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Meikles this week only commented on the planned disposal of its South African hotel unit, Cape Grace, in its full year results to September 30 2011 without referring to the US$22 million.
It is alleged the then chairman, Mr John Moxon (now executive chairman), without the full consent of other board members executed the transactions.
The manner in which the funds were transferred raised a storm during the reign of Kingdom founder Mr Nigel Chanakira, as chief executive of the amalgamated Kingdom and Meikles group which formed the amalgamated Kingdom Meikles Africa Limited.
Meikles and Kingdom merged in 2008 in what became the biggest union of local corporates in Zimbabwean history but the marriage only lasted 18 months.
Meikles also seemed to admit the irregularities when some board members demanded in 2009 that the US$22 million be repatriated to Zimbabwe.
In 2009 Meikles issued statements indicating the prospects of recovery of US$17,5 million looked bleak. But the statement said US$4,5 million could still be salvaged.
In June this year, Meikles only indicated that US$11,7 million had been recovered, but did not explain how this would be treated in the accounts.
“The current thinking of certain elements of the Press appears to be based on the mistaken premise that previous publications were fact, which was not the case,” said Mr Moxon.
“An objective study of our annual report for the year ended March 31, 2011 together with our half-year results published yesterday answer all questions you raised.”
Although the finer details around the funds remain a secret, Herald Business is reliably informed that the funds have not been returned to Zimbabwe.
It is not clear whether shareholders had been informed of the decision to leave the funds outside the country and was formally approved as an investment.
It was claimed the funds were to be invested through South African firms Coolbay and Mentor, allegedly linked to Mr Moxon.
There was talk Meikles had shipped out the money to help the group expand into Africa and also run away from perceived risk stemming from economic and political developments in Zimbabwe at the time.
Meikles has so far not commented on the fate of the funds, but only indicated disposal of Cape Grace Hotel, disputed two years ago, was on course.
“The disposal of the Cape Grace Group is expected to be completed in the second half of our financial year,” Meikles commented in its half-year results.
The sale of the Cape Grace, ironically, to Mentor, had been threatened when Meikles sued the South African firm over the funds it sought to recover.
Meikles later withdrew legal proceedings against Mentor Holdings and indicated the South African company was still keen on the agreement entered in 2008.
What raises eyebrows is that the former chairman is now back in an executive capacity, which gives him the power to decide what is or is not to be done.
Online Reporter