Former MP in court over $9 000 debt

Source: Former MP in court over $9 000 debt | Newsday (News) BY CHARLES LAITON Former Zanu PF Mbire legislator, David Butau and his now-defunct Dande Capital Holdings, have been taken to the High Court by a Harare man, Euvencio Musundire, who is seeking an order to compel the ex-legislator to settle a $9 000 […]

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Source: Former MP in court over $9 000 debt | Newsday (News)

BY CHARLES LAITON

Former Zanu PF Mbire legislator, David Butau and his now-defunct Dande Capital Holdings, have been taken to the High Court by a Harare man, Euvencio Musundire, who is seeking an order to compel the ex-legislator to settle a $9 000 debt on behalf of his firm.

Musundire is seeking, in terms of section 318 of the Companies Act, an order to declare that Butau, who is also a former chairman of the Parliamentary Portfolio Committee on
Budget and Finance, is personally liable for the debt entered against Dande Capital Holdings on November 21, 2018.

“This is an application in terms of section 318 of the Companies Act for an order declaring the first respondent (Butau) to be personally liable for the judgment debt against the second respondent (Dande Capital Holdings) granted by the magistrates court on November 21, 2018,” Musundire said in his founding affidavit.

“On June 14, 2018, I was awarded the sum of $9 000, which was to be paid within 30 days … the said Dande Holdings did not settle the debt, prompting me to approach the Labour Court for purposes of confirming the award. The award was duly confirmed on September 26, 2018.”

Musundire said he has now approached the court for recourse after realising that Butau’s company was no longer operational and there is no other way for him to get his cash.

“I now wish to execute the order, but it has come to my attention that the said Dande Capital Holdings is no longer operating. It has since closed its offices, which used to be at 32 Cleveland Road, Milton Park in Harare and the company does not have any assets of value to me,” he said.

According to Musundire, when he reported the matter to the Labour ministry, Butau personally undertook to settle the debt and even received correspondence on behalf of his
firm and attended the labour proceedings on its behalf.

“The second respondent’s demise was clearly due to the reckless and gross negligence by the first respondent as the majority shareholder. This is because, despite having the funds, they did not pay me my dues and there were a lot of boardroom squabbles …,” he said, adding that he was now jobless and has not been paid his salary arrears.

The matter is pending.

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The post Former MP in court over $9 000 debt appeared first on Zimbabwe Situation.