Former chairperson of the defunct SME Bank Andrew Ndishishi has withdrawn a legal application in which he sought leave to appeal against a court’s decision to keep him on and other directors in the lawsuit filed by the bank liquidators.
In court documents filed in the High Court, Ndishishi, through his lawyers at Murorua Kurtz Kasper Incorporated, indicated he opted not to proceed with the leave appeal application to the Supreme Court.
“The first defendant (Ndishishi) consequently withdraws the application for leave to appeal – and after engagements with the plaintiffs (liquidators), the parties have reached an agreement on the aspect of cost,” reads the court documents.
Ndishishi had filed an appeal, arguing that judge Hannelie Prinsloo misdirected herself in law when she dismissed the exception application by him against the lawsuit filed by the liquidators against him and fellow directors, which include minister Frans Kapofi, the secretary to the Cabinet George Simataa, Milka Mungunda, Petrina Nakale and Justus Hausiku.
Ndishishi claims he was no longer serving as a bank director at the time when at least N$247.5 million was allegedly misappropriated.
Ndishishi, Kapofi and Simataa each served as board chairpersons of the bank between 2011 and 2017. The liquidators, David Bruni and Ian McLaren are seeking a court order, declaring Ndishishi and his fellow directors liable for the bank’s liabilities and debts.
Furthermore, they should be ordered to pay back the money they were paid while serving as board members.
They are claiming N$198 000 from Ndishishi, N$331 000 from Kapofi, N$203 570 from Simataa, N$478 330 from Mungunda, N$436 000 from Nakale and N$111 000 from
Hausiku.
The liquidators are claiming that the bank’s directors knew the bank was being run recklessly, which allegedly enabled Zimbabwean nationals Enock Kamushinda, the SME Bank’s former CEO Tawanda Mumvuma, the bank’s former finance manager Joseph Banda, a former assistant finance manager of the bank Simbarashe Magombedze and Kamushinda’s personal assistant Chiedza Goromonzi to defraud the bank.
The two liquidators say the theft of N$247.5 million would not have occurred if Ndishishi and the other directors had performed their duties as directors.
Also, they should never have accepted their appointments as directors while knowing they had no knowledge or skills to serve in a financial institution. The matter will return to court on 4 July. – mamakali@nepc.com.na