High Court Orders Magaya To Repay US$3 Million To Israeli Business Partner

The High Court has ordered Walter Magaya, leader of Prophetic Healing and Deliverance Ministries (PHD Ministries), to repay US$3 million to an Israeli business partner, dismissing his argument that Zimbabwe’s exchange control laws made the debt invalid.

The case (HC 621/23) stems from a financial arrangement in which a group of Israeli investors, facilitated by Zimbabwe’s Consul General in Israel, Ambassador Ronny Levi Musan, advanced funds to Magaya for a proposed mining project.

Magaya argued that the agreement breached sections 4 and 11 of Zimbabwe’s exchange control regulations and was therefore unenforceable.

He also suggested repaying the money in local currency rather than US dollars — a proposal strongly opposed by Ambassador Musan.

During proceedings before Justice Maxwell Takuva, Magaya was represented by Advocate Garikai Sithole, while Ambassador Musan was represented by Advocate Tazorora Musarurwa.

Magaya’s legal team maintained that the transaction was unlawful under Zimbabwean law.

However, Musan’s lawyers argued that the funds were a legitimate foreign investment and that exchange control regulations did not apply in this instance, as the capital was provided by foreign nationals from outside the country.

Advocate Musarurwa warned that upholding Magaya’s argument could deter foreign investors and set a precedent allowing local businesses to avoid their obligations on technical grounds.

The Israeli investor is seeking full repayment of the US$3 million, plus interest at 3% per month, compounded monthly, from 1 July 2022 until the debt is settled. The court order also allows for immovable property to be attached if necessary to recover the funds.

Separately, Magaya is facing four counts of rape involving adult congregants from Harare and Chegutu, relating to allegations dating from 2016 to 2023, which he denies.

This week, he also named fellow preacher Emmanuel Makandiwa in his ongoing rape trial, claiming that the prosecutor handling the case is acting on behalf of Makandiwa’s church, the United Family International Church (UFIC).

More: Nehanda Radio