Telecel Zimbabwe corporate rescue a legal nullity

Telecel Zimbabwe corporate rescue a legal nullity - Makamba

Hosia Mviringi

Telecel Zimbabwe, the country’s third largest Mobile Network Operator, has refuted claims that the company has been put under Corporate Rescue Proceedings as claimed in a Notice published in the government Gazette of 12 May 2023.

In a statement to shareholders and all stakeholders, the company, through its Board Chairman, Dr. James Makamba said that the legal process by the Communication and Allied Workers Union of Zimbabwe, which was used as the basis for the Corporate Rescue Proceedings was successfully challenged at the High Court, rendering the Notice a legal nullity.

“Telecel Zimbabwe (Pvt) Ltd wishes to assure the public, stakeholders, creditors, and all interested Telecel persons that it continues to provide its services as normal. 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 and Associates legal practitioners. That application was opposed. The outcome of those proceedings awaits a set down date to determine the validity and merits,” said Dr. Makamba.

Telecel Zimbabwe argues that the purported Corporate Rescue Procedure is s dummy as it violates the right to be heard since it comes before a full adjudication of the opposition to the legal process. As such the belated Notice published in the government Gazette was both a legal nullity and a desperate attempt at sanitising the procedural defects raised in opposition by Telecel Zimbabwe lawyers.

Dr. Makamba revealed that Telecel Zimbabwe remains on course to deliver enhanced professional services to its stakeholders and customers that company is in the advanced stages of a recapitalisation program which is set to see shareholders inject fresh capital towards a renewed phase of sustainable growth.

“All interested stakeholders, including the public, our customers, creditors are assured that there is no valid basis to assert that Telecel Zimbabwe 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.”

Corporate Rescue proceedings are a last ditch action by creditors seeking to save a business and defend the company from possible lawsuits.

Under the country's Insolvency Act, Corporate Rescue proceedings only begin when an affected party approaches the Court seeking an order to place the business entity under supervision as a way to protect their interests. However, in this particular case the claim by the Communication and Allied Workers Union of Zimbabwe has been opposed and is awaiting adjudication.

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