Israelis billionaire fights for Gemcanton come back

THE GEMCANTON mine drama has taken a new twist with Kitwe High Court Judge Timothy Katanekwa appointing a Receiver for the company owned by Israeli billionaire Lev Leviev but his lawyers said they will challenge the Order.

Judge Katanekwa ordered the appointment of an “Official Receiver” barely a day after he stayed the appointment

of the liquidator for Frango Finance Limited, a company owned by Leviev which owns 50 percent of the Gemcanton mine in Lufwanyama.

The company recently changed its name from Gemcanton to Grizzly Mine, in circumstances which could not be explained.

The order of Receiver was, once again, made ex-parte or without hearing the other side of the Israelis.

“It is hereby ordered that the official

receiver shall be and is the provisional liquidator of the Respondent company in respect of all the assets, properties and business of the Respondent herein with powers of the provisional liquidator as enshrined in the Corporate Insolvency Act,” the Order read, which was granted barely a day after Staying liquidation by the same Judge.

When contacted for a comment, lawyer Dickson Jere who is representing the interest of the Lev Leviev Group in Zambia confirmed having been served the Order on Monday by Lewis Nathan Advocates but indicated he has instructions to challenge the Order.

“My clients have given instructions to challenge the Order of appointment of an official Receiver. We are in the process of filing the documentation,” Jere said without giving details of the type of challenge he will file.

Last week, Kitwe High Court halted the provisional liquidation of Frango Finance Limited following an application by the shareholders Ekavi Limited, a company registered in BVI.

The provisional liquidation and receivership is part of the ongoing shareholder disputes at the Gemcanton emerald mine in Lufwanyama where mining magnate Abdoulaye Ndiaye or Gunase is fighting with his Israeli partner.

Judge Timothy Katenekwa two weeks ago granted the Order of provisional liquidation of

Frango Finance Limited and appointed Joseph Chilinda as provisional liquidator ex-parte or without hearing the other side.

However, the same judge stayed the appointment of the liquidator on Wednesday following an application by shareholders of Frango Finance Limited who applied to be joined to the proceedings as their company is not insolvent at all.

According to the affidavits filed into court, the shareholders of Frango Finance Limited stated that the company is registered in BVI and is solvent and never had problems in paying debts.

The company also stated that the debt in dispute is before the court of law and wondered how such an action can be commenced in Kitwe when the matter is before the Court of Appeal.

Judge Katenekwa granted the Order of stay of the liquidation pending hearing both parties.

Frango is a company owned by Israeli billionaire Lev Leviev who has been embroiled in a shareholding dispute with Gunase of Senegalese origins over the running of Gemcanton mine in Lufwanyama area. The courts in London have since ordered that Ndiaye pays his Israeli partner USD50 million following his failure to deliver the emeralds which was paid for in full by the Israelis. The court in UK, Switzerland and Canada have also issued seizure orders for Gunase assets as part of the payments of the debt.

My clients have given instructions to challenge the Order of appointment of an official Receiver. We are in the process of filing the documentation.”