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Prophet Magaya offers ZiG to repay US$3m debt to Israeli businessman
2 hrs ago |
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Prophet Walter Magaya has been ordered by the High Court to pay US$3 million with 3% interest per month from July 1, 2022 to an Israeli businessman, following a legal dispute over a failed joint gold mining project.
Justice Maxwell Takuva ruled against Magaya's defence that Zimbabwe's exchange control regulations rendered the debt unenforceable. The court also allowed for immovable property to be seized if necessary to satisfy the judgment.
The case (HC 621/23) stems from a financial arrangement in which Israeli investors, facilitated by Zimbabwe's Consul General in Israel, Ambassador Ronny Levi Musan, advanced funds for a joint gold mining venture. Under the agreement, Magaya was to receive a 57% stake while the investors held 43%.
Magaya, founder of Prophetic Healing and Deliverance (PHD) Ministries, allegedly failed to honour the agreement, evaded contact, and later offered the Consul General only US$500 000 toward the debt.
Represented by Advocate Garikai Sithole, Magaya argued the deal violated Zimbabwe's exchange control laws and suggested repayment in local currency rather than U.S. dollars. Ambassador Musan, through Advocate Tazorora Musarurwa, countered that the funds were a legitimate foreign investment and that exchange control laws did not apply, warning that accepting Magaya's argument could discourage foreign investors and set a dangerous precedent.
The court's ruling requires full repayment, with interest, until the debt is fully settled, marking a significant decision in protecting foreign investment in Zimbabwe.
Justice Maxwell Takuva ruled against Magaya's defence that Zimbabwe's exchange control regulations rendered the debt unenforceable. The court also allowed for immovable property to be seized if necessary to satisfy the judgment.
The case (HC 621/23) stems from a financial arrangement in which Israeli investors, facilitated by Zimbabwe's Consul General in Israel, Ambassador Ronny Levi Musan, advanced funds for a joint gold mining venture. Under the agreement, Magaya was to receive a 57% stake while the investors held 43%.
Magaya, founder of Prophetic Healing and Deliverance (PHD) Ministries, allegedly failed to honour the agreement, evaded contact, and later offered the Consul General only US$500 000 toward the debt.
Represented by Advocate Garikai Sithole, Magaya argued the deal violated Zimbabwe's exchange control laws and suggested repayment in local currency rather than U.S. dollars. Ambassador Musan, through Advocate Tazorora Musarurwa, countered that the funds were a legitimate foreign investment and that exchange control laws did not apply, warning that accepting Magaya's argument could discourage foreign investors and set a dangerous precedent.
The court's ruling requires full repayment, with interest, until the debt is fully settled, marking a significant decision in protecting foreign investment in Zimbabwe.
Source - Mirror
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