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FNBS vehicles up for grabs

Staff Writer

THE troubled First National Building Society (FNBS) is off-loading three luxury vehicles formerly owned by the company’s bosses.



ans-serif”>The cars include a white C220 Mercedes Benz sedan, a tourmaline green E280 Mercedes Benz sedan as well as a samarkand blue Peugeot 406 sedan.


The cars have attracted a lot of attention and bidders have been requesting information from PricewaterhouseCoopers in charge of the disposal.


A C-Class Mercedes Benz is going for about $90 million second-hand if it was assembled before 2000.


The money will be used to pay off creditors and customers who have not received any monies from FNBS so far.


FNBS was placed under curatorship David Scott last year after two founding directors – Samson Ruturi and Nicholas Musona – were arrested for allegedly defrauding the society of $1 billion.


Ruturi and Musona have a combined shareholding of 89,74% in the holding company, First National Holdings Ltd (FNHL).


The two have questioned why they are being placed under liquidation and under whose authority this is being done.


The issue has become complicated as some papers filed by the founding directors against the provisional liquidation of the Society were missing from the file when the High Court ruled in the case last month.


Last week FNBS said it had increased mortgage rates with effect from May 1.


The Society said the annual mortgage service fee of $70 000 would be reviewed quarterly.


For a private dwelling house, which is owner-occupied and in the low or high density suburb customers will now have to pay at least 92,6%.


The figure increases for a private dwelling house which is non-owner-occupied which will now go up to a mortgage of 126%.


FNBS said private dwelling houses, which are company-owned, and the sole asset as well as those occupied by directors would now attract 130,1%.


Offices, commercial shops, offices and industrial properties would attract a mortgage of 140,1%.


The beleaguered building society said mortgages for flats whether in the low or high density areas had also increased.

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