Broke med­i­cal aid so­ci­ety of­fers graves to off­set debts

Chronicle (Zimbabwe) - - Front Page - Daniel Ne­mukuyu

GALAXY Med­i­cal Aid So­ci­ety, a com­pany in liq­ui­da­tion, has of­fered graves at some ceme­ter­ies to its cred­i­tors in its bat­tle to clear its debts with ser­vice providers.

The firm was placed un­der pro­vi­sional liq­ui­da­tion in De­cem­ber 2014 af­ter be­ing con­firmed to be in­sol­vent.

Galaxy was in­cor­po­rated in Zim­babwe in terms of the Med­i­cal Aid Ser­vices Act with the core busi­ness of pro­vid­ing med­i­cal aid ser­vices to the pub­lic.

Liq­uida­tor Dr Wes­ley Sibanda of Welsa In­ter­na­tional Char­tered Ac­coun­tants, re­ported to the Master of High Court that the com­pany was now in­sol­vent with to­tal li­a­bil­i­ties amount­ing to $1 578 478.

To­tal value of as­sets stood at $1 201 398 as at De­cem­ber 2013.

Net li­a­bil­i­ties were amounted to $377 080 at the time the com­pany was placed un­der pro­vi­sional liq­ui­da­tion.

In its bat­tle to pay off the debts, the liq­uida­tor told a pub­lic meet­ing at the Master of High Court’s of­fice that the only avail­able as­sets for sale were grave units at some ceme­ter­ies in Harare.

The cred­i­tors who are be­ing of­fered graves in­clude Life Sciences Lab­o­ra­to­ries (owed $4 603), The Health­bridge Den­tal Clinic ($1 757), Lancet Lab­o­ra­to­ries ($105), Clare­tian Mis­sion­ar­ies ($3 930,44) and Im­muno-Path Di­ag­nos­tic Lab­o­ra­tory ($2 093).

Ef­forts by Dr Sibanda to sell the grave units to fu­neral par­lours were prov­ing fruit­less and he was now seek­ing to hear from cred­i­tors if they can ac­cept the avail­able as­sets as a form of pay­ment.

Part of the min­utes of a meet­ing held mid last month reads:

“Dr Sibanda in­formed cred­i­tors present at the meet­ing that he was given grave units to sell by the trus­tees.

“He in­di­cated that he is fac­ing chal­lenges in sell­ing the graves. An agent was ap­pointed to sell the grave units but they are sell­ing at a slow pace.

“He fur­ther ad­vised the meet­ing that fu­neral par­lours are not will­ing to buy the graves in large quan­ti­ties,” read the min­utes.

In the next meet­ing to be held next week, the par­ties are ex­pected to dis­cuss the pos­si­bil­ity of of­fer­ing graves to the cred­i­tors as a form pay­ment.

Dr Sibanda of­fered to give grave units to all cred­i­tors owed in ex­cess of $600.

“He (Dr Sibanda) of­fered to pay cred­i­tors who are owed amounts above $600 in the form of graves.

“He then sug­gested that a spe­cial meet­ing be held in early Septem­ber for cred­i­tors to de­cide on whether they can ac­cept pay­ment in form of graves or oth­er­wise,” read the min­utes. The par­ties are ex­pected to meet on Septem­ber 14. Galaxy ar­gued that it got into liq­ui­da­tion af­ter its debtors who owed in ex­cess of $400 000 failed to pay it.

It then ended up fail­ing to pay its own cred­i­tors, re­sult­ing in the or­der for wind­ing up be­ing granted at the High Court two years ago.

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