Chanakira emerges with reputation damanged in KMAL demerger

HARARE, – The Merger between Kingdom Financial Holdings Limited (KFHL) and Meikles Africa Limited (MAL) is now over following a messy devorce that leaves Zanu PF businessmen clutching at straws.\r\n

Econet chairman, Mr Tawanda Nyambirai speaking on behalf of the requisitionist (Econet) condemned Nigel Chanakira for the use of Zanu PF tacktics of using specification as a mechanism of settling disputes between private individuals was immoral. Nigel Chanakira initiated the specification of John Moxon.

He pointed out that the Companies Act itself has provisions that allow for the investigation of a company where inappropriate conduct is alleged.

Mr Nyambirai added that Econet had taken a practical resolution to the dispute, hence the requisition he made.

He said if the demerger was approved "the company had fairly senior divisional managers" who would continue to report to the board while directors work to replace the board.
 

"If things had not gone the way they did today I could have lost my empire," said Chanakira in an exclusive interview with our reporter.

Moxon and Chanakira first clashed after the former tried to unilaterally sell off the group’s prestigious Cape Grace Hotel at the V&A Waterfront in Cape Town.

After Chanakira led resistance to the sale of the asset, Moxon declared war on him and called for an EGM to have the banker, Zanu PF linked industrialist Callisto Jokonya and Rugare Chidembo, removed from the KMAL board.

Chanakira then accused Moxon of externalising US$18,6 million and R21, 2 million and alerted police to possible fraudulent conduct, which led to Moxon’s specification.

But pressure from Zanu PF grew during the last Parliamentary and the disputed Presidential elections when MDC Command Centre operated from Meikels Hotel, and victims of Zanu PF violence who had fled from rural areas and camped at the MDC HQ where fed and treated from a private emergence clinic set up at the Meikels Hotel.

This irked Robert Mugabe and all hell broke loose.

Kingdom Financial Holdings Limited (KFHL will now need massive Capital to survive or let alone meet Reserve Bank Capital requirements, and as if that is not enough, it will be difficult for prospective business partners to align themselves with Nigel Chanakira following his spet with his former Chairman John Moxon.

In an affidavit filed with the CID Serious Fraud Squad, Chanakira said: “In the report there is an item marked ‘funds earmarked for future investments’ in respect of Coolbay (Proprietary) Ltd and Mentor Holdings (Proprietary) Ltd. The funds amount to US$18,6 million and are believed to be invested in South Africa.

“There are currently no ‘future investment’ projects approved by the board of KMAL. In addition, it is reflected in the same report that R21,2 million security deposit is held by Standard Bank South Africa against Cape Grace Hotel in South Africa. The said hotel is part of Kingdom Meikles Africa Ltd.”

In fact there is nothing illegal about Coolbay and Mentor holding US dollar assets and if this was illegal, it would be up to the South African authorities to adjudicate on the matter.

On Monday the Kingdom Meikles Africa Limited (KMAL) group held an Extraordinary General Meeting (EGM), where it was decided to demerge.

There was a 99 percent agreement to the demerger.

Kingdom Financial Holdings Limited (KFHL) will now relist on the Zimbabwe Stock Exchange (ZSE) as KFHL, while Meikles Africa Limited will become Meikles Limited.

Chanakira will retain his KFHL Chief Executive Officer title while new a CEO for Meikles is being sought.

Moxon is specified in Zimbabwe through trumped up extenalisation charges initiated by Nigel Chanakira, who is related to former Finance Minister Hebert Murewa.

Moxon has been charged with allegedly externalising money from Zimbabwe.

In a letter dated March 5, Chanakira wrote to Moxon: “As a way forward for KMAL, you (Moxon) suggested the following: Meikles family companies would like and would vote for the demerger of KMAL into Meikles Africa Ltd (MAL) and KFHL.”

Chanakira said he was agreeable to the proposal but suggested that Moxon first return to “engage the authorities” or meet with investigators in South Africa.

Chanakira said should the demerger occur, Moxon could lose more in the event of MAL getting entangled in government indigenisation schemes.

“A demerger of KFHL from KMAL albeit MAL would be extremely vulnerable to indigenisation laws, particularly Tanganda which you concurred would require a separate ownership structure,” Chanakira said in a blackmail attempt.

The documents to hand do not say, although Chanakira seems to believe, the farmland owned by Tanganda might be seized by the state. It is also not clear what ownership structure Moxon had proposed for the tea-maker to make it vulnerable to a takeover.

KFHL will regain control of its Kingdom Stockbrokers (Private) Limited, the Discount Company of Zimbabwe Limited, and Kingdom Bank Limited while Meikles will take charge of TM Supermarkets, hotels, Tanganda Tea Company and Cotton Printers (Private) Limited.

Kingdom relied heavily on Meikles cash-cows like TM Supermarkets, Tanganda Tea, Greatermans, HM Babours etc, and Chanakira will have have to work harder to fill up the gap if those business units take their banking operations elsewhere.

Chanakira on Monday bade farewell to shareholders whom he said had supported him throughout his short term in office.

The motion to demerge KMAL was issued by Strive Masiyiwa’s Econet Wireless Holdings Limited (Econet) which has a 10 percent stake in Kingdom Meikles Africa Limited (KMAL).

On the board Chanakira was left isolated together with a handful pockets of resistence from proxy Zanu PF sponsored business thugs when Strive Masiyiwa’s Econet deserted him and influenced the appointment of Muchadeyi Masunda as Chairman.

An emotional Chanakira thanked Econet especially Chairman, Tawanda Nyambirai, for the "solid support".