Money lending firm reimburses investors

reimbursing hundreds of depositors who invested their money in the firm under the supervision of the central bank.
In a statement yesterday, the firm assured all its depositors that they will get their money.
The statement says the company had since introduced a system under which depositors will be repaid their capital investments in batches.
The company, however, indicated that they would not pay depositors interest accrued since they were out of business after losing their operating licence in June this year.
“McDowells International is refunding progressively all depositors in batches and currently we are about to complete the repayment of depositors listed on the second batch and expecting to compile a list for the third batch towards the end of the month. McDowells International cannot continue to credit clients’ accounts with interest since it is no longer trading.”
The firm lost its licence after being found guilty of violating the Banking Act by accepting deposits from the public.
There were reports, however, that the company was under pressure from some depositors pushing for the firm’s liquidation.
However, the company said most of the proponents of its liquidation were depositors who had already been paid their capital investments plus substantial interests.
Sources said some of the beneficiaries received up to US$225 000 after depositing only US$40 000.
Another investor received US$177 000 after investing only US$45 000.
A depositor who invested US$61 000 recently received US$159 000 after collecting money owed claiming interest.
“The liquidation of McDowells Internationals’ assets and those of its associated companies is not in the best interests of the depositors, shareholders and directors.
“The batch system currently being used will ensure that all depositors eventually get their deposits in due time.”
Masvingo-based depositors castigated beneficiaries calling for the company’s liquidation.
“We will not allow any efforts to push for the liquidation of McDowells International by some unscrupulous depositors who after milking the company now want it to be liquidated before some of us have been paid even a cent of our capital.”
McDowells International said it would negotiate with individual investors.
Payment to creditors is supervised by the RBZ.