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RBZ hauled to court over US$225,000 debt

by Staff reporter
25 Feb 2020 at 06:32hrs | Views
THE Reserve Bank of Zimbabwe (RBZ) has been hauled to the High Court by the National Business Council of Zimbabwe (NBCZ) for failing to settle its US$255 000 debt.

At the time the deal was made the interbank rate of US dollar to Zimbabwean currency was 1:10 but the RBZ only decided to pay its debt in full on August 16, 2019 after some monetary policy changes were effected.

The national bank paid ZWL$250 000 which is equivalent to US$25 000 using the then prevailing interbank rate and the NBCZ insists it is still being owed US$225 000.

"Plaintiff's(NBCZ) claim is for the payment of the sum of US$225 000 calculated at the official interbank rate of exchange ZWL to USD on the date of payment together with interest thereon at the prescribed rate of interest from January 7, 2019, to the date of full payment being outstanding amount for work done . . .

" claims NBCZ through its attorneys Chakanyuka and Associates. According to the court papers, the debt was a result of a conference that was hosted in July 2018 by the NGO lobby group to empower war veterans where RBZ pledged to fund the business management training as part of its social corporate responsibility programme. Then in November 2019, NBCZ formally engaged RBZ, crafted the budget, in consultation with the Ministry of War Veterans to carry out a census of war veterans and their dependants.

"Upon completion of the programme, they raised their invoice in the sum of US$250 000 on January 7, 2019.

"The letter dated January 7, 2019, advised RBZ of National Business Council's intention to revise the figure if not paid on time because of the effects of inflation that was eroding the value of the money owed in RTGS. Despite work having been done and several reminders, defendant (RBZ) did not pay the amount," read the summons.

The business council also wants the RBZ to pay the costs of the suit. The case is yet to be set down for hearing.

Source - the herald