The CFX Bank ownership dispute has taken yet another twist with Laywers representing Gilbert Muponda advising Interfin Bank to trade cautiously on their reported interest in acquiring a controlling stake in CFX Bank which Muponda alleges was illegally and irregularly snatched from him.The full letter by Muponda’s laywers .GUTU and CHIKOWERO – Attorneys at Law is reproduced below.

OUR REF: OCG/pmd/2
OUR REF: OCG/pmd/2

Monday, November 2, 2009

The Managing Director

Interfin Holdings Limited

15th Floor, NSSA Building

Cnr Sam Nujoma St/Julius Nyerere Way

HARARE

Attention: Mr. R. Njanike

Dear Mr. Njanike

Re: OUR CLIENT ENG CAPITAL (PVT) LTD: INTEREST IN CFX FINANCIAL SERVICES LIMITED

Mr. Gilbert Muponda, the Managing Director of ENG Capital (Pvt) Ltd has mandated us to write to you. Kindly note our interest.

We recently learnt, through some local media reports, that Interfin Holdings Limited is now firm favourate to acquire a controlling stake in CFX Financial Services Limited ahead of the Finance Bank of Zambia. We are of the humble view that your company should formally be made aware of our client’s proprietary interest in the shareholding of CFX Financial Services Ltd. For your convenience, therefore, we forward herewith copies of the following documents:

a) our letter dated October 19, 2009 addressed to the Company Secretary at CFX Financial Services Limited;

b) our letter dated October 27, 2009 addressed to the Minister of Finance;

c) our client’s letter dated August 10, 2009 addressed to the Minister of Finance; and

d) letter dated October 29, 2009 addressed to ourselves by Messrs. Kantor & Immerman.

Kindly note that our client’s main bond of contention is the argument that CFX Financial Services Limited took over Century Bank which belonged to ENG Capital (Pvt) Ltd. Whether or not ENG Capital (Pvt) Ltd is operational is not relevant at this juncture. What is relevant is the fact that Century Bank was owned by ENG Capital (Pvt) Ltd at the time that it was acquired by CFX Financial Services Limited. Put alternatively, it is incumbent upon CFX Financial Services Limited to provide a clear audit trail of how it acquired Century Bank. Thus, the issue of the 309 million shares that were held by our client in Century Bank becomes pertinent. Who purchased these shares and at what price? Why were the shares sold at a special bargain price? At the end of the day, who was the real beneficiary of this particular transaction?

As you may be aware of, Mr. Gilbert Muponda is still a specified person although measures are presently being taken to have him de-specified. We are firmly convinced that our client’s specification was part of a grand plan to unlawfully dis-possess him of his 309 million shares in Century Bank. Assuming for one moment that the said shares were sold by the curator for the purpose of allegedly paying off ENG Capital (Pvt) Ltd’s creditors and depositors; then a detailed disclosure of this payment plan should be made available. To date, this has not been done thus raising more questions than answers.

We trust that the information that we have availed to your company will assist in helping you make an appropriate decision concerning the reported interest by your company in CFX Financial Services Limited.

Yours faithfully

SENATOR O.C. GUTU

GUTU & CHIKOWERO

cc client

cc The Managing Director

CFX Financial Services Limited

Attention: Mr. Emmanuel Tagarira

(This is for your information.)

cc Messrs. Kantor & Immerman

Attention: Mr. A.B. C. Chinake

cc Minister of Finance

cc Governor

Reserve Bank of Zimbabwe