FRESH evidence of serious troubles rock ing one of Zimbabwe’s biggest coal miners — Makomo Resources — drifted into lime light this week, with reports showing the firm’s corporate rescue practitioners were insisting the business owes ZB Bank US$3,2 million.
But the lender said the debt had been settled by Makomo, which slipped into corporate rescue in 2021.
Grant Thornton, a firm of chartered accountants, was appointed to lead Makomo’s recovery efforts.
Conflicting narratives over the debt have raised questions about the accuracy of Makomo's financial records, and have given impetus to calls by a major creditor to push for Grant Thornton’s expulsion.
Documents seen by the Independent indicated that when Makomo slipped into corporate rescue, ZB Bank was among creditors, along with Barak Fund SPC Limited, which is owed about US$14 million.
In an Interview with the Independent, a ZB spokesperson insisted Makomo had repaid its debt.
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The Independent can report that the lender slapped Makomo with criminal charges over the debt two years ago, saying it was misrepresenting its financial obligations.
In a letter to the Master of High Court Titan Law, which is representing Barak in the matter, indicated that a creditors’ update dated July 19 prepared by Grant Thornton said the “claim by ZB Bank had increased by 28% from US$5,8 million to US$7,4 million without any explanation.”
Titan Law has queried amounts being tossed out regarding Makomo’s debt to ZB, and has been instructed by Barak to engage the courts.
“Next, the money paid to ZB Bank now stands at US$3,7 million, up from US$2,3 million in May 2024,” the letter said.
“The balance owed to ZB Bank now stands at US$3,784 million,” Titan Law’s letter said.
Grant Thornton, however, puts the debt at US$3,2 million.
“Important to note is that sometime in 2022, ZB Bank filed a criminal case of misrepresentation against Makomo Resources due to failure to disclose financial obligations in full at the time that ZB Bank established a facility of US$5 million to Makomo Resources in 2012.
“The accused persons are Makomo Resources represented by the corporate rescue practitioners and some directors/shareholders of Makomo Resources…”
“This is brought to the attention of the Master, as a reason for concern and further justification for the request to remove the corporate rescue practitioners, as they are clearly consorting with above mentioned shareholders and or directors, as co-accused persons in the criminal case, to prejudice all creditors, including our client.
“The corporate rescue practitioners now lack the independence required in the execution of their duties. They are abusing their office and defeating the course of justice, instead of protecting the interests of all creditors. We are, therefore, instructed to insist on the request that the Master removes the corporate rescuer from office for failure to comply with a lawful demand.”
Confidential correspondence, which was copied to the Zimbabwe Anti-Corruption Commission and the Council of Estate Administrators and Insolvency Practitioners, claimed that Barak was no longer receiving updates from the corporate rescue practitioners on time.
The Independent reported last month that Barak had demanded the dismissal of the corporate rescue practitioner for failure to undertake a forensic audit into Makomo's operations.
Barak and ZB Bank are also represented in the creditors committee.
“At this juncture, it is important to point out that we only received these update reports on September 9, 2024, yet they were circulated to all other creditors (on) 14 May and 19 July 2024. We are not aware if any meetings have been held since the last meeting on 19 February 2024, as we have not received any invitation to any meeting since then,” the letter further reads.
ZB Bank executive head of brand Emilia Mabika, however, told the Independent last week that the financial institution was no longer owed anything by Makomo.
“We are not owed anything by the customer.
"Due to customer confidentiality, we are unable to share details (about) our customers. We lent in US dollars and we were repaid in US dollars,” she said.
Advance Nare, an official at Grant Thornton, insisted that the ZB Bank 'debt' still stands.
“Outstanding balance, as at 20 September 2024, was US$3,2 million. This is secured creditors and the balance accrues interest. So, it is a moving balance,” he said.
However, Wintertons law firm representing Makomo, has written to the High Court, rejecting the request by Barak to have the judicial manager expelled.
Barak’s request, Wintertons averred in the correspondence: “was an intimidating tactic aimed at coercing the corporate rescue practitioner.”