Access Finance (Pvt) Ltd. CEO Faces Backlash over Equity Deal
New details have emerged about the acrimonious fallout between shareholders of Access Finance (Pvt) Ltd and related entities, revealing a fierce clash between company executives.
The dispute arose when the CEO, Singathini Raymond Chigogwana, failed to honor a deal to sell 10 percent of the company’s equity to the managing director, Senziwani Sikhosana, during a period of significant profitability.
According to court documents obtained by ZimLive.com, Chigogwana, who held a majority 54 percent shareholding, and Sikhosana, with a 20 percent stake as the managing director, had initially agreed on the share transfer arrangement when they began working together in 2014.
However, when the time came to execute the deal, Chigogwana reneged on his commitment. This led to a bitter dispute that ultimately resulted in an irreparable rift, making any future cooperation or settlement impossible.
Chigogwana and Sikhosana were business partners involved in various companies, including Access Forex (Pvt) Ltd, Access Finance (Pvt) Ltd, Tara Capital (Pvt) Ltd, Thirty-Six Mountbatten (Pvt) Ltd, and Access Forex SA (Pty) Ltd.
However, their disagreement over shareholding triggered a damaging conflict, prompting both key shareholders to exit the business through separate deals, thereby jeopardizing the company’s survival. Sikhosana departed last year, and Chigogwana recently announced his departure.
To resolve the dispute, Sikhosana sold his shareholding back to the company, initially seeking US$1 million but reluctantly agreeing to a reduced amount of US$600,000.
The buyout deal involved a cash payment of US$280,000, offsetting US$140,000 of Sikhosana’s debt to the company, and the remaining US$140,000 to be paid in two installments of US$80,000 and US$60,000.
Additionally, Sikhosana was entitled to three townhouse units valued at US$320,000.
Although the cash payments were made, the transfer of the properties and title deeds has not been completed. Consequently, Sikhosana had to resort to legal action in the High Court to assert his ownership rights.
The court case, HC1007/23, involves Sikhosana, his entities Ferden Investments, Rock Drill Mining, and Seanmart Investments as applicants, and Chigogwana, Bwerinofa, Thirty-Six Mountbatten, Access Finance, Access Forex, Tara Capital, The Sheriff of the High Court, and the Registrar of Deeds and Companies as respondents.
The focal point of the legal dispute revolves around a real estate development called No. 36 Mountbatten Complex in Marlborough, Harare, consisting of 37 townhouse units with a total value of US$3.9 million.
Sikhosana seeks a court order that compels the transfer of specific units (number 19, 8, and 22) to his entities. The draft order also directs the respondents to fulfill all necessary requirements for the transfer within 14 days of the court order. Failure to comply would authorize the sale of the respondents’ properties to cover any outstanding taxes, imposts, and costs associated with the transfer.
Alternatively, Sikhosana requests that the respondents jointly and severally pay the sum of US$320,000, representing the agreed value of the disputed units. Failure to make the payment would authorize the attachment and sale of the respondents’ property, with the proceeds being allocated to the applicants.
Additionally, Sikhosana demands that Chigogwana and the other respondents bear all costs related to the property transfer and legal proceedings.