The legal battle between shareholders of Access Finance Group, a Zimbabwean remittance and financial services firm, is escalating with the main shareholders now disputing whether to resolve their differences in court or through arbitration.
According to court documents, Access Finance wants arbitration to resolve the lingering issues, particularly the title deeds to properties involved in the deal. However, the company is also dragging its feet on transferring the properties or paying former shareholder and managing director Senziwani Sikhosana in full.
Sikhosana has taken Access Finance and its former chief executive Singathini Raymond Chigogwana to court over the title deeds of three townhouses worth US$320,000. The two former business partners are also fighting over the Mountbatten Complex, a real estate development in Harare with 37 townhouse units valued at least US$3.9 million.
The transfer of the properties has been delayed because Access Finance has not yet paid Value Added Tax (VAT) to the Zimbabwe Revenue Authority (Zimra). The tax liability is estimated to be between US$585,000 and US$600,000.
Chigogwana is seeking to have the matter referred to arbitration, arguing that this is the agreed-upon dispute resolution mechanism in the shareholders’ agreement. However, Sikhosana is opposed to arbitration, arguing that Access Finance is simply trying to stall the process.
