News / National
Wrongly blacklisted businessman sues Barclays Bank
19 Nov 2013 at 12:51hrs | Views
A Harare businessman, who was wrongly blacklisted in the banking sector for 14 years as a bad debtor, has taken Barclays Bank of Zimbabwe to the High Court claiming damages for defamation and loss of business to the tune of $109 million.
Mr Ignatius Ruvinga, who operates hunting safaris, farming and transport businesses, claims Barclays Bank supplied information to the Financial Clearance Bureau, which has offices in Milton Park, and a blacklisting report was compiled labeling him a bad debtor.
He argues that the blacklisting report was circulated to all banks in the country and he was snubbed by banks for almost 14 years resulting in the collapse of some of his business units.
Mr Ruvinga claims he even had a difficult time to open a bank account early this year with Stanbic where he was shown the blacklisting report.
He claims his dreams of becoming a billionaire by 2010 were shattered as a result of the bad relations between him and the banks.
The businessman man argues that he once had a legal dispute with Barclays Bank years back and the court ordered him to pay certain amounts of money and dismissed some of the claimed monies by the bank as unjustified.
Mr Ruvinga paid the money that the court ordered him to pay, but despite that development, he was publicised as a bad debtor and a local company, Financial Clearance Bureau, produced a damning report about him, which was circulated to all banks.
In the summons issued at the High Court on September 26 this year, Mr Ruvinga cited Barclays Bank of Zimbabwe and Financial Clearance Bureau as defendants.
He is claiming $20 million for defamation of character and dignity in the banking sector, $89,6 million for loss of business and the subsequent collapse of some of his business units as a result of the said blacklisting.
According to the summons, on April 26 1999, Financial Clearance Bureau blacklisted Mr Ruvinga for "false bad debts of Z$382 245,15" with Barclays CHP and classified him without his knowledge.
Mr Ruvinga denies that there was a bad debt and if ever there was a debt, it was a bona fide debt that he covered long back.
On June 10 1999, FCB again blacklisted Mr Ruvinga labeling him an accused person in a case involving Barclays Bank.
Mr Ruvinga denies ever standing as an accused person in any criminal case involving Barclays Bank and that the information in the FCB database was false and possibly originating from the bank.
"The plaintiff denies that he was an accused person.
"He has never been accused in any criminal court in his lifetime," he said.
Mr Ruvinga said the blacklisting was not justified and it was highly defamatory and financially prejudicial to him as a businessman.
"There was no valid reason for the second defendant to blacklist the plaintiff because there was only a dispute about bona fide of the amounts claimed," read the summons.
On June 12 this year Mr Ruvinga, who used to be snubbed by banks for over 14 years without knowing the real cause, approached Stanbic Bank's Nelson Mandela branch in Harare and unsuccessfully tried to open a savings bank account. Stanbic referred Mr Ruvinga to Barclays Bank to be cleared first before he opened an account.
At Barclays, Mr Ruvinga said, he met a risk management officer who cleared him and as he did not owe any money. Mr Ruvinga said for the past 14 years he had been defamed and suffered financial prejudice as a result of the blacklisting.
"The plaintiff had set a target to achieve and become a billionaire by 2010 engaging local and offshore financial institutions, which is only possible with a clean banking record.
"That did not happen due to the unjustified blacklisting," the papers read.
The bank filed an application for exception to the claim arguing that Mr Ruvinga had not disclosed the cause of action in his papers.
Barclays indicated that the declaration was "vague and embarrassing" in that it is not clear whether plaintiff was suing the bank in delict or in contract.
FCB also filed an application for exception citing lack of cause of action.
Mr Ruvinga has since filed heads of argument in the case and an application for summary judgment, which is yet to be determined.
Mr Ignatius Ruvinga, who operates hunting safaris, farming and transport businesses, claims Barclays Bank supplied information to the Financial Clearance Bureau, which has offices in Milton Park, and a blacklisting report was compiled labeling him a bad debtor.
He argues that the blacklisting report was circulated to all banks in the country and he was snubbed by banks for almost 14 years resulting in the collapse of some of his business units.
Mr Ruvinga claims he even had a difficult time to open a bank account early this year with Stanbic where he was shown the blacklisting report.
He claims his dreams of becoming a billionaire by 2010 were shattered as a result of the bad relations between him and the banks.
The businessman man argues that he once had a legal dispute with Barclays Bank years back and the court ordered him to pay certain amounts of money and dismissed some of the claimed monies by the bank as unjustified.
Mr Ruvinga paid the money that the court ordered him to pay, but despite that development, he was publicised as a bad debtor and a local company, Financial Clearance Bureau, produced a damning report about him, which was circulated to all banks.
In the summons issued at the High Court on September 26 this year, Mr Ruvinga cited Barclays Bank of Zimbabwe and Financial Clearance Bureau as defendants.
He is claiming $20 million for defamation of character and dignity in the banking sector, $89,6 million for loss of business and the subsequent collapse of some of his business units as a result of the said blacklisting.
According to the summons, on April 26 1999, Financial Clearance Bureau blacklisted Mr Ruvinga for "false bad debts of Z$382 245,15" with Barclays CHP and classified him without his knowledge.
Mr Ruvinga denies that there was a bad debt and if ever there was a debt, it was a bona fide debt that he covered long back.
On June 10 1999, FCB again blacklisted Mr Ruvinga labeling him an accused person in a case involving Barclays Bank.
"The plaintiff denies that he was an accused person.
"He has never been accused in any criminal court in his lifetime," he said.
Mr Ruvinga said the blacklisting was not justified and it was highly defamatory and financially prejudicial to him as a businessman.
"There was no valid reason for the second defendant to blacklist the plaintiff because there was only a dispute about bona fide of the amounts claimed," read the summons.
On June 12 this year Mr Ruvinga, who used to be snubbed by banks for over 14 years without knowing the real cause, approached Stanbic Bank's Nelson Mandela branch in Harare and unsuccessfully tried to open a savings bank account. Stanbic referred Mr Ruvinga to Barclays Bank to be cleared first before he opened an account.
At Barclays, Mr Ruvinga said, he met a risk management officer who cleared him and as he did not owe any money. Mr Ruvinga said for the past 14 years he had been defamed and suffered financial prejudice as a result of the blacklisting.
"The plaintiff had set a target to achieve and become a billionaire by 2010 engaging local and offshore financial institutions, which is only possible with a clean banking record.
"That did not happen due to the unjustified blacklisting," the papers read.
The bank filed an application for exception to the claim arguing that Mr Ruvinga had not disclosed the cause of action in his papers.
Barclays indicated that the declaration was "vague and embarrassing" in that it is not clear whether plaintiff was suing the bank in delict or in contract.
FCB also filed an application for exception citing lack of cause of action.
Mr Ruvinga has since filed heads of argument in the case and an application for summary judgment, which is yet to be determined.
Source - herald
