Jonas and Esther Zvobgo, represented by Munyaradzi Bwanya,
approached the court seeking a forensic audit into the estate within three
months saying they were losing out as minority shareholders.
They argued that Eddison, as the managing director of
companies under the estate, is failing to pay taxes and exposing company assets
to attachment by creditors.
In its application, the duo cited Eddison, Rungano, Zvobgo
Holdings Private Limited, Kerina Makaita Zvobgo and Tsungirirayi Zvobgo as the
first to fifth respondents, respectively.
The cited respondents are also shareholders in Zvobgo
Holdings.
Eddison is the managing director of the Zvobgo empire that
consists of several companies that include Perce (Private) Limited T/A
Flamboyant Hotel, Nyuni Farm (Private) Limited and Chevron Hotel, among others.
The applicants said Rungano and Eddison had jointly
conducted themselves in a manner that was grossly prejudicial to other
beneficiaries’ interests.
They argued that Rungano and Eddison had repeatedly used
the majority vote to conceal their refusal to account for the company assets or
financial health of the estate.
“The obvious and constantly improving opulence of 1 and 2
respondents, including using company assets to support Eddison’s personal
political ambitions as compared to the abject poverty of all other
shareholders,” they submitted.
They further accused Rungano and Eddison of sourcing loans
from various financial institutions without their knowledge, exposing other
shareholders and risking forfeiture of
company assets.
“Eddison and Rungano have authorised or condoned litigation
in the name of the company/companies without approvals or knowledge of the
other shareholders. When confronted to account for the decisions, Eddison
deployed the use of violence against one of the beneficiaries of the estate.”
In his affidavit, Jonas submitted that sometime in 2022 he
learnt that Eddison had approached CBZ Bank to borrow US$2 million without a
board resolution.
“Myself, Esther and
respondent 4 and 5 were concerned by this development given the
background that Eddison has previously applied for and secured other bank loans
without approvals...I then wrote a letter to the bank...It became clear at that
meeting that the shareholders who were generally opposed to the loan
application challenged Eddison,” Jonas submitted.
The applicants also argued that there is a conflation of
roles and corporate governance issues after Eddison assumed duty as a
shareholder, director, managing director and secretary of companies under the
estate.
“Eddison admits in his sworn affidavit filed in HC2443/21
to third parties that he is conflicted in these roles yet he persists without
resolving the same. When he has been called upon to answer questions pertaining
to day-to-day running of the company such as accounting for company assets and
basic decisionslike his accommodation, he defaults (sic) to his majority
shareholding to refuse to answer questions,” they submitted.
“In addition to the housing allowance he is receiving to
rent accommodation of his choice, despite a request for him to desist from the
abuse of the hotel, he insists on it. To place further context, his occupation
of the presidential suite costs the shareholders over US$36 000 per year in
addition to the US$30 000 he is already receiving for housing.” Newsday
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