adminNoble Ncube, Business Reporter
THE Directors Protection Council of Zimbabwe (DPCZ) says there is need for an independent property evaluator who will give fair value of goods for companies set to be auctioned instead of leaving the whole process to be handled by a single officer.
The call by DPCZ comes at a time when Acting President Phelekezela Mphoko last week castigated the way business property auctions were being conducted equating them to actions that are frustrating economic growth.
DPCZ chief executive officer Mr Reggie Sibanda said having only one judicial officer running a company was exposing companies to cases of corruption and unregulated stripping of company assets.
“We have been receiving calls from different businesses and individuals saying they are not happy about how the auctioning of properties is being conducted. The major concern being the processes of evaluation and auctioning are done by one officer,” he said.
“Therefore we want an independent evaluator who will give a fair value on the property that is being auctioned other than letting one officer handle everything.”
Mr Sibanda said the most abused process was the one involving vehicles. He said there was a need to have a consultant who has knowledge of vehicles. Mr Sibanda said it was clear daylight robbery when an attached property was being sold at prices lower than its actual value.
“Property is not well advertised. Confirmation of houses sold on public auction is now order of the day because the owners of the property would not have been notified. Some information is concealed so that corruption takes place.
“There are dubious lawyers who do not follow court procedures and rush to a judge so that they can sell people’s properties even if the two parties involved are eager to resolve the matter in a way that will satisfy both of them,” said Mr Sibanda.
He said there was an urgent need to critically look at the work of the Messenger of Court and Deputy Sheriff otherwise businesses will continue to suffer.
He said existing laws around business property auctioning were old and not in sync with the prevailing economic conditions.
A number of companies have lost property to auctions after being dragged to courts by creditors. This in some cases has resulted in the closure of the companies.
Online Reporter