Home » Judicial » Caps Saga Spills Into High Court

TWO former CAPS United directors, Lewis Uriri and Nhamo Tutisani, yesterday filed an application at the High Court seeking provisional liquidation of the Premiership club arguing that it had failed to pay its debts and it was being run “like a rural tuckshop”.

Uriri, a former board member responsible for corporate and secretarial affairs, and Tutisani, a board member responsible for commercial affairs, who are owed $25 695 and $118 000 respectively, argued that CAPS United had failed to settle its debts and that it must be placed under liquidation.

The two injected funds into the club during their tenure as directors and the club owes them a combined $143 000.

CAPS United director, Farai Jere who is owed close to $2 million and owns a 45 percent stake in the club, has not taken action against the club.

The club and the company which owns it have acknowledged owing Jere $1,4 million.

Uriri and Tutisani accuse CAPS United president, Twine Phiri, of alleged mismanagement to an extent of reducing the popular club to a rural tuck shop business.

In an application filed yesterday by the duo’s lawyer, Blessing Diza of Wilmot and Bennett law firm, CAPS United was described as insolvent.

Part of Tutisani’s affidavit attached to the application reads:

“The respondent (Caps United) has committed an act of insolvency in terms of Section 205 and 206 (e) of the Companies Act.

“I am aised that in terms of these provisions, a company is deemed to be unable to pay its debts and is, therefore, insolvent and liable for liquidation, if a creditor is owed $100 and the company has, despite demand, not made payment within three weeks.”

Laying the basis for the liquidation of the company, the duo told the court that CAPS United was now critically undercapitalised and had failed to trade itself of debt.

The duo blamed Phiri for running the club single-handedly and making decisions detrimental to the club.

“A Uriri resigned from the company on July 31 2014, seven months into his tenure of office.

“There has been only one board meeting since then, with Mr Phiri running the show with no reference to the board.

“Consequently, the board could not be blamed as the company is run, with respect, like a rural tuck shop . . .

“There is management failure. It (company) is unable to pay its debts with no hope of a resurrection plan . . . ”

They stated in the application that CAPS United does not have property sufficient to meet the debt and that it was failing to pay its staff and players.

Uriri and Mr Tutisani want the court to order the winding up of CAPS United and to appoint Bhudhama Chikamhi as the provisional liquidator.

The pair based their application on Section 205 (a) of the Companies Act that reads: “A company shall be deemed to be unable to pay its debts-

a) If a creditor, by cession or otherwise, to whom the company is indebted in a sum exceeding one hundred United States dollars then due, has served on the company a demand requiring it to pay the sum so due by leaving the demand at its registered office and if the company has for three weeks thereafter neglected to pay the sum or to secure or compound for it to the reasonable satisfaction of the creditor . . . ”

On June 30 2014, Phiri and Uriri, on behalf of CAPS United, acknowledged that the club owed Jere $1,4 million.

Part of the acknowledgment signed by Uriri and Mr Phiri reads:

Source : The Herald