Masimirembwa dragged to court over $11 million worth botched deal

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By Mary Taruvinga

FORMER Zanu PF legislator, Godwills Masimirembwa has been dragged to court for failing to comply with an agreement he entered into with the Trustees of the September Family Trust following a deal worth US$11,2 million.

The September Family Trust have approached the High Court seeking declaratory relief confirming that the Zanu PF top official who had sold them his company shares worth US11,2 million back in 2017 is in default.

It also seeking an order directing Masimirembwa to transfer shareholding in New Century Productions (Pvt) Ltd to the plaintiffs, equivalent to the sum of US$2 665 290 in terms of a clause of their sale agreement of shares.

According to court papers, in February 2017, Masimirembwa entered into a written agreement of sale of shares and sold his 24,4 percent shareholding in the New Century Productions Company valued at US$11 298 039.

In its declaration forming part of the summons, the trustees said initially the purchase price was divided into two that is a deposit of US$515 290 and a balance of US$10 737 039.

The court was told that Masimirembwa was also entitled to get 60 percent of proceeds of the of the sale of stand of Boronia farm, a sole asset of the Century Productions company.

“In terms of clause 3.3 of the sale of shares agreement, the deposit on the purchase price was further divided into a payment of US$100 000 and eight instalments of $50 000, all of which was payable in form of cash, motor vehicles at agreed values and immovable properties at agreed values.

“In terms of clause 3.4 of the sale of shares agreement, the deposit on the purchase price in the sum of US$10 737 039 it was to be paid to the first defendant (Masimirembwa) following the obtainment of a subdivision permit for Boronia Farm, the New Century Productions company’s sole asset and sale of stands on Boronia Farm with Masimirembwa being entitled to 60 percent of the proceeds of such sales until the balance outstanding on the purchase price is settled,” reads the court application.

Court papers show that the plaintiffs paid full deposit of US$515 290 through motor vehicles and immovable properties at an agreed value. 

However, the subdivision of Boronia farm was not obtained by the deadline of October 31,2017 and the trustees continued to pay monthly instalments of US$50 000.

According to the complainants, it was later obtained on August 28, 2018 and in conformity to sale of shares agreement, the trustees monthly obligation of paying $50 000 monthly stopped.

Masimirembwa in breach of the agreement of sale allegedly refused to comply with some of the clauses of the agreement particularly the clause 3.4. prompting the Trustees to seek court intervention.