Gemcanton in liquidation crisis

The Zambian High Court has now placed Frango Finance Ltd, which owns half of Gemcanton Investments Holdings, in compulsory liquidation after receiving a petition on February 18, 2019.

THE shareholding battle at Gemcanton Investment Holdings Limited has taken a new twist as Frango Finance Limited, the shareholder that had reported company secretary Carol Mpenduka Sampa to the Drug Enforcement Commission (DEC) for forgery, now faces liquidation.

The lawyers, however, intend to challenge the liquidation.

On January 25, 2019, Frango Finance Limited, lodged a complaint at the commission citing irregularities in the manner decisions were

to the exclusion of the other shareholder, culminating into the alleged forgery of documents by Ms. Sampa.

“On December 31, 2018, we noticed that Ms. Sampa went ahead and filed documents in the company registry and removed our shares as well as the directors appointed from our side. The changes were made at both Gemcanton and Grizzly Mining Limited.

“The resolutions filed at the Patents and Companies Registration Agency (PACRA) were all forged as no meeting ever took place to make any changes.

“We therefore write to lodge an official complaint that Ms. Sampa and whoever worked with her to forge the documents be investigated, arrested, and prosecuted. This probe should be extended to the officials at PACRA as they were aware of the disputes yet went ahead and made changes to the company registry,” reads the letter in part.

And DEC public relations officer Theresa Katongo yesterday confirmed receipt of the complaint letter from Frango Finance Limited and said the commission was still studying the matter.

However, the Zambian High Court has now placed Frango Finance Ltd, which owns half of Gemcanton Investments Holdings, in compulsory liquidation after receiving a petition on February 18, 2019.

A notice of compulsory winding up of Frango Finance Limited has subsequently been placed in the press in which debtors, creditors, and all interested parties have been advised to deal with the provisional liquidator.

Meanwhile, company lawyer, Dickson Jere is quoted by Bloomberg as having vowed to fight the liquidation saying it was issued without the knowledge and consent of the owners.

Israeli diamond billionaire Lev Leviev and his partner, Abdoulaye Ndiaye from Senegal, have been embroiled in legal battles since 2015.