Published: 12 hours ago

Former Reserve Bank of Zimbabwe (RBZ) Governor Gideon Gono has suffered a setback in his bid to avoid trial in a US$3 million debt case, after the High Court dismissed his latest application for absolution.

Gono, in his personal capacity and as director of his companies, including Lunar Chickens, is accused of failing to settle a loan owed to ASP Marketing CC, a South Africa-based firm.

According to court papers, Lunar Chickens entered into a verbal agreement in 2009 to purchase 2 209.72 metric tons of maize at US$395 per metric ton. The maize was delivered to Gono's New Donnington Farm in December 2009 and May 2010, but payments fell far short of the agreed amount. Despite demands, Lunar Chickens paid only US$140 000 in 2011 and 2012, leaving an outstanding debt of approximately US$2.2 million.

In 2023, the High Court dismissed Gono's earlier attempt to block the trial, after he argued that the agreement was illegal under Exchange Control Regulations, claiming he never would have approved such a transaction while serving as RBZ Governor. Gono's team also argued that ASP Marketing was only entitled to shares in Lunar Chickens rather than cash payment.

The Supreme Court upheld the High Court's decision in 2025, ruling that the case must proceed on its merits.

When the trial resumed in July 2025, Gono attempted to halt proceedings through an application for absolution from the instance, arguing that ASP Marketing had not provided sufficient evidence of liability or the amount owed.

Justice Mafusire rejected the application, calling it "incredibly ridiculous" and noting that it appeared to be a tactic to stall the trial. "There is no question that the application has no merit. If true, that is an abuse of the court process," the judge ruled.

The dismissal of Gono's bid means that the full trial will proceed, allowing ASP Marketing to present its evidence and pursue the claim for repayment of the outstanding debt.
- NewZimbabwe

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