By Martin Kadzere
THE Master of High Court and First National Building Society liquidator Mr Winseley Militala have clashed over the return of excess assets of the defunct financial institution to shareholders, largely emanating from disagreements over the liquidator’s fees.
Last October, the Master of High Court, Mr Charles Nyatanga, ordered Mr Militala to return the remaining FNBS assets to shareholders since all creditors had been paid.
In his submissions to the High Court, Mr Militala argued that issues pertaining to his liquidation fees were yet to be resolved, which meant he could not release the assets.
The liquidator’s fees amount to about US$500 000.
“It seems quite clear that the Master of High Court has adopted the position that the liquidator ought to return all the unrealised assets, notwithstanding the fact that the issue relating to remuneration remains unresolved,” said Mr Militala.
FNBS was placed under curatorship in 2003 after it faced liquidity challenges. The financial institution was then placed under provisional liquidation and eventually full liquidation, in 2006.
Mr Nyatanga insisted that all creditors be paid in full by February 23, 2009. Mr Militala should have released the excess assets.
He said Mr Militala’s continued hold on the remaining FNBS assets was meant to justify liquidation claims in foreign currency.
“One wonders what the liquidator was pursuing in              unnecessarily holding on to the unrealised assets when                    all creditors had been paid off as far back as 23 February 2009.
“The purpose for which the liquidator was appointed has been achieved and there is no justification in holding on to the assets for a period in excess on 14 months,” said Mr Nyatanga.
Last July Mr Nyatanga wrote to Mr Militala advising him that his request to be paid fees prior to the introduction of the multi-currency system could not be granted.
Mr Nyatanga said the liqudator embarked on repairing Gweru properties to justify his prolonged hold on the firm’s assets.
He said the liquidator also allowed storage charges to accumulate without seeking the shareholder’s consent or the Master’s authority.
Mr Militala insisted that while it was the role of the Master of the High Court to oversee the operations of liquidators, his decision to direct him to return FNBS’ assets was misplaced. “The basis for this application is simply that the Master of High Court has purported to exercise powers that he does not have in terms of statute or any other law,” submitted Mr Militala.
Businessmen Mr Samson Ruturi and Nicholas Musona owned a combined 89,74 percent stake in the financial institution.

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