The High Court has ordered Metbank to return to NSSA US$20 million worth of Treasury Bills (TBs) it has been holding as security.
reports suggest that the bank secured the TBs in 2017 as security for some thrid party borrowings. Metbank, however, failed to return the bills in 2018 as per the contract.
NSSA engaged Metbank in an endeavour to persuade the bank to return the TBs but negotiations failed, prompting the authority to approach the High Court over the matter.
Metbank, through its lawyer, advocate Fadzayi Mahere, contended that there was no agreement between the two parties. Mahere also argued that NSSA was demanding the bills before they were due.
This was despite advocate Tawanda Zhuwarara, representing NSSA argued that that the 2017 agreement signed between NSSA and Metbank was binding and enforceable security lending agreement under which Metbank was required to return the TBs.
High Court judge, Nicholas Mathonsi, agreed with NSSA’s plea and then ordered the Metbank pay to pay NSSA a penalty fee of 5% per annum of $20 million compounded daily from 18 June 2018 to date of return of the treasury bills.
More: NewZWire Live