Makamba declares Telecel corporate rescue void

Telecel board chairman Dr James Makamba said the entity is operating normally and does not recognise a government gazette placing it under corporate rescue.

https://www.zimbabwenow.co.zw/articles/4355/hofisi-appointed-telecel-corporate-rescue-manager

“It is noted by the board with extreme concern that a Gazetted Notice was published on Friday 12 May 2023 to the effect that corporate rescue proceedings had validly commenced. This is not accurate or true” said Dr Makamba in a statement.

“Telecel Zimbabwe (Pvt) Ltd wish to assure the public, stakeholders, creditors, and all interested Telecel persons that it continues to provide its services as normal,” he said.

Dr Makamba said the Government Gazette published on May 12, 2023 following the Communication and Allied Service Workers Union of Zimbabwe application lodged in October last year is not legal because the case determination date is yet to be set.

“An invalid legal process by the Communication and Allied Workers Union of Zimbabwe was lodged in the High Court of Zimbabwe under HC 306/22 in October 2022 through Gumbo & Associates. That application was opposed. The outcome of those proceedings awaits a set down date to determine the validity and the merits,” Dr Makamba said.

Dr Makamba said the “belated notice tries to sanitise procedural defects raised in opposition by our lawyers Honey and Blanckenberg”.

In his application AWUZ secretary-general Mr David Mhambare said Telecel was insolvent and faced liquidation if no rescue action was immediately taken.

Dr Makamba said in his statement there is no valid basis to assert that Telecel is unable to discharge payments of any valid debt or is incapable of discharging its service provisions to the public, beyond the normal constraints exerted by the current tough operating environment

He said the board is currentlyis finalising advanced plans to inject fresh capital into the organisation as it enters a new “exciting” phase of sustainable growth.

Telecel is 60 % owned by SOE Telecel International, and 40% is owned by Empowerment Corporation.

Dr Makamba, Dr Jane Mutasa, Dr Phillip Chiyangwa, Zimbabwe Farmers Union, National Miners Association, Indigenous Business Women Organisation and Magamba eChimurenga, Mr Leo Mugabe and Mr Patrick Zhuwao, nephews of the late former President of Zimbabwe, Robert Mugabe are among those believed to be shareholders in Empowerment Corporation.