News / National
Chombo can settle US$100,000 debt to Mtetwa in ZiG
1 hr ago |
143 Views
The Mashonaland West Provincial Affairs and Devolution Minister Marian Chombo is required to pay a US$100,000 debt to Mtetwa and Nyambirai Legal Practitioners in local currency, the High Court of Zimbabwe has ruled.
The debt, originally acknowledged on September 2, 2014, was the subject of a Supreme Court referral instructing the High Court to determine how the law affects the currency in which the liability should be settled.
Justice Mambara emphasised that the court's mandate was strictly to address the issue remitted by the Supreme Court. "This court must give effect to the directions of the appellate court and determine the remitted issue only," he said.
The High Court confirmed that the US$100,000 debt existed and remained unpaid as of February 22, 2019 - the date Statutory Instrument 33 of 2019 (SI 33/19) came into effect. Lawyers for Mtetwa and Nyambirai had argued that the debt should remain payable in US dollars, citing a US$2,360 payment made by Minister Chombo in 2024 as evidence of continued acknowledgment in foreign currency.
However, Justice Mambara ruled that SI 33/19 automatically converts qualifying liabilities into local currency as of February 22, 2019. "The application of SI 33/19 to a qualifying liability is by operation of law. Once the statutory conditions are met, the deeming follows," he explained.
The court also found no evidence that the 2014 debt had been novated or replaced by a new agreement allowing it to remain denominated in US dollars. Later developments, including the 2024 payment, did not change the fact that the liability falls under SI 33/19.
As a result, the High Court ordered that the US$100,000 debt be converted into Zimbabwe dollars at the statutory rate provided under SI 33/19. The US$2,360 payment made in 2024 will be treated as a credit against the debt, converted into local currency according to the applicable legal provisions.
Minister Chombo, represented in court by Jonasi Dondo, was also ordered to pay interest from the date the summons was issued until full settlement, as well as the legal costs of the case.
The debt, originally acknowledged on September 2, 2014, was the subject of a Supreme Court referral instructing the High Court to determine how the law affects the currency in which the liability should be settled.
Justice Mambara emphasised that the court's mandate was strictly to address the issue remitted by the Supreme Court. "This court must give effect to the directions of the appellate court and determine the remitted issue only," he said.
The High Court confirmed that the US$100,000 debt existed and remained unpaid as of February 22, 2019 - the date Statutory Instrument 33 of 2019 (SI 33/19) came into effect. Lawyers for Mtetwa and Nyambirai had argued that the debt should remain payable in US dollars, citing a US$2,360 payment made by Minister Chombo in 2024 as evidence of continued acknowledgment in foreign currency.
The court also found no evidence that the 2014 debt had been novated or replaced by a new agreement allowing it to remain denominated in US dollars. Later developments, including the 2024 payment, did not change the fact that the liability falls under SI 33/19.
As a result, the High Court ordered that the US$100,000 debt be converted into Zimbabwe dollars at the statutory rate provided under SI 33/19. The US$2,360 payment made in 2024 will be treated as a credit against the debt, converted into local currency according to the applicable legal provisions.
Minister Chombo, represented in court by Jonasi Dondo, was also ordered to pay interest from the date the summons was issued until full settlement, as well as the legal costs of the case.
Source - the herald
Join the discussion
Loading comments…
