FDH gets injunction on Maranatha case

FDH Bank has got a court order staying execution of another court order which saw Sheriffs pounce on the bank on Tuesday morning where they seized five computers and a printer.

Head of Marketing  at FDH Bank, Sobhuza Ngwenya, said in an interview with Nyasa Times that they managed to get the ‘stay order against the order of execution pending a court appearance before a judge on Wednesday afternoon.’

Sheriffs pounced on Umoyo Branch of FDH Bank on Tuesday morning in enforcement of damages of liability in which Maranatha Girls Academy were awarded about K785 million.

FDH Bank said in a statement yesterday that it was surprised in the way the Sheriffs acted on the matter.

“FDH Bank is surprised by the conduct of the whole matter, especially noting that the Bank was not allowed time to look at the judgment and make appropriate decision before the sheriffs could seize its property, all in a period of less than 24 hours,” reads the statement signed by Ngwenya.

“It should be noted that Maranatha Girls academy owes FDH Bank MK281,820,906.47. This amount has been outstanding for several years and FDH has been trying to recover this money by selling the collateral that was given as security for this loan.”

“However, when FDH advertised the property for sale, Maranatha Girls academy is claiming that the advertisement resulted in the loss of business. This was the basis for the claim under which the whole of this matter is based. Meanwhile FDH Bank cannot recover this debt because the Court stopped this process through an injunction that has yet to be lifted,” said Ngwenya.

Ngwenya said FDH Bank Limited is surprised with the way that the Sheriffs executed this judgment because FDH Bank lawyers received the judgment on the afternoon of 4th April 2016 and they gave the judgment to FDH Bank in the morning of 5th April 2016 at around 09h.00.

“FDH Bank lawyers immediately tried to get a stay order on the judgment on the same afternoon 4th April 2016 so that an appeal can be filed with the Court. The court instead ordered to hear the stay order arguments at 13h30 on Tuesday 5th April 2016.”

“While FDH was waiting for this process, within one hour of receiving the copy of the judgment, the sheriffs had come at around 10h30 to seize properties,” said Ngwenya.

Meanwhile, Ngwenya said all the properties seized have been returned to the bank.