A High Court judge has declared former ReNaissance Financial Holdings group chief executive officer, Patterson Fungayi Timba insolvent after failing to raise $1 815 117 and settle a debt with First Mutual Holdings (Ltd).
Justice David Mangota made the sequestration on the banker’s estate on June 8, 2018 following an application by First Mutual Holdings sometime in February this year.
“The applicant (First Mutual), in my view, meets all the requirement of the sequestration of the respondent (Timba). The outstanding part of the debt which he owes to the applicant is very substantial. Given his financial position, the probabilities are that he will not be able to pay it off,” Justice Mangota said.
“The respondent’s assertion which was to the effect that he would pay off the debt as soon as RMB recovers is as meaningless as he stated it. He did not state the date or period when RMB would recover, if it will. He did not say how he could cause it to recover, if it will. He did not state the circumstances under which it would recover. He submitted candidly though, that he was not employed and was unemployable because of his association with RMB which, according to him, was placed under curatorship.”
According to Justice Mangota’s judgement, sometime in February 2015, First Mutual Holdings obtained judgement against Timba for the payment of the claimed amount together with interest at the prescribed rate with effect from the date of judgement up to date of payment in full and costs of suit.
On March 11, 2015 First Mutual issued a writ of execution against Timba, who is also the owner of the now defunct, Renaissance Merchant Bank (Ltd) (RMB), leading to the attachment of his goods which were sold and only managed to raise $1 230.
After failing to raise enough money, First Mutual then caused attachment of Timba’s immovable property but it was later discovered that the attached property was co-owned by Timba and his wife hence the Sheriff could not execute property claimed by a third party.
First Mutual then petitioned the court arguing that Timba had committed an act of insolvency after failing to satisfy the writ of execution upon demand by the Sheriff.
Timba challenged the application saying First Mutual’s intention was to cripple him and his RMB adding the sequestration of his estate would make it impossible for him to pay the debt.
Justice Mangota dismissed Timba’s claim saying, the banker had indeed failed to satisfy the writ of execution and had no means whatsoever to raise the claimed amount.