US$35 million legal battles continue to haunt RBZ

Published: 4 hours ago

A long-running legal dispute involving the closure of Interfin Merchant Bank in 2012 continues to weigh on the Reserve Bank of Zimbabwe (RBZ), more than a decade after the collapse of the lender.

The case was brought by Al Shams Global BVI, a firm controlled by tycoon Jayesh Shah, which sued the central bank in 2023, alleging gross negligence and breach of statutory duty linked to the bank's supervision of the failed institution.

According to the RBZ's 2025 annual report, the dispute centres on claims arising from the collapse of Interfin Merchant Bank, which was shut down during Zimbabwe's banking sector crisis.

Al Shams Global is seeking damages of about US$19.5 million plus interest, arguing that the RBZ bears responsibility for the bank's failure.

"The High Court ruled in favour of the Reserve Bank. However, Al Shams Global BVI appealed to the Supreme Court, which referred the matter back to the High Court," the report noted.

As of December 31, 2025, the matter had not yet been re-enrolled before the High Court.

The report shows that the RBZ is facing claims exceeding US$35 million in total from various litigants, including companies, investors and former employees tied to legacy financial disputes.

In a separate but related matter, Al Shams Global also challenged the RBZ over funds held in a gold-related account, after the central bank requested proof of the source of funds.

That dispute was later resolved in April 2026 when the Commercial Court ruled against the RBZ's actions, with Justice Joseph Mafusire finding that the central bank had acted unlawfully, irrationally and in bad faith in freezing the company's funds.

In another case, Al Shams Building Materials Trading Company sought about US$16 million through arbitration, alleging breach of a settlement agreement with the central bank. The RBZ maintained it had fulfilled its obligations, and the arbitrator ruled in its favour.

The annual report also records smaller disputes involving seized vehicles and compensation claims linked to alleged fire damage at RBZ premises, all of which remain unresolved or under litigation.

The cases highlight the lingering legal and financial fallout from Zimbabwe's earlier banking sector crisis, which saw multiple institutions collapse in the mid-2000s.

The RBZ has not yet publicly commented on the ongoing litigation.
- The Independent

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