Business / Companies
RBZ takes ex-RBZ Governor's company to court
10 Sep 2014 at 03:41hrs | Views
The Reserve Bank of Zimbabwe is embroiled in a legal battle with the firm of its former governor Dr Kombo Moyana over the sale of a block of flats in Avondale, Harare, seven years ago.
The central bank took Dr Moyana's company, Hundred Weight Investments (Pvt) Ltd, to the High Court to compel it to transfer a block of flats the RBZ bought from the company through Vericham Real Estate Private Limited.
The property was sold to RBZ for $200 000 before Zimbabwe introduced the multi-currency regime early 2009.
According to the agreement thrashed out between Vericham and RBZ, the bank would pay $100 000 and another equivalent of $100 000 in local currency.
The local currency equivalent to $60 000 was paid leaving an outstanding balance of $40 000.
Now the central bank wants the property transferred into its name but Dr Moyana denies that he authorised the sale of his property to RBZ, insisting that Vericham misrepresented his position to the central bank and fraudulently sold his property.
The civil trial was set for hearing before Justice Erica Nderere this week, but was postponed because Mrs Moyana, who is supposed to give evidence in the case, is in the United Kingdom.
In its claim, RBZ stated that it paid the purchase price on the date of sale by way of a bank transfer into the Vericham's account.
The central bank, which is being represented by Mr Tawanda Chitapi of T H Chitapi, further stated that when Vericham made its representation, it explicitly showed that it was authorised by Hundred Weight Investment to enter into an agreement of sale as an agent of the company.
After the conclusion of the sale, RBZ said Vericham, still acting as an agent of Hundred Weight Investment, arranged for and signed the declaration by seller and power of attorney in readiness for transfer of the property and additionally was making provision for tax on the capital gains.
Despite a demand for transfer of the property, both defendants, Hundred Weight and Vericham, refused in breach of the contract RBZ says it has.
Through his lawyer Mr Obert Daniel Mawadze of Manase and Manase, Dr Moyana contends that at no time did his company ever mandate Vericham to be its agent for the sale of the immovable property and so Hundred Weight never sold the property to the RBZ.
There was no agreement of sale mandated by Hundredweight's directors.
Mr Mawadze stated that the agreement of sale referred to in the RBZ claim was a fraud as his client never signed or authorised the signing of the document.
He also denied receiving any payment of the purchase price from Vericham.
Mr Mawadze further said the purported agreement of sale was not valid between his client and RBZ since it was never negotiated and agreed to between the parties.
The central bank took Dr Moyana's company, Hundred Weight Investments (Pvt) Ltd, to the High Court to compel it to transfer a block of flats the RBZ bought from the company through Vericham Real Estate Private Limited.
The property was sold to RBZ for $200 000 before Zimbabwe introduced the multi-currency regime early 2009.
According to the agreement thrashed out between Vericham and RBZ, the bank would pay $100 000 and another equivalent of $100 000 in local currency.
The local currency equivalent to $60 000 was paid leaving an outstanding balance of $40 000.
Now the central bank wants the property transferred into its name but Dr Moyana denies that he authorised the sale of his property to RBZ, insisting that Vericham misrepresented his position to the central bank and fraudulently sold his property.
The civil trial was set for hearing before Justice Erica Nderere this week, but was postponed because Mrs Moyana, who is supposed to give evidence in the case, is in the United Kingdom.
In its claim, RBZ stated that it paid the purchase price on the date of sale by way of a bank transfer into the Vericham's account.
The central bank, which is being represented by Mr Tawanda Chitapi of T H Chitapi, further stated that when Vericham made its representation, it explicitly showed that it was authorised by Hundred Weight Investment to enter into an agreement of sale as an agent of the company.
After the conclusion of the sale, RBZ said Vericham, still acting as an agent of Hundred Weight Investment, arranged for and signed the declaration by seller and power of attorney in readiness for transfer of the property and additionally was making provision for tax on the capital gains.
Despite a demand for transfer of the property, both defendants, Hundred Weight and Vericham, refused in breach of the contract RBZ says it has.
Through his lawyer Mr Obert Daniel Mawadze of Manase and Manase, Dr Moyana contends that at no time did his company ever mandate Vericham to be its agent for the sale of the immovable property and so Hundred Weight never sold the property to the RBZ.
There was no agreement of sale mandated by Hundredweight's directors.
Mr Mawadze stated that the agreement of sale referred to in the RBZ claim was a fraud as his client never signed or authorised the signing of the document.
He also denied receiving any payment of the purchase price from Vericham.
Mr Mawadze further said the purported agreement of sale was not valid between his client and RBZ since it was never negotiated and agreed to between the parties.
Source - The Herald
