CFI still working on reversing Langford sale

ZIMBABWE Stock Exchange listed entity CFI Holdings Limited, says it is still working on reversing the sale of one of its assets Langford Estates and has since instituted legal proceedings. Langford Estates was sold to Fidelity Life back in 2015 in exchange of CFI’s $18 million debt. From Langford’s 834 hectares, Fidelity Life expected to generate $200 million through the sale of more than 12 000 residential stands.

The deal was, however, questioned by the current CFI major shareholder Willoughby’s Investments Private Ltd, owned by Nicholas van Hoogstraten who has been pushing for a reversal of the Langford Estate deal alleging it was done fraudulently.

Van Hoogstraten argued that a 2015 extra-ordinary general meeting to approve the deal was misleading and dishonest in that shareholders were not told the independent property valuator of the land was prepared by FBC Bank, which was also “conflicted and related party” to NSSA and Fidelity.

In addition to that, a circular to shareholders did not state that Fidelity, who purchased the land was a related party as defined by the Zimbabwe Stock Exchange (ZSE).

The investment vehicle further argues that Zimre, the parent company for Fidelity and the National Social Security Authority, were not permitted to vote on the sale of the piece of land in question.

In a statement accompanying the company’s half-year ended March 31, 2018 results, acting chairperson Itai Pasi, said the new management had instituted legal proceedings to have the Langford deal reversed.

“Legal proceedings to reverse the illegal Langford Estates transaction have now commenced and updates will be provided in due course,” said Pasi.

She also said the Group’s property development business is “beset by historic fraudulent and corrupt arrangements entered into by the former retired CEO with other parties with whom we are now in litigation.”

One of the company’s former directors is implicated in the fraudulent registration of a $5 million mortgage bond over a Group Property in favour of TEFCO, a finance Company related to another former director.

“A report has been made to the relevant authorities and this mortgage is in the process of being cancelled,” Pasi said.

In other developments, CFI says at Saturday Retreat, popularly known as Ushewekunze, collections for stand purchases continued from residents during the period.

“Efforts are now centred on concluding town planning and surveys to facilitate processing of Certificates of Registered Titles (CRTs),” said CFI.

At Maitlands, Crest Breeders continued to collect instalments for stand purchases during the period.

“The Group progressed title surveys and completion of engineering drawings during the period.”