News / National
Zimbabwe's 2008 financial crash continues to haunt regulators
2 hrs ago | Views
More than 15 years after Zimbabwe's 2008 financial collapse, the country's financial sector is once again under scrutiny as an estate developer has taken legal action against the Reserve Bank of Zimbabwe (RBZ), the Zimbabwe Revenue Authority (ZIMRA), and a local bank over funds frozen for over two decades.
Mai Kai Real Estate is seeking the release of investments it claims were ceded to it through a 2012 agreement with Twairob Investments (Pvt) Ltd. The assets were originally held by Intermarket Discount House, which was placed under curatorship by the RBZ in March 2004 following liquidity challenges. Court filings show that Mai Kai's accounts at the time included call money totaling Z$8,2 million and a buyback amount of Z$1 billion, but no payout has been made since.
Correspondence between ZB Financial Holding Limited (ZBFHL), which took over Intermarket, and the RBZ has failed to resolve the matter, with each party directing Mai Kai to the other. The developer argues that this inaction amounts to breach of fiduciary duty and unjust enrichment, and is asking the High Court to compel all three entities to honour obligations tied to the investments. The bank, however, has raised preliminary objections, claiming that the cession agreement on which Mai Kai relies is invalid.
The case underscores lingering challenges from Zimbabwe's 2008 financial crisis, which wiped out billions in retirement savings and left thousands of pensioners and investors in limbo. The 2015 Justice Smith Commission of Inquiry estimated losses of about US$5 billion, with government-directed compensation through the Insurance and Pension Commission (Ipec) yet to be finalised. Nearly half of pension schemes were inactive by 2023, while 16 operators had become insolvent.
The unresolved pensions crisis has also influenced other sectors. Medical insurers, represented by the Association of Healthcare Funders of Zimbabwe (AHFOZ), opposed plans to place them under Ipec oversight, citing risks of replicating the inefficiencies and delays that have plagued the pensions sector. AHFOZ warned that government control could impose onerous compliance demands and punitive fines, threatening the stability of health funding.
An Ipec official acknowledged delays but said efforts were ongoing to bring closure in collaboration with stakeholders.
As Mai Kai pursues frozen funds through the courts, the case highlights the enduring legacy of Zimbabwe's economic collapse, raising questions about accountability, investor confidence, and whether trust can ever be rebuilt in the nation's financial system.
Mai Kai Real Estate is seeking the release of investments it claims were ceded to it through a 2012 agreement with Twairob Investments (Pvt) Ltd. The assets were originally held by Intermarket Discount House, which was placed under curatorship by the RBZ in March 2004 following liquidity challenges. Court filings show that Mai Kai's accounts at the time included call money totaling Z$8,2 million and a buyback amount of Z$1 billion, but no payout has been made since.
Correspondence between ZB Financial Holding Limited (ZBFHL), which took over Intermarket, and the RBZ has failed to resolve the matter, with each party directing Mai Kai to the other. The developer argues that this inaction amounts to breach of fiduciary duty and unjust enrichment, and is asking the High Court to compel all three entities to honour obligations tied to the investments. The bank, however, has raised preliminary objections, claiming that the cession agreement on which Mai Kai relies is invalid.
The case underscores lingering challenges from Zimbabwe's 2008 financial crisis, which wiped out billions in retirement savings and left thousands of pensioners and investors in limbo. The 2015 Justice Smith Commission of Inquiry estimated losses of about US$5 billion, with government-directed compensation through the Insurance and Pension Commission (Ipec) yet to be finalised. Nearly half of pension schemes were inactive by 2023, while 16 operators had become insolvent.
The unresolved pensions crisis has also influenced other sectors. Medical insurers, represented by the Association of Healthcare Funders of Zimbabwe (AHFOZ), opposed plans to place them under Ipec oversight, citing risks of replicating the inefficiencies and delays that have plagued the pensions sector. AHFOZ warned that government control could impose onerous compliance demands and punitive fines, threatening the stability of health funding.
An Ipec official acknowledged delays but said efforts were ongoing to bring closure in collaboration with stakeholders.
As Mai Kai pursues frozen funds through the courts, the case highlights the enduring legacy of Zimbabwe's economic collapse, raising questions about accountability, investor confidence, and whether trust can ever be rebuilt in the nation's financial system.
Source - The Independent
