adminAbel Zhakata Senior Reporter
HUNDREDS of Capital Base Savings and Credit Co-operative clients who are owed millions of dollars by the collapsed society were up for a shocker on Wednesday when the Deputy Master of the High Court in Bulawayo told them that they invested their money for nothing as they are only entitled to the principal deposits they gave the co-operative.
The court official, only identified as R. Antonio, was accompanied by the society’s provisional judicial manager, Mr Crispen Mwete, to approve and verify claims made by more than 4 000 clients who were left stranded when the co-operative failed to pay investments in 2012.
Much to the disapproval of those who attended a meeting held at Number 6, Simon Mazorodze Road in Mutare, the Deputy Master said all amounts paid to the clients as interest by the society would be deducted from the principal deposits they invested and they would get the balance.
He said 90 percent of the claims received from the clients had inflated figures, while some did not have documentary evidence to support them.
“My duty here is to accept and reject a claim. I am only interested in the principal amount that you deposited with the society. If you injected $500 it means you are only owed that much. The money that you got as interest will be calculated and it will be deducted from the principal amount and you will get the balance. What it means is that from the $500 you deposited and you got $100 interest on three occasions, we will deduct $300 and you are left with $200,” he said.
This did not go down well with the clients who said they were entitled to an interest.
Fumed one of the depositors: “You used our money and benefited from it and you are now saying I am not supposed to enjoy the interest I received. We did not give you our funds for free.”
The Deputy Master replied: “Mind you, that society was not a bank. I am just a court official and I am only trying to help you here. You are entitled to what you injected only, not the interest. I am not here because I enjoyed your money.
“I did not even benefit anything from that company. That company was not making any money to give you the interest you are claiming. What was happening is that they were taking money from someone and giving it to someone as interest.
“You need to satisfy me that you indeed invested something with the company and you do so by producing receipts.
“We are going through the whole process one by one until we finish everyone.”
He dodged when he was asked what would happen with some clients who received interest that was more than the principal deposits they made.
“I don’t know. What do you want us to do with them?” he said.
AFM Dangamvura East Church and a host of other organisations and individuals were among the first clients to have their claims verified.
Meanwhile, hundreds of State witnesses will testify in the ongoing landmark Capital Base fraud trial which is being followed closely by members of the public.
Charges against the co-operative’s chairperson, Solomy Kambunda (34), secretary Kudzai Madziyire (21) and vice-chairperson Karen Emilia Gwanzura (20) are that, with the intention to defraud people, they dubiously registered a society.
“To register the co-operative they submitted a list of names with forged members to the Ministry of Small and Medium Enterprises to legally register their society.
“To lure unsuspecting complainants and in pursuant of their criminal intent, during the period from early 2012 to January 2013, the accused persons advertised through the local Press misrepresenting that they were operating an investment company offering a lucrative 15 percent interest rate per month for capital invested,” alleges the State.
Unsuspecting complainants then approached the accused persons at their offices in Mutare where they were promised a 15 percent interest rate on money they deposited.
The State further alleges that upon receiving the money from the complainants the suspects converted it to their own use.
Using the ill-gotten money they purchased properties in Mutare including Number 2, Case Avenue, Murambi.
Complainants then approached the accused persons intending to redeem their investments, but the accused persons failed to account for the money invested. Investors suffered a total prejudice of $1 103 861.
The trial continues on October 30, 2014.
Online Reporter