The High Court appointed liquidator of Zimbabwe Tobacco Auction Centre, ZITAC, says the company is a serious debt which could see the former tobacco buying entity being declared insolvent.

ZITAC which lost a legal battle with Boka Auction Floors over a lease agreement and was liquidated by the High Court of Zimbabwe recently could soon be declared insolvent following investigations by the liquidator who unearthed the pathetic state of affairs bedevilling the company.

The company’s executive directors which include Mr. Caleb Dengu, Wilson Nyabonda and Robson Chapfika are said to be in trouble allegedly for owing creditors over US$5 million dollars whilst an assessment by the liquidator exposed that the company assets amount to only US$200, a poultry figure compared to the heavy debt.

The liquidator, Mr. Oliver Masomera told ZBC News that they are now instituting a forensic audit to trace the movement of the US$5 million dollars in an effort to recover the money.

A legal practitioner, Mr. Shepherd Makonyere who is handling legal aspects of the liquidation process said although the recovered amount is not enough, all the creditors will be given an equal share.

ZITAC which used to buy tobacco over the past years was put under liquidation by the High Court of Zimbabwe after losing a legal battle with Boka auction floors. While the final liquidation date has been set for the 17th of May ZBC News has it in good authority that ZITAC owes over US$5 million to several companies and individuals including ZIMRA, TIMB, Metropolitan Bank, ZABG, among others.

It has also emerged that the ZITAC directors are allegedly refusing to pay back over US$300 thousand dollars the company borrowed from Metropolitan Bank, putting the blame to the old management, a move observers feel raises eyebrows as the liquidated company also reportedly owes thousands of dollars to the former management and workers in salaries.