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TWO former Caps United directors, Lewis Uriri and Nhamo Tutisani, yesterday filed an application at the High Court seeking provisional liquidation of the Premiership club arguing that it had failed to pay its debts and it was being run “like a rural tuckshop”.
Uriri, a former board member responsible for corporate and secretarial affairs, and Tutisani, a board member responsible for commercial affairs, who are owed $25,695 and $118,000 respectively, argued that Caps had failed to settle its debts and that it must be placed under liquidation.
The two injected funds into the club during their tenure as directors and the club owes them a combined $143,000.
Caps United director Farai Jere, who is owed close to $2 million and owns a 45 percent stake in the club, has not taken action against the club.
The club and the company which owns it have acknowledged owing Jere $1,4 million.
Uriri and Tutisani accuse Caps president, Twine Phiri, of alleged mismanagement to an extent of reducing the popular club to a rural tuck shop business. In an application filed yesterday by the duo’s lawyer, Blessing Diza, Caps United was described as insolvent.
Part of Tutisani’s affidavit attached to the application reads:
“The respondent (Caps United) has committed an act of insolvency in terms of Section 205 and 206 (e) of the Companies Act.
“I am advised that in terms of these provisions, a company is deemed to be unable to pay its debts and is, therefore, insolvent and liable for liquidation, if a creditor is owed $100 and the company has, despite demand, not made payment within three weeks.”
Laying the basis for the liquidation of the company, the duo told the court that Caps United was now critically undercapitalised and had failed to trade itself of debt.
The duo blamed Phiri for running the club single-handedly and making decisions detrimental to the club.
Online Reporter