Govt's USD to Zim Dollar Conversion Was Illegal - High Court Ruling
The High Court of Zimbabwe has ruled that laws used to convert US dollar balances into Zimbabwean dollars were unconstitutional to the extent that they violated property rights.
In a ruling delivered on 15 February 2023, High Court judge Justice Joseph Mafusire ordered CABS to pay US$142 000 to the applicants that it had converted to real-time gross settlement (RTGS) during currency reforms in 2019.
The applicants were local businessman Richard Harold Stuart Beattie and his wife Penelope Douglas Stone and were represented by Tererai Mafukidze instructed by Tendai Biti.
The respondents were CABS represented by Thembinkosi Magwaliba, the Reserve Bank of Zimbabwe represented by Lewis Uriri and Finance and Economic Minister Mthuli Ncube represented by D Jaricha from the Attorney-General’s Office. Ruled Justice Mafusire:
The conversion of the amount of US$142 000 standing to the credit of the applicants savings account No 1005428905 with the first respondent (Cabs) as at November 28, 2016 violated section 71 of the Constitution.
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Justice Mafusire ruled that CABS should pay the applicants the sum of US$142 000 together with interest of 5% per annum from November 28 2016 to the date of payment.
Posting on Twitter after the ruling, Biti said they were proud to have won another “landmark” ruling. He said:
The government of Zimbabwe caused chaos and severe economic loss to millions of Zimbabweans when it demonetised the US dollar and introduced the valueless Zim dollar.
We are pleased to announce that the High Court has declared unconstitutional the appropriation of US$ savings in our own case.
Since 2019, we have acted for Richard Beattie and Penny Stone in their action to recover US$142 000 unlawfully converted by a bank.
We are proud and privileged to have won yet another landmark.
