dyton mupawaenda
Fidelis Munyoro-Chief Court Reporter
AFTER losing its claim for US$19,5 million damages against the Reserve Bank of Zimbabwe for what it describes as gross negligence and breach of statutory duty following the collapse of Interfin Bank, financial concern, AL Shams Global BVI Ltd, has now turned to the Supreme Court in a bid to overturn a recent High Court decision.
Registered in the British Virgin Islands, AL Shams is owned by business mogul Mr Jayesh Shah and operates in Zimbabwe as a foreign entity.
Mr Shah sued the RBZ at the High Court following the collapse of Interfin Bank, arguing that the central bank, being aware that Interfin was operating with a capital deficit of more than US$38 million and having failed to satisfy the central bank’s conditions for a licence, did not ensure that it was adequately capitalised and fit to operate.
But Judge President Justice Mary Zimba-Dube threw out the suit noting that AL Shams had, in its declaration, made no direct allegation of bad faith against the central bank, and it was required to plead bad faith coupled with allegations of negligence.
Unhappy with the decision, Mr Shah has now taken the matter up the appeal ladder seeking to quash the High Court decision.
He wants the Supreme Court to order RBZ to pay damages of US$19,5 million resulting from the alleged RBZ negligent failure to ensure that Interfin was adequately capitalised as required by the Reserve Bank of Zimbabwe Act and the Banking Act.
In addition, the businessman wants to be paid interest on the US$19,5 million at the rate of 20 percent a year from May 15, 2017 to the date of payment in full.
In his grounds of appeal, Mr Shah argues that by failing to take corrective measures, the central bank was in breach of its statutory obligations, hence it breached the provisions of the Banking Act which obliged it to act.
Mr Shah, who claimed that his company only discovered that Interfin had been operating with a capital deficit when it instituted proceedings against the liquidator of the bank, also argues that the RBZ should have foreseen this and that it’s alleged breach of statutory duty would culminate in direct loss to his company.
Online Reporter