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Dr Kombo Moyana

Fidelis Munyoro Harare Bureau
THE Reserve Bank of Zimbabwe is embroiled in a legal battle with the firm of its former governor, Kombo Moyana, over the sale of a block of flats in Avondale, Harare, seven years ago.The central bank took Moyana’s company, Hundred Weight Investments (Pvt) Ltd, to the High Court to compel it to transfer a block of flats the RBZ bought from the company through Vericham Real Estate Private Limited.

The property was sold to the RBZ for $200,000 before Zimbabwe introduced the multi-currency regime early 2009.

According to the agreement thrashed out between Vericham and the RBZ, the bank would pay $100,000 and another equivalent of $100,000 in local currency. The local currency equivalent to $60,000 was paid leaving an outstanding balance of $40,000.

Now the central bank wants the property transferred into its name but Moyana denies that he authorised the sale of his property to the RBZ, insisting that Vericham misrepresented his position to the central bank and fraudulently sold his property.

The civil trial was set for hearing before Justice Erica Nderere this week, but was postponed because Moyana’s wife, who is supposed to give evidence in the case, is in the United Kingdom.

In its claim, the RBZ stated that it paid the purchase price on the date of sale by way of a bank transfer into the Vericham’s account.

The central bank, which is being represented by Harare lawyer Tawanda Chitapi, further stated that when Vericham made its representation, it explicitly showed that it was authorised by Hundred Weight Investment to enter into an agreement of sale as an agent of the company.

After the conclusion of the sale, the RBZ said Vericham still acting as an agent of Hundred Weight Investment, arranged for and signed the declaration by seller and power of attorney in readiness for transfer of the property and additionally was making provision for tax on the capital gains.

Despite a demand for transfer of the property, both defendants – Hundred Weight and Vericham – refused in breach of the contract, insists the RBZ.

Through his lawyer Obert Daniel Mawadze, Moyana contends that at no time did his company mandate Vericham to be its agent for the sale of the immovable property and so Hundred Weight never sold the property to the RBZ. There was no agreement of sale mandated by Hundred Weight’s directors.

Mawadze stated that the agreement of sale referred to in the RBZ claim was a fraud as his client never signed or authorised the signing of the document. He also denied receiving any payment of the purchase price from Vericham.