Story by Peter Chivhima
The High Court of Zimbabwe has ordered Walter Magaya to repay US$3 million to his Israeli business partner after dismissing a preliminary objection challenging the validity of the debt.
In a judgment delivered on Thursday, High Court judge Maxwell Takuva ruled that Magaya had failed to prove any illegality in the transaction and had not demonstrated any violation of Zimbabwean law by the plaintiff, Ambassador Ronny Musani Levi.
Magaya had argued that Zimbabwe’s exchange control regulations rendered the debt invalid. However, the court rejected this claim, finding that exchange control regulations apply only to Zimbabwean residents and could not be used to invalidate the agreement in question.
Justice Takuva said legal precedent supported the plaintiff’s case, citing the Hattingh decision as authority reinforcing the enforceability of the agreement and undermining Magaya’s defence.
The court further held that Magaya was estopped from claiming illegality, noting that he had prescribed the method of payment and directly benefited from the transaction.
Having structured and received the funds under agreed terms, he could not later challenge the arrangement, the court ruled.
Justice Takuva also reiterated that public policy is opposed to unjust enrichment.
The ruling clears the way for enforcement of the US$3 million claim against Magaya, adding to the legal challenges facing the PHD church leader.
