Delma Lupepe’s collapsing empire

By The Southern Eye | Jul. 14, 2013

PROMINENT businessman Delma Lupepe seems to have fallen on hard times, as his business empire appears to be on the verge of crumbling.

Gamma Mudariki

Investigations carried by the Southern Eye this week revealed that all is not well in the tycoon’s business interests and he could be on the verge of losing some of his property, which once made him a household name.

Lupepe’s companies Bernard Construction and Merlin, which is now under judiciary management, have not been remitting annual returns for the past 13 years at the Registrar of Companies and they may soon be delisted.

In a letter dated November 26 2004 by the Chief Registrar of Companies, Merlin was referred to as defunct and there were moves to register it.

“The above-mentioned company appears defunct,” the letter reads. “It will be appreciated if you take the necessary action to place the company on the next B list.”

A company is placed on a B list when the Registrar of Companies believes that it is no longer operational. The directors are then warned that the company is on the verge of being struck off and must comply with provisions of the Companies Act.

However, it seems the companies have not complied and may soon be deregistered.

Keep Reading

Lupepe owns Merspin, once the country’s biggest towel manufacturer, Water Supplies, and through that company, in 2007 he came up with an ambitious project to boost Bulawayo’s parched water reserves.

As if to make matters worse, last week the Southern Eye revealed that the Deputy Sheriff had attached three of Lupepe’s houses, which will be auctioned this Friday.

Three financial institutions, Premier Banking Corporation, MBCA Bank and Interfin Merchant Bank of Zimbabwe, swooped on three of his houses in the city which they intend to auction to recover undisclosed debts his companies owe the financial institutions.

The properties, one at No 73 Heyman Road in Suburbs in Bulawayo, 295 Colleen Road, Matsheumhlophe — where his mother stays — and his flat at No 1201 12th floor Kenilworth, will be auctioned to recover undisclosed debts which his companies Merspin and Bernard Construction owe to various financial institutions.

In 2011, the business mogul was dragged to court by Old Mutual Property Investments Corporation over a $450 000 debt after his companies Zimbabwe Express Services Limited and Merspin Limited failed to pay rentals.

He also had running battles with his employees over failure to pay salaries, with arrears as high as $300 000.

The former Amazulu Football Club owner has attributed the failure of his businesses to the difficult operating environment, particularly in Bulawayo.

Lupepe was once counted among the richest Zimbabweans owning various companies in mining and manufacturing.

The collapse of his empire is a far cry from the businessman, who once splashed his wealth on luxuries and trinkets.

In 2009 the tycoon married medical doctor, Abigail Mabaleka, at a flamboyant ceremony held at the Seventh Day Adventist Selbourne Park Church, whose construction he financed.

The elegant wedding was attended by high profile figures including the late Vice-President Joseph Msika, Retired Colonel Tshinga Dube, tycoon Dinesh Naran and the then executive mayor Japhet Ndabeni-Ncube.

Lupepe once revealed that despite having several houses, he was living at the Holiday Inn, as testament to his riches then. The businessman would fly, on private jets, from Bulawayo to Johannesburg, South Africa,where he did his shopping.

Then, he also revealed that he was a collector of expensive cars and he had a few of them in his garage.

Strenuous efforts to get an effort from Lupepe in the past two weeks have been in vain. Lupepe’s mother, Grace, who is listed as a co-director in the stricken companies, declined to comment, saying she did not do business on Saturday as she is an Adventist.

“I will not comment on that,” she said. “After all I do not do business on Saturday.”