The National Social Security Authority (NSSA) was reportedly threatened off from taking over the Longchen Mall by Zimbabwe Defence Forces which own Fernhaven Investments.
NSSA is believed to have made a move to take over the Mall over a US$15.8 million debt default.
The recently released NSSA report suggests that Fernhaven offered the Mall as security to guarantee a loan facility that Africom (Private) Limited had contracted but was failing to repay.
The report suggests that NSSA which had a shareholding of 4.5% only was in 2013 compelled to become a guarantor of a loan facility after other shareholders including Fernhaven which owns a shareholding of 51% had continued to default payment.
When NSSA paid the money, it was entitled to the Mall which had been listed as security.
NSSA’s reluctance from taking over the Mall has made others to conclude that the army scared NSSA away. Part of the NSSA report reads:
As per the indemnity agreement, NSSA should have foreclosed on the Fernhaven pledged Longchen property in order to raise the money to settle the debt.
We were not availed with evidence of the authority (NSSA) making efforts to foreclose on the pledged property. Instead, NSSA approached Zimbabwe Asset Management Company (ZAMCO) to take over the debt.
The report also noted that ZAMCO had to be paid $600 000 if it had managed to engage the Ministry of Defence and persuade it to pay part of the debt.
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