AAG, auctioneers headed for clash

Markets
THE Affirmative Action Group (AAG) and a local auctioneer are headed for a clash amid revelations the auctions of properties belonging to local entrepreneurs who owe banks will go ahead as scheduled on Friday.

THE Affirmative Action Group (AAG) and a local auctioneer are headed for a clash amid revelations the auctions of properties belonging to local entrepreneurs who owe banks will go ahead as scheduled on Friday. GAMMA MUDARIKIRI OWN CORRESPONDENT

While the vocal AAG yesterday maintained its stance to block the move by financial institutions to recover outstanding and unpaid loans, a local auctioneer charged with disposing of the property said that the action would go ahead as scheduled.

AAG last week threatened to stop banks from auctioning properties which include 20 residential houses among other things, arguing the sale of the houses was unfair to the business community in Bulawayo considering the harsh economic conditions which have seen companies closing.

However, the auctioneer Michael Nekati told Southern Eye Business yesterday that the properties would still go under the hammer as scheduled, adding that any interference would be contempt of court.

“I cannot be found in contempt of court by not executing the duty I have been assigned. If they decide to shoot me on Friday I doubt if that will clear the debt. Another auctioneer will be appointed,” Nekati said.

“If anyone has an objection to auction there are proper channels to follow,” he added.

Nekati said there were multiple stakeholders involved in the process including the Reserve Bank of Zimbabwe, the Justice ministry, and the Bankers’ Association of Zimbabwe and as such the auction could not just be cancelled.

But the AAG yesterday insisted it would move to stop the auction as planned in an effort to protect local companies.

“We are continuing as planned and we will make sure that we stop the auction,” AAG Bulawayo province principal officer Silani Matshiya said.

“The auction is unfair for business in Bulawayo considering the harsh economic conditions,” he added.

The lobby group said banks were abusing clients and they should not be allowed to auction any property as business, especially in Bulawayo, was in distress and not in a position to finance debts.

The AAG Bulawayo branch has been calling for a moratorium on litigation against businesspeople battling to pay rentals and other utilities in the city.

It argued that litigations had become big business and were negatively impacting on Bulawayo’s economy.

The banks seeking to recover debts in Bulawayo include Ecobank Zimbabwe (formerly Premier Banking Corporation), MBCA Bank and Interfin Merchant Bank.