Liquidator challenges her removal

Mashudu Netsianda Senior Court Reporter
CONFUSION surrounds the case of the Avon Lighting (Pvt) Ltd workers who have approached the courts to have the company’s liquidator relieved of her duties after it emerged both the workers and the liquidator are being represented by lawyers from Cheda and Partners.

The liquidator had filed opposing papers at the Bulawayo High Court challenging an application by workers who are seeking an order to remove her.

Thabani Lihle Siziba, who is the liquidator, is locked in a protracted legal battle with Avon Lighting (Pvt) Ltd workers who are seeking her ouster following a wage dispute and alleged mismanagement of assets.

In her founding affidavit, Siziba denied the allegations levelled against her arguing that she exercised her duties as liquidator in terms of the Companies Act.

Siziba who is being represented by Nqobizitha Ndlovu of Cheda and Partners queried why the same legal firm was also representing the liquidated company.

Sindiso Mazibisa, also from Cheda and Partners, is the workers’ lawyer. “The same firm (Cheda and Partners) represents the company under liquidation. It has already been paid its fees for the legal work, but surprisingly the law firm through its senior partner, Sindiso Mazibisa, is now seeking my removal from representing one of the directors,” she said.

Siziba said the move was unethical and unprofessional and a clear conflict of interest.

“I’m not a provisional liquidator but the liquidator of the company, which is under liquidation. I’ve exercised my duties in terms of the Companies Act and the allegations by the applicants are made out of ignorance and have no factual basis,” said Siziba.

The liquidator also disputed claims by workers that she failed to convene a creditors’ meeting in line with the Companies Act.

“I’ve convened the first creditors’ meeting in terms of the Companies Act and the meeting was held on July 30, 2014 at the Bulawayo High Court and the applicant was also present”.

Siziba said the section which the applicants allegedly used as a basis in their application, had nothing to do with the mandatory requirements which she is alleged to have failed to satisfy.

Siziba also dismissed claims by applicants that she was hostile to workers. She said the only assets sold were movables, which were sold in terms of a court order granted by the Bulawayo High Court.

“I did not accrue any unpaid wages. This is denied because the workers were contracted by the liquidator for stock taking and cleaning and were paid their dues,” she said.

Siziba said there was nothing to account for as all immovable property has not yet been sold to account and prepare the distribution plan. She said the proceeds from the auction were used to clear the liquidation cost.

“The applicants are clearly fighting their own battles. Before a person is appointed to take up office as liquidator, it is a requirement to lodge a bond of security and there is no way the master of High Court can issue a certificate without that bond and for applicant to say there is no bond is a mockery of the master of High Court’s office,” she said.

Avon Lighting (Pvt) Ltd workers’ committee and its chairperson, Jairos Mthonisi Moyo, are the applicants while Siziba and the High Court assistant master were cited as first and second respondents.

Moyo, who is representing the workers of the troubled lighting manufacturing firm, is accusing the liquidator of abdicating her duties and responsibilities by accruing new debts to the company in unpaid wages and mismanagement of assets.

The workers further claimed that Siziba acted in cahoots with her partner, Edward Sithole and looted company property and unlawfully took it to the auctioneers. They claimed the property which include a compressor, 25 brass lights and a money safe were sold without authority and the money was not accounted for.

The workers also want Siziba to be replaced by Bongani Ndlovu of Chelmsford Executors as liquidator.

Tabs Avon Lighting (Pvt) Ltd which was initially under judicial management, was subsequently liquidated in September last year following an application by its creditors.