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JR Goddard, one of the companies that have been at the forefront of the construction industry since 1982, said last week it has since settled its debt with AfrAsia and has now effectively become a creditor in the failed bank.
AfrAsia had its banking licence withdrawn by the Reserve Bank of Zimbabwe (RBZ) on February 24, 2015.
JR Goddard was named as one of its major top five debtors, owing more than US$2 million by the end of last year.
However, the debt has since been paid. Initially, the company had borrowed more than US$7 million.
Reacting to an article published last week by The Sunday Mail Business mentioning that JR Goddard was one of the debtors in AfrAsia, the company claimed that the articles were malicious and defamatory.
The official figures captured in the article were for the period ending December 31, 2014.
It has turned out the obligations were actually settled at the beginning of the year.
After settling the loan, AfrAsia effectively owes JR Goddard US$272,36.
“Furthermore the allegations made by you are false and any investigation would have revealed that JRG did in fact have both an overdraft facility and a vehicle asset finance facility with AfrAsia, but both these facilities were settled in full by the end of January 2015,” noted JRG Contracting.
“We are not debtors. We are in fact creditors. We are also doing a lot of work and projects around the company. At one time, the peak unpaid voucher value was US$1 209 889,80,” noted Mr John Ross Goddard.
Investigations that had been carried out by this paper indicated that struggling local banks had huge loan exposures to related parties and local businessmen.
Some of the banks have collapsed due to the huge loan exposures.
JR Goddard Contracting has been at the forefront of the construction industry since 1982.
The company serves as the main bulk earthworks and civil works contractor on a number of mines across Zimbabwe.
Tinaye Agere
Online Reporter