegations of speculation and other financial irregularities were created by the plotters using state media and other hijacked state Institutions to mask the fraud and theft which was being committed against me and ENG.
At this stage it is not important to look at ENG legal status. What is in question here is CFX Bank’s legal status and how CFX Bank snatched ENG shares.CFX Bank needs to show an Independently verified and audit trail showing how it took over Century Bank .Who bought the 309 million shares? Why were the shares sold through a special bargain? What favors were involved? Why is it that within the same week of the 309 million shares being sold it was then immediately announced that Century Bank would be merged with CFX Bank? Is this not a clear case of corruption and insider trading? Why didn’t the RBZ and ZSE stop and investigate such clear insider trading and corruption? 1 - It is widely reported that Finance Bank Zambia and their Swiss Financiers have
developed cold feet on their previous intention on investing in CFX/Century Bank after
receiving the details of my claim. This is important as it confirms the legitimacy and
seriousness of the Century/CFX Bank ownership dispute .First its confirms that Finance
Bank and their Swiss Financiers have done their own back ground investigations plus due
diligence and have satisfied themselves that my claim is real, justified, serious and
legitimate. Secondly they have correctly assessed that reputation risk of investing in a
looted asset is too grave in this modern day where money and transaction laundering are
serious International crimes. Thirdly they have been correctly been advised of the
drastic and dramatic consequences of investing in an asset where a crime has been
committed in dispossessing the legitimate owner of the asset. The question then is if
Finance Bank and their Swiss Financiers have seen that the risk is too high how can
Interfin which is way smaller in terms of resources can try to assume risk which the
Worlds second largest re-insurer is not prepared to take? 2 - You are receiving this letter as notification of the course of action spearheaded
on behalf of myself, my company ENG CAPITAL (PVT) LTD (ENG) and its directors in our effort to
recover at least 309 000,000 (309 million) and up to 900,000,000 (Nine hundred Million),
Century Bank shares fraudulently converted into CFX Bank shares. The fraud was masked as
a merger between Century Bank and CFX Bank but after the merger Century name was dropped
to cover the tracks of the fraud. The dispute was triggered by the special bargain sale
of 309,000,000 shares but the total shares owned by ENG were 900,000,000 the balance was
transferred in peace-meal fashion to avoid detection of the fraud and transaction
laundering that was being perpetrated. 3 - As you may-be aware I am currently living in exile in Toronto, Canada. I am a
founder, shareholder and Contributory of ENG Capital (PVT) LTD .I am sure you are fully
aware of the back ground to this letter as various subsidiaries of my Company ENG were a
counter parties to your Bank. It is well known that I was the first person arrested in
the 2003-2004 so-called anti graft campaign by Gideon Gono immediately after he took over
at the RBZ on fabricated charges and allegations. 4 - In the process of being dispossessed on my assets and ENG assets I was arrested,
abused, beaten, harassed, tortured, denied food, medicine, water and sleep all in an
effort to get me to confess to false charges whilst my assets were being stripped from
me. In addition I was forced to sleep with dead bodies and share blankets with people
suffering from infectious diseases as a way to weaken my resolve and coerce me to
surrender my fight to protect my Company and my assets. 5 - Several other Banking Executives were later haunted, arrested, intimidated and
others forced into exile. Their Banks and other Financial Institutions were closed,
expropriated or taken over by Government or senior politicians. The affected individuals
include Messrs Nicholas Vingirai - Intermarket Financial Holdings, William Nyemba - Trust
Banking Corporation, Jeff Muzwimbi - Royal Bank and Dr Mthuli Ncube - Barbican Bank and
myself Gilbert Muponda of ENG Capital and Century Bank now CFX Bank. Mr Raymond Njanike I
believe you should be more aware of some of the exact facts relating to these case since
you were at the time a Managing Director of Trust Discount House which was part of the
affect Institutions. 6 - It is now a well known fact that the allegations raised against all the above
business people were a smokescreen to divert public attention and also strip these
individuals of the Businesses and assets. These business people have maintained their
innocence from day one despite being demonized , scandalized and criminalized. All of
them are at various stages of reclaiming their Banks and assets which were taken under a
dark cloud under the guise of anti-graft hyped campaign. This is relevant back ground to
give a general understanding of the circumstances giving rise to this claim and dispute. 7 - These allegations were a smokescreen created to allow the grabbing of my assets and
those owned by my Company ENG Capital (PVT) LTD. In the process of being dispossessed on
my assets and ENG assets I was arrested, abused, beaten, harassed, tortured, denied food,
medicine, water and sleep all in an effort to get me to confess to false charges whilst
my assets were being stripped from me. In addition I was forced to sleep with dead bodies
and share blankets with people suffering from infectious diseases as a way to weaken my
resolve and coerce me to surrender my fight to protect my Company and my assets. It is
only natural justice that assets seized under such conditions be returned or compensation
be paid and those responsible held accountable 8 - CFX BANK/Century Bank was unlawfully and illegally seized from my Company by the
Government of Zimbabwe using various means and schemes. The proposed investment by
Interfin Holdings Limited represents a blatantly transaction and money laundering act
meant to hide the tracks of the preceding illegal seizure of my asset (CFX BANK) by the
Zimbabwe Government using various illegal and cruel means. For this reason it is not a
wise investment by Interfin Holdings Limited as legal action is pending and in process to
reclaim the stolen assets which are now being sanitized through various disposals and
investments?. 9 - Interfin Holdings Limited are trying to buy an Asset (CFX Bank) which was looted
and expropriated from me and my Company. This is not right and must not be allowed to
happen. Interfin Holdings Limited is exposing itself to serious reputation risk as this
ownership wrangle is definitely going to drag its name and brand into asset looting and
expropriation that is currently going on in Zimbabwe. In addition the Directors and
Senior Management of Interfin are exposing themselves to serious personal risk which may
affect their ability to do business and legitimate transactions outside Zimbabwe. In
addition this risk may become contagion and affect every other entity or individual
associated with Interfin Holdings Limited. 10 - Through notice of this letter should Interfin Holdings Limited choose to continue
to Finance an illegal and money laundering transaction it will become party to the
pending litigation and be exposed to the attendant reputation risk. 11 - This is an on going effort to hold responsible those who looted assets and are now
trying launder their loot. All efforts are being made to pursue available legal channels
in multi-jurisdictions to ensure that the individuals and entities responsible are held
accountable for their actions. Please be guided accordingly as Interfin can easily be enjoined in the proceedings. 12 - At all times relevant to this document ENG was a corporation organized under the
laws of the Republic of Zimbabwe with its head office in Harare and be advised that I was
unlawfully separated from my business by the RBZ with the connivance of the CFX
directors. 13 - The shares in question have changed the ownership at the start of my claim ?with a
view to evading the consequences of the litigation?. 14 - Various transactions and Company re-organization schemes with the ultimate aim of
sanitizing asset looting and illegal expropriation of our Assets. 15 - It is important that your Organization avoids being a conduit to a money and asset
laundering scheme. 16 - The current and preceding Directors of CFX with a view to concealing the true
owners of shares in Century Bank later converted to CFX Bank and entered into a secret
arrangement with the Governor of the RBZ, whereby the latter acquired the shares,
obtained a specification order for all ENG directors thereon, brought the Century Bank
shares to sale under execution and purchased the shares for a new company CFX Bank,
organized later in which the RBZ Governor has a large interest through nominees. 17 - The allotment of shares to the GOZ in the new CFX Bank is proportionate to those
held by ENG in Century Bank and the CFX directors agreed with the RBZ Governor not reveal
this understanding to the other shareholders. 18 - ENG, Shareholders and Contributories and its directors have established a prima
facie case against Century/CFX Limited and intend to appoint a forensic auditor, whose
mandate shall be to determine the true nature of CFX?s shares. 19 - Century bank was a public company listed on the ZSE. This means the records of the
various ownership changes are available and Interfin Holdings Limited need to do a proper
Shareholder Audit Trail to verify the ENG ownership claim. In particular Interfin
Holdings Limited should ask for the Century/CFX Bank audited share register as at 31
December 2003 and 12 May 2004.This will confirm that indeed Century/CFX Bank was owned
and controlled by me and ENG Capital. 20 - The directors of Century/CFX are co-conspirators in an elaborate scheme to defraud
ENG. They have falsely and fraudulently with others known and unknown, unlawfully,
willfully, and knowingly did combine, conspire, confederate, and agree together and with
each other to commit offenses against ENG to commit fraud in connection with the purchase
and sale of securities issued. 21 - Furthermore the directors of Century/CFX provided false and misleading information
to CFX?s auditors and concealed from them their falsification of CFX?s books and records,
and manipulation of data recorded in CFX?s general ledger and subsidiary ledgers. making
and causing CFX to make untrue statements of material facts and omitting to state
material facts necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading 22 - For the foregoing reasons, your Proposed investment in CFX /Century Bank Zimbabwe,
the bank ownership transfer is subject to an on going dispute .This transaction will
expose your Bank to high reputation risk as the dispute may entangle your Organization as
the Rightful owners of CFX /Century Bank seek to reclaim their stolen shares and Bank. At
this stage it is also important to note that any dispute will entangle all Directors and
Major shareholders in their personal capacity. 23 - I have proven that Century/CFX Bank was owned by me and ENG Capital. I have
further proven that Century/CFX Bank was unlawfully, illegally and irregularly taken from
me through fraud, false imprisonment, torture, harassment. It therefore follows that any
transaction undertaken to sanitize such illegal actions in grabbing someone's assets
amounts to transactions laundering. And money Laundering. I am sure your organization
does not wish to be party to such serious international crime. As Bankers I am sure you
are aware of the serious consequences of trying to launder transactions and sanitize
illegal transactions. The risk involved is not worth it as Finance Bank Zambia and their
Swiss Partners have concluded. 24 - As a detailed background in April 2003 ENG Capital Investments acquired Century
Discount Holdings from Century Financial Holdings ( A ZSE listed Financial Holdings
Firm).The purchase price was Z$1.5 billion then equivalent to US$ 3 million. The purchase
price was paid in full. ENG then applied to the Registrar of Banks and Financial
Institutions for the change of controlling shareholder approval which approvals were
denied. 25 - After several attempts to get the underlying reasons for the denial I was informed
that ? the Authorities were not comfortable with ENG political inclination which they
said remained unclear in addition issue of the ENG Directors age was raised. We then
tried to find out if Century Financial Holdings was in a position to refund ENG for the
purchase price and to reverse the Century Discount House purchase. Century Holdings was
not in a position to refund ENG. 26 - The only recourse was that ENG had to acquire Century Financial Holdings to
mitigate any potential loss of outlay on the Century Discount house acquisition. As such
ENG and its associated Companies acquired a total of 52% of Century Financial Holdings
making Century an ENG subsidiary. The audited shareholder register of Century/CFX Bank as
at 31 December 2003 and 12 May 2004 will confirm this material fact. 27 - After my arrest on fabricated charges ENG was placed into Provisional Liquidation
as a way to secure the creditors. The creditors agreed to take shares held by ENG IN lieu
of payment. As such the contributories, directors and lawyers and creditors agreed the
shares should not be sold whilst a fair valuation was being negotiated. However we were
shocked to read in the papers that a parcel of 309,000,000 Century shares belonging to
ENG had been sold through a pre-fixed special bargain transaction on or about 12 May
2004. The beneficiary to this transaction has remained a mystery even though we have
reliable information as to the probable ultimate beneficiaries. 28 - Within a week of this sale of shares it was announced that Century Bank will now
be merged with CFX Bank and the new Bank will be called CFX Bank. It is clear the merger
was a laundering transaction meant to hide and sanitize the illegal and irregular
transfer of the shares owned by ENG. The name Century was immediately removed and the new
entity rebranded CFX Bank despite the fact that Century Bank provided a majority of the
assets and infrastructure of the new Bank. 29 - The so-called merger was only arranged to hide the true nature of the illegality
of the transfer of ENG shares in Century. It is clear that without the illegal and
irregular share transfer the merger would not have happened and would not have made any
sense ,it was therefore just done to cover the tracks of the asset grab that had taken
place. Through our Lawyers Ziweni and Company we sought the identity of the buyer and also to
clarify that the share sell was null and void as it had all whole marks of corruption,
insider dealing and was being challenged by the beneficial owners of the shares. In
addition the shares had been sold through a special bargain and not an open market
transparent transaction. We also asked the Zimbabwe Stock Exchange to investigate and
stop the share transfer. However due to the general prevailing atmosphere and fear to
challenge authorities no one was willing to assist us to stop or challenge this
illegal and irregular transfer of the shares to an unidentified buyer believed to be a
group of senior political figures. In this instance the Zimbabwe Stock Exchange did not
act properly and prudently in defending and safeguarding shareholder interests. Given
that we had raised a legitimate concern the share transfer should not have been
permitted.
This matter is well documented and for easy of reference please refer to the following websites which have been specifically created to document this ownership dispute
(a) – www.cfxbank.com
(b) – www.cfxbank.blogspot.com
Given the above it is clear Interfin should not interpose itself in an ongoing
ownership dispute which has been in the courts for the last 5 years. Should it be necessary measures are already underway to create another website to deal with Interfin and document .
For the sake of transparency I am copying this letter to the following ; Minister of Finance Zimbabwe – Hon T.L Biti Reserve Bank of Zimbabwe Governor - Dr Gono Zimbabwe Stock Exchange CEO - Mr Emmanuel Munyukwi CFX BANK Board of Directors Zimbabwe Parliament -Budget, Finance and Investment Promotion Members Below Hon Zhanda , Hon. Beremauro, Hon. Bhebhe A, Hon. Chinyadza, Hon. Cross, Hon. Khumalo ,M
Hon. Madzimure, Hon. Mashakada, Hon. Matshalaga, Hon. Mudiwa, Hon. Muguti, Hon.
Mukanduri, Hon. Ndava, Hon. Nyaude. Committee Clerk- Mr Ratsakatika My full contact details are below should you need any clarification. Yours Faithfully,
Gilbert Muponda
Toronto ,Canada 1-416-841-5542 1-647-994-5542 Email
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