ASSETS
When
asked by her legal practitioner, as he led her in her evidence in chief, as to
what she wanted from the property listed in the joint pre-trial conference
minute, the plaintiff said that she wanted everything to be awarded to her
because she had solely raised the funds that resulted in the acquisition ...
ASSETS
When
asked by her legal practitioner, as he led her in her evidence in chief, as to
what she wanted from the property listed in the joint pre-trial conference
minute, the plaintiff said that she wanted everything to be awarded to her
because she had solely raised the funds that resulted in the acquisition of all
the listed property.
The
plaintiff's evidence was that she was employed by the Council in Rusape in 2001
and that the defendant was employed by the then Post Office Savings Bank…, as
from 1995. She said that in 2003 she was working in the front office at the
Council. During the execution of her duties she would be given gifts in the
form of agricultural produce from councillors, headmen, farmers and chiefs in
appreciation of the service that she was providing. She would then, together
with the defendant, repackage these gifts into five and ten kilogram packets
which they would sell. An amount of ZW$33 million was realized in this way.
This amount was then used to start up a general dealer business called Millionaire
Investments in Rusape. She said that she did the repackaging of the produce
given to her as gifts together with the defendant. She also said that the
defendant did not make any financial or monetary contribution to this business.
She produced as an exhibit, with the defendant's consent, a document titled “P.
Sagandira Trading as Millionaire Investments 31 December 2003;” the document
records that the business, Millionaire Investments, received a loan in the sum
of Z$33,920,400=, apparently from one D.M. Sagandira, presumably the plaintiff.
It further states that the loan was unsecured with no fixed terms of repayment.
Despite
having said that the defendant had not made any contribution to the business
the plaintiff proceeded to state that they
(notably not she) used the money
from the business to purchase a commercial stand No.CBD 2473 and develop on it
a single storey building which is not yet complete. Throughout her testimony
she kept interchanging “We” and “I” as she narrated how various items of
property were acquired. She then said that she
also used proceeds from the business to purchase a commercial stand No.242
Headlands which she developed to slab level only. She said that she was also given an agricultural
plot, No.17 Lee Farm, Nyazura, by Chief Makoni. She said that from the proceeds
from this business they acquired the
Kriste Mambo homestead in Rusape. She said that they also acquired Shop No.5 Pamusika, Rusape and a residential
stand, No.UVE 2606 Vengere Township. She said that after they had acquired the
residential stand she then built a
ten-roomed house from foundation to roofing level and that the defendant only
contributed the last 6 asbestos sheets that were needed for the roofing. She
said that they then did the
finishing touches using funds generated from the business. The finishing
touches included painting, putting up a perimeter wall, commonly referred to as
a durawall, putting up a gate and a carport. She said that all this was
possible as she continued receiving gifts as described above which they
continued to repack and sell. The plaintiff was asked by her legal practitioner
whether the defendant was not assisting in all the businesses that she was
conducting. Her answer was as follows -
“In
terms of monetary value the business was just flowing because of the $33
million which had been ingested (sic)
(injected?) in 2003 and the defendant was assisting me in terms of
administration and I want to point out that on these properties whatever we
acquired, because of love, trust and respectable teachings from background, I,
together with defendant were putting all these properties in defendant's name
as we have been instructed by our background teachings that the man is the head
of the house.”
Whilst
being cross-examined, the plaintiff said that although the plaintiff's
Declaration states that the defendant moved out of the matrimonial home in July
2006, that, in fact, was not a formal separation and that the formal separation
was only in February 2007. When asked how the defendant's salary from the POSB
was spent, the plaintiff's answer was that both parties' salaries were expended
on household expenses. It was put to the plaintiff that the defendant would
accept that she had lent money to the business but would dispute that the said
money was raised from the sale of goods received as gifts as she alleged. Furthermore,
that the defendant would say that the plaintiff stole the money from her
employer, Makoni Rural District Council which money she had to pay back in
order to prevent the law taking its course.
The
plaintiff denied this…,.
The
plaintiff further said that she wished to emphasize that she resigned from
Makoni Rural District Council in February 2005 whilst the defendant resigned
from the Post Office Savings Bank in June 2006. The parties then separated in
February 2007. When the defendant resigned from his formal employment with the Post
Office Savings Bank…, he had no other source of income apart from what he would
get from the business in which she had singly invested the $33 million loan….,.
It
was put to the plaintiff that at the Kriste Mambo homestead there was no
structure of value like a modern house. She said that it is approximately 5
hectares in extent and that they had built two huts on it. She said that its
value was in the fact that it is meant for cattle ranching.
It
was put to the plaintiff that the defendant would admit that she owned an Isuzu
twin cab motor vehicle registration number AAL 9911 but that when the parties
separated he exchanged it for a Nissan Patrol; furthermore, that the defendant
would have no objection if it be awarded to the plaintiff.
The
plaintiff's response was that the said transaction was done without her consent
and she therefore wanted her Isuzu twin cab back….,.
It
was put to the plaintiff that the defendant would admit that he purchased a
Toyota Corolla registration number 840-722C from Brincom Trading (Pvt) Ltd in
January 2007 after they had already separated.
Her
response was that the defendant purchased the said vehicle in January 2007 when
they were still together and that they separated afterwards in February 2007.
It
was suggested to the plaintiff that for her contribution to the marriage she
should be awarded the Headlands business Stand, that is, Stand No.242 Lease No.MKN
153 Headlands and the Kriste Mambo homestead and that this would be in addition
to Plot No.17 Lee Farm which she was given in 2005.
Her
response was that all these properties were acquired from what she had worked
for and that the defendant thus cannot apportion to her property that is hers
anyway. She denied that she was exaggerating her contribution to the
matrimonial property.
It
was put to the plaintiff that she was a mere Finance Clerk at Makoni Rural
District Council for a period of less than five (5) years and that her
contributions were commensurate with that job description or status and not
what she was alleging. She said that she was an Executive Clerk. Furthermore,
it was the defendant himself who had compiled the Financial Statements for
Multimillionaire Investments which clearly indicated that she was the only
contributor or injector of financial resources into the company. She denied
ever stealing any money from Makoni Rural District Council. She emphatically
denied having been given Lee Farm by the defendant on separation. She emphasized
that when they separated the defendant remained in possession, occupation and
use of all the matrimonial property. She reiterated that all the matrimonial
property must be awarded to her to the exclusion of the defendant.
The
defendant gave evidence.
He
said that in June 2002 he applied to Council to be allocated a small shop to
trade in kapenta fish. He was allocated Shop No.5 Pamusika on 10 June 2002. He
produced as exhibit 2 a letter dated 10 June 2002 which was addressed to him by
the Town Engineer of Rusape Town Council. It reads -
“RE:
APPLICATION FOR A SHOP FOR WHOLESALING OF KAPENTA FISH AND FREZITS
Your application was
tabled before Council and your proposal was approved by Council. You will be
allocated a shop once renovation to convert existing market stall into small
shops has been completed.”...,.
He
talked of having had humble beginnings, having started with a bag of fertilizer
which he repacked into small packets for resale. He said that he worked
tirelessly to bring his sole trader business into operation. The money that the
plaintiff keeps talking about as having financed the business was in fact
stolen money which the plaintiff stole from the drought relief programme in
which she occupied the position of a Paying Officer. He later got to know that
she had stolen this as he was summoned by the Makoni Rural District Council
authorities who wanted him to pay the money back to Council. This became the
source of their problems because when he sought to find out from the plaintiff
why she had stolen the money that is when she started saying that she had done
everything using that money, including building their house at Stand UVE 2606
Vengere. He said that he had purchased the Stand at a time when they were
having conflicts and they had almost broken up until the parents of both
intervened. It was then resolved that he would pay to the plaintiff a lump sum
in the amount of $73,200,000= and that he would also give to the plaintiff Plot
No.17 Lee Farm as she was claiming that it had been given to her by Chief
Makoni. The defendant produced as exhibit 3 a handwritten document dated 7
October 2005. It reads -
“The case of
Sagandira vs Kasu
We are paying the Stand
initially purchased by Doreen Kasu Patrick's wife in Headlands. The building
and completion of a residential house in Rusape and the amount she had invested
into the business which they calculated and totaled $73,200,000=. She said she
had stolen this amount from Makoni Rural Dist Council. This amount was to have been settled soon after 23 September 2005
the proceeds from Lee Farm Plot No. 17 The recipient being the Kasu:
Signed (no signature appears after this word)
Witnessed by Elder
Makuyana the paying person on behalf of the Sagandira = H. N. Sagandira (a
signature appears immediately after the name “Sagandira”)
NB
My signature is basing on the receiving of cash by Kasu family = $73,200,000= (a signature appears here as well as the
date, “07/10/05”)”
The defendant said
that the plaintiff demanded that she be reimbursed the amount..., which she had
contributed to the business together with interest. She then personally
calculated the amount, and, with interest, arrived at a total of $73,200,000=.
The
defendant disputed the plaintiff's averment that when she moved out of the
matrimonial home in 2007 they had almost completed building a structure on
Stand 2473. He said they finished paying for the Stand in July 2006 when he had
already moved out of the matrimonial home and construction started in November
2006. He maintained that he started his business without any contribution from
the plaintiff. He produced…, the Memorandum of Agreement of Sale between him
and Rusape Town Council in respect of Stand 2473. The Agreement was signed on
19 July 2006. The Agreement states, among other things, that the Stand shall be
used for commercial purposes only.
Regarding
his employment history he said that he got employed by the then Post Office
Savings Bank…,. in February 1995. He went on voluntary retirement in 2006 and
was paid a retrenchment package in an amount of $18,000= (revalued) which
amount he invested in the business. He said that the plaintiff's salary was
always far less than his as she was employed as a clerk with Makoni Rural
District Council whilst he was employed by a financial institution. He started
off as a Teller and was later promoted to an Internal Auditor with the bank. He
would also benefit from soft loans from the bank and at one stage he was
offered a housing loan which he however failed to utilise as he later found out
that the house that he intended to purchase had been sold to two other people.
The
defendant insisted that the capital used to construct the building where the
company is now housed and to run the business was not generated from the
capital which was contributed by the plaintiff at the beginning. He said that
the business was self-sustaining. However, because of the hyperinflation that
was then experienced in the country all business was eroded. The money that was
in the banks was frozen and price controls affected the stocks of the business.
In 2009 the defendant had to start all over to revive the business and he is
still struggling to put it back in good standing.
With regard to the
Isuzu twin cab the defendant agreed that they purchased it together. It was his
personal car and because it was giving problems he exchanged it for a Nissan
Patrol which he still has in his possession.
The
vehicle referred to as a Toyota Corolla is in fact a Toyota Corona and it was
purchased in January 2007 after they had separated. He produced…, the Agreement
of Sale pertaining to the vehicle. It is dated 19 January 2007. He said that
the plaintiff did not contribute in any way to the acquisition of the vehicle.
As
regards how the property which he agrees that they acquired together should be
distributed, the defendant said that Plot 17 Lee Farm has already been given to
the plaintiff; she could also have Stand 242, Headlands which they acquired
together and on which construction is at slab level; she could also have the
Nissan Patrol although it used to be his personal car. He said that the Kriste
Mambo homestead was given to them by the headman and there are no title deeds
to it. He acquired Stand 2473 on his own after they had separated and this is
the premises from which he is running the business which generates the money
for the support and sustenance of the children and the plaintiff. He has no
other source of income.
While
the source of the money remains unexplained, it is not in dispute that the
plaintiff lent the sum of ZW$33,920,226= to “T. Sagandira trading as
Millionaire Investments.' This is reflected in exhibit 1 and although I have
already indicated that exhibit 3 will not be relied on in the resolution of
this dispute, it does not escape observation that therein the defendant
mentions that the plaintiff invested some money in the business.
It
appears to me that this is a matter in which during the happier times of their
marriage the parties pooled resources and efforts with a view to building a
viable and successful matrimonial estate for their mutual benefit in the
setting of a family unit. It also appears to me that having come upon stormy
times each party now seeks to minimize the other party's contribution and in
the process enhance, if not exaggerate, their own contribution. More of this
attitude is discernible in the plaintiff's case. This is no indication that the
defendant is an angel in this regard…..,.
In
the circumstances of this case, because of the respective parties' lack of
candour with the court, the court is not in a position to evaluate the levels
of their respective contributions to the matrimonial estate. What cannot be
denied, however, is that both parties must have made great contributions
thereto regard being had to the number and type of assets that have, at one
stage or another, been part of it. Whether the injection of ZW$33 million into
the business was done by the plaintiff before or after the business was already
running (the parties disagree on this) does not, in my view, alter the fact of
her financial contribution and it may be noted that the amount in question,
ZW$33 million, was not an insubstantial amount during that time. Yet, it is not
only the levels of their contribution that the court is enjoined by section 7
of the Matrimonial Causes Act [Chapter 5:13] to take into account in arriving
at an appropriate distribution. The court must also consider a host of other
factors including those listed therein.
One
of the factors that the court is enjoined to have regard to is the
income-earning capacity, assets and other financial resources which each spouse
and child has or is likely to have in the foreseeable future. The three minor
children of the marriage were born 31 December 2000, 26 March 2003 and 25
December 2006 respectively. They are thus all below the age of ten. None of
them has any income-earning capacity. None of them has any assets or other
financial resources and there is no indication of this state of affairs
changing in the foreseeable future.
The
defendant is apparently a Director and Shareholder in the company which runs
the business Millionaire Investments, apparently from Stand CBD 2473. He is
also licensed to conduct wholesale trading of Kapenta fish and freezits at Shop
No.5 Pamusika. This has been the family's source of livelihood after both
parties left formal employment. The plaintiff is no longer benefiting from
these ventures except for the contribution towards the minor children's
maintenance which is currently being made by the defendant in the sum of US$60=.
She no longer participates, as she says, she used to do, in the businesses. She
must have been very enterprising hence her capacity or ability to lend money to
the business and to also participate therein and enter into asset acquiring
ventures. There is, however, no evidence she is now earning a living besides
the money received from the defendant. She did not favour the court with this
information. She did not, however, state that she has tried or is trying and
failing to find employment or other means of sustaining herself and also making
her contribution to the upkeep of the children.
The
court is also enjoined to consider the financial needs, obligations and
responsibilities which each spouse and child has or is likely to have in the
foreseeable future.
The
children's basic needs include the need for a roof over their heads, food,
clothing, education and incidental matters as well as medical attention as and
when necessary. The children are and will be in the plaintiff's custody and
their day to day care thus falls on her alone.
The
court must also consider the standard of living of the family including the
manner in which any child was being educated or trained. No peculiar information
was placed before the court in this regard.
The
age and physical and mental condition of each spouse and child must also be
taken into account. Again, the court was not alerted to any peculiar condition
of any of the members of this family.
The
direct or indirect contribution made by each spouse to the family, including
contributions made by looking after the home and caring for the family and any
other domestic duties is another factor that the courts should consider.
I
have already commented on this aspect, though it was mainly in relation to the
parties' financial contributions which I estimate to be of equal value. I would
only add that it was not contended by the defendant that the plaintiff did not
carry out her wifely and motherly duties in this family. Indeed, she continues
to carry out her motherly duties and is likely to do so for several more years.
By the same token the defendant will also have to contribute to the children's
maintenance for several years to come.
The
court is also called upon to take into account the value to either of the
spouses or to any child of any benefit, including a pension or gratuity, which
such spouse or child will lose as a result of the dissolution of the marriage. In
this regard, no pertinent information or evidence was placed before the court.
The
duration of the marriage is another pertinent factor. The parties' marriage was
solemnized on 2 September 2000. The parties have thus been married for ten
years.
In
Hatendi v Hatendi 2001 (2) ZLR 530…, SANDURA JA stated -
“As
KORSAH JA said in Ncube v Ncube 1993 (1) ZLR 39 (S) at 40H-41A, whilst
referring to the facts which the court should take into account in the division
of matrimonial assets in terms of s 7(1) of the Matrimonial Causes Act [Cap
5:13]:
'The
above provisions, to my mind, do no more than furnish broad guidelines for
deciding what is a fair order in all the circumstances, adjusting property
rights if need be, under the wide powers bestowed in the court. The
determination of the strict property rights of each spouse in such
circumstances, involving, as it may, factors that are not easily quantifiable
in terms of money, is invariably a theoretical exercise for which the courts
are indubitably imbued with a wide discretion.'”
From
the evidence adduced by the parties it would appear that the from the property
listed in their joint pre-trial conference minute the following are the only
assets that might still be within the estate even though each asset will need
to be considered separately and individually for purposes of clarity-
“IMMOVABLE
PROPERTY
3.2
The business known as Million Hardware;
3.3
Stand CBD 2473;
3.4
Stand 242 Lease MKN 153 Headlands;…,.
3.6
Kriste Mambo Stand Homestead;
3.7
Shop No.5 Pamusika.
MOVABLE
PROPERTY
3.8
Nissan Patrol (allegedly swapped with Isuzu Twin cab);…,
3.12
Toyota Corolla.”
Of
the above listed assets the defendant has indicated…, that he has no objection
to the following being awarded to the plaintiff; Stand 242 MKN 153 Headlands,
the Kriste Mambo Stand and homestead and the Nissan Patrol.
These
will be awarded to her.
The
result of the defendant's proposal would be that of the listed items the
plaintiff would be awarded two, being one vehicle and one Stand on which has
been constructed a slab only, whilst the defendant would be awarded and/or
benefit from five.
It
appears, in my view, that all considerations being taken into account an
appropriate award to the plaintiff would include not only the three assets in
respect of which the defendant has agreed that an award be made in the
plaintiff's favour. Note is taken in this regard of the plaintiff's legal
practitioner's following statement, amongst other things, in his closing
submissions -
“It
was undeniable in the proceedings that the defendant was in possession of all
the motor vehicles listed in the joint pre-trial conference minute. It again
cannot be a factor admissible from the defendant that he alleges that he knows
nothing of item 3.9, that he sold vehicle 3.10, that he exchanged vehicle 3.8
with a Nissan Patrol. It is submitted that vehicles 3.11 and 3.12 should be
awarded to the plaintiff and a proportionate replacement value of the rest of
the motor vehicles should be paid by the defendant to the plaintiff. This
especially in light of the fact that the defendant was disposing of the motor
vehicles after the issuance of the summons for divorce and he actually had to
be stopped by way of a court order under Case No.HC1961/09…,. It is common
cause that prior to the commencement of business the parties had not acquired
any property of value. According to the defendant, under cross examination, the
parties acquired property after commencement of trading as Millionaire Hardware…,.”….,.
In
my view, the award to the plaintiff should also include the Toyota Corolla
registration number 840-722C despite the defendant's claim that he purchased it
after they had separated.
For
the above reasons the following order is made. It is ordered -
1.
That a decree of divorce shall issue.
2.
...,.
3.
…,.
4.
…,..
5.
That the plaintiff be and is hereby awarded as her sole and exclusive property
the following assets:
(a)
Stand 242 Lease MKN 153 Headlands;
(b)
The Nissan Patrol currently in the defendant's possession;
(c) Toyota Corolla Registration No. 840-722C;
(d)
The Kriste Mambo Stand and homestead.
6.
That the defendant shall, where applicable and/or necessary, in relation to the
assets listed from a to d above, take all the requisite steps including the
signing of any necessary documents to effect registration or change of
ownership as necessary into the plaintiff's name.
7.
That the defendant be and is hereby awarded as his sole and exclusive property
the following:
(a)The business known as Millionaire Hardware;
(b)
Stand CBD 2473;
(c)
Shop No.5 Pamusika;
(d) Toyota Dyna Registration No. AAJ 3536.