MHMK Group Founder and CEO, George Manyere has rubbished reports of alleged failure to honour a deal with a former partner, Douglas Mamvura.
MHMK owns local Micro-Lender FirstCred Limited which was rebranded from Getbucks Limited in 2020. The micro-lender is working on making a comeback by restructuring its debts and raising capital in Botswana and the region.
Confidential information seen by this publication shows that FirstCred is preparing to present a workable solution to the courts with the hope of returning to full operations. The company has propositioned their creditors with the hopes of working through a refinancing plan.
Manyere rubbished Zimbabwean media reports that Mamvura had accused Manyere of skipping out on a US$ 4 million-payment to the former as proceeds of a sale of shares in an investment company they co-owned. The publication had quoted a letter of demand that paints Manyere as an untrustworthy partner with a questionable character.
“Unbeknown to our client, in April 2009, you both proceeded to fraudulently secure further funding from BancABC Zimbabwe to the tune of US$ 670 369.81, after fraudulently misrepresenting to BankABC Zimbabwe that additional facility was from the purchase of an additional 10 percent in Premier Finance Group Limited which purchase never occurred.”
Dr. Mamvura sold his shareholding in Premier Finance Group (PFG) in 2010, following the release of the security he had pledged for a loan secured from BancABC, which he, together with then business partners Manyere and Walter Kambwanji, was used to buy 28 percent in the financial services group, it has been established.
The revelation comes after Dr. Mamvura recently wrote a letter demanding about US$4 million from Manyere and Kambwanji from proceeds of the sale of Ecobank shares in 2015.
The transaction was valued at US$12,5 million. It has however emerged that Dr. Mamvura was bought out of PFG in 2010 in a transaction that involved the settlement of his liabilities in respect of the loan advanced to him to buy the shares in PFG, which was partly paid off and the securities he had pledged as collateral being released to him.
Through Brainwork Investments, the three bought 28 percent of PFG from investment vehicles which were owned by businessman, Exodus Makumbe in April 2009, and the transaction was financed by African Banking Corporation, now BancABC. The trio pledged the shares they had acquired and properties as security.
The accusation has been labelled as an attempt to tarnish Manyere’s reputation and to discredit investors’ confidence especially for FirstCred Limited. This comes after it has been discovered that FirstCred Limited books are looking good and stand a chance of getting investor confidence and good business deals.
FirstCred Limited in August last year survived liquidation over the disputed funds it allegedly misappropriated thanks to Gaborone High Court Judge, Dr. Zein Kebonang. The 1st Petitioner (ALCB FUND) and 2nd Petitioners (MINITOS MARKET PLACE) sought the winding up of the 1st Respondent (FirstCred).
In his judgement, Justice Dr. Kebonang stated that the categories or headings under which a just and equitable winding up petition might be brought is not to be regarded as limited to the sum of particular instances, such as loss of substratum or a breakdown of trust and confidence, but can also include instances where the company has no hope of paying its debts due to liquidity problems.
The petitioners sought a Court order to place FirstCred under provisional liquidation and for a Rule Nisi that all interested persons show cause why the provisional order should not be made final.
In addition, directing the Master, subject to the provisions of the Companies Act respectively, to appoint Nigel Dixon Warren as Provisional Liquidator of the 1st Respondent, to hold office until the appointment of a liquidator; granting leave to the Provisional Liquidator to carry on or discontinue any part of the business of 1st Respondent, which in his view is necessary for the beneficial winding up of 1st Respondent pending the first meeting of creditors; and to grant him the powers to take decisions to safeguard the business operation and assets of FirstCred for the benefit of all creditors as envisaged by the Act.
FirstCred is a micro-lending company operating in Botswana. Sometime in 2016, it approached BSE for authorisation to raise capital in the debt market by floating a Domestic Medium Term Bond Note.
“The request was approved and in early 2017, FirstCred went into the debt market with a P500, 000, 000 Bond Note. On the 24th February 2017, FirstCred issued its first Note of P21 million with a maturity date of the 24th February 2020,” the judge said.
MHMK owns local Micro-Lender FirstCred Limited which was rebranded from Getbucks Limited in 2020. The micro-lender is working on making a comeback by restructuring its debts and raising capital in Botswana and the region.
Confidential information seen by this publication shows that FirstCred is preparing to present a workable solution to the courts with the hope of returning to full operations. The company has propositioned their creditors with the hopes of working through a refinancing plan.
Manyere rubbished Zimbabwean media reports that Mamvura had accused Manyere of skipping out on a US$ 4 million-payment to the former as proceeds of a sale of shares in an investment company they co-owned. The publication had quoted a letter of demand that paints Manyere as an untrustworthy partner with a questionable character.
“Unbeknown to our client, in April 2009, you both proceeded to fraudulently secure further funding from BancABC Zimbabwe to the tune of US$ 670 369.81, after fraudulently misrepresenting to BankABC Zimbabwe that additional facility was from the purchase of an additional 10 percent in Premier Finance Group Limited which purchase never occurred.”
Dr. Mamvura sold his shareholding in Premier Finance Group (PFG) in 2010, following the release of the security he had pledged for a loan secured from BancABC, which he, together with then business partners Manyere and Walter Kambwanji, was used to buy 28 percent in the financial services group, it has been established.
The revelation comes after Dr. Mamvura recently wrote a letter demanding about US$4 million from Manyere and Kambwanji from proceeds of the sale of Ecobank shares in 2015.
The transaction was valued at US$12,5 million. It has however emerged that Dr. Mamvura was bought out of PFG in 2010 in a transaction that involved the settlement of his liabilities in respect of the loan advanced to him to buy the shares in PFG, which was partly paid off and the securities he had pledged as collateral being released to him.
Through Brainwork Investments, the three bought 28 percent of PFG from investment vehicles which were owned by businessman, Exodus Makumbe in April 2009, and the transaction was financed by African Banking Corporation, now BancABC. The trio pledged the shares they had acquired and properties as security.
The accusation has been labelled as an attempt to tarnish Manyere’s reputation and to discredit investors’ confidence especially for FirstCred Limited. This comes after it has been discovered that FirstCred Limited books are looking good and stand a chance of getting investor confidence and good business deals.
FirstCred Limited in August last year survived liquidation over the disputed funds it allegedly misappropriated thanks to Gaborone High Court Judge, Dr. Zein Kebonang. The 1st Petitioner (ALCB FUND) and 2nd Petitioners (MINITOS MARKET PLACE) sought the winding up of the 1st Respondent (FirstCred).
In his judgement, Justice Dr. Kebonang stated that the categories or headings under which a just and equitable winding up petition might be brought is not to be regarded as limited to the sum of particular instances, such as loss of substratum or a breakdown of trust and confidence, but can also include instances where the company has no hope of paying its debts due to liquidity problems.
The petitioners sought a Court order to place FirstCred under provisional liquidation and for a Rule Nisi that all interested persons show cause why the provisional order should not be made final.
In addition, directing the Master, subject to the provisions of the Companies Act respectively, to appoint Nigel Dixon Warren as Provisional Liquidator of the 1st Respondent, to hold office until the appointment of a liquidator; granting leave to the Provisional Liquidator to carry on or discontinue any part of the business of 1st Respondent, which in his view is necessary for the beneficial winding up of 1st Respondent pending the first meeting of creditors; and to grant him the powers to take decisions to safeguard the business operation and assets of FirstCred for the benefit of all creditors as envisaged by the Act.
FirstCred is a micro-lending company operating in Botswana. Sometime in 2016, it approached BSE for authorisation to raise capital in the debt market by floating a Domestic Medium Term Bond Note.
“The request was approved and in early 2017, FirstCred went into the debt market with a P500, 000, 000 Bond Note. On the 24th February 2017, FirstCred issued its first Note of P21 million with a maturity date of the 24th February 2020,” the judge said.
