adminflooded the High Court prompting the registry to group the matters for convenience.
The High Court registry is in the process of compiling all the related claims so that they will be dealt with at once.
Zaoga’s provincial and district churches countrywide deposited various amounts of cash to McDowells which was in the business of money lending.
Tragedy struck in June 2012 when Reserve Bank of Zimbabwe cancelled the financial institution’s money lending licence and many investors demanded their money back.
Among the most affected was Zaoga and its several individual members.
Zaoga instructed Debwe and Partners law firm to file the application while Kanokanga and Partners are defending the matter.
The church is also claiming a further R203 291 from McDowells.
Zaoga cited McDowells, Member Chipamba and Hove Mukwashi as defendants in the lawsuit.
In terms of the agreements signed between the church’s branches and McDowells between 2010 and 2012, the interested investors would deposit cash with the company and get it with interest. The funds would be deposited either for short term or long term investment.
After the expiration of the agreed period, it was an express term of the agreements that McDowells would pay back to the church’s provinces, districts and ministries with interest ranging from five percent and 15 percent per month.
Prior to the conclusion of the agreements, the church claims, McDowells directors and agents would orally undertake to pay back the money with interests on the agreed dates.
The central bank cancelled the company’s money lending licence.
Several investors thronged the offices claiming their money back.
Some were refunded their monies after some advertisements were flighted in the press.
A list of investors were published in the local press and they were invited to collect their monies while others, including the church, did not get their money back.
The church claims it demanded its money back but McDowells refused or failed to honour the debt prompting them to approach the High Court for redress. The matters are still at pre-trial stage and they are likely to be combined for convenience.
In the court record, lawyers for McDowells – Kanokanga and Partners – have only filed notice of appearance to defend the matter against Zaoga.
Online Reporter