Prophet Magaya fails to stop US$3m civil claim

Prophet Walter Magaya, leader of Prophetic Healing and Deliverance (PHD) Ministries, has failed in his attempt to halt a US$3 million civil claim brought against him by Israeli businessman Ronny Aharon Musan Levi, after the High Court dismissed his argument that the underlying agreement was illegal.

In a ruling delivered on Wednesday, Justice Maxwell Takuva rejected Magaya's defence, which relied on Zimbabwe's Exchange Control Regulations to challenge the validity of a Memorandum of Agreement and promissory note signed on May 12, 2022. Under the agreement, Magaya received US$3 million from Levi for a mining project and was required to register a first-ranking mortgage over Yadah Hotel Properties within 30 days as security for the loan.

Court documents indicate that Magaya neither registered the mortgage nor repaid the funds, prompting Levi, represented by Advocate Tazorora Musarurwa of Chinawa Law Chambers, to sue for recovery.

Magaya, through Advocate Garikai Sithole of Rubaya and Chatambudza Legal Practitioners, argued that the agreement was void because it allegedly contravened Exchange Control Regulations, which require Reserve Bank approval for certain external payments.

Justice Takuva, however, ruled that the regulations apply to Zimbabwean residents, not foreign nationals such as Levi. The judge emphasised that it was Magaya's responsibility, as the local party, to seek any required authority for future payments.

"The defendant had an obligation to seek authority for a future payment. Surely, the defendant cannot now use his potential or actual breach as a shield to invalidate the entire agreement," Justice Takuva said.

The ruling sharply criticised Magaya, noting the contrast between his conduct and the moral standards expected of a religious leader. "The defendant's conduct in this matter stands in stark and troubling contrast to the very scriptures he professes to hold as a man of God, pastor, and leader of a Christian Ministry," the judge remarked.

Justice Takuva further held that allowing Magaya to rely on the regulations after having solicited and received the full benefit of the funds would constitute using the law as "an engine of fraud," contrary to public policy. Upholding Magaya's argument, the judge noted, would result in him being unjustly enriched by US$3 million at Levi's expense.

Costs were awarded against Magaya on a higher scale, underscoring the court's disapproval of his conduct in the matter.

This ruling marks a significant legal setback for Magaya, who has faced multiple civil and criminal proceedings in recent years relating to financial dealings and allegations of misconduct.