Conrad Dube/Shakeman Mugari
ZIMBABWE Allied Banking Group (ZABG)’s problems continue to mount with revelations that a second bank filed court papers on Wednesday, suing the RBZ for its i
nclusion in the merged bank.
Trust Bank filed an urgent application midweek arguing that its inclusion in ZABG was illegal and should be reversed. The Trust Bank case was heard at the High Court yesterday and will continue on Tuesday next week.
This brings to two the number of banks that are suing ZABG and the central bank after Royal Bank filed papers on Monday demanding that it be removed from under the ZABG umbrella.
Royal’s case was also supposed to be heard at the High Court yesterday but was postponed to Monday after the respondents – ZABG, RBZ and the curator Robert McIndoe – submitted their opposing papers late.
McIndoe submitted his affidavit a few minutes before the matter was due for hearing in chambers.
In their application, Royal’s major shareholders, Jeffrey Mzwimbi and Durajadi Simba, have sought a court interdict against RBZ, ZABG and McIndoe using the premises, motor vehicles and other assets and placing the business, assets or any interest of Royal under the control of ZABG.
They argue that it is illegal to transfer customers of Royal to ZABG. They are also challenging public announcements made by the central bank two weeks ago that Royal has been amalgamated into ZABG or merged with any bank to form ZABG.
Royal further objects that the RBZ and the curators had
valued its assets at $17,3 billion, which was their price at purchase.
“This is a gross misrepresentation and undervaluation of the assets of the third respondent (Royal),” Royal contends. “It will be apparent that the assets of the third respondent are worth in excess of $60 billion.”
They are also arguing that the respondents were selective in applying the in duplum rule to suit their agenda.
Mzwimbi and Simba said while the curator was applying the rule to amounts owed to Royal, they have not applied the same rule to amounts owed to the RBZ by Royal.