Published: 31 March 2014

Trust Bank was on Friday thrown a life line after the High Court ruled that an order placing it under liquidation was defective and lacked any legal force.

The bank was placed under provisional liquidation last December after the Reserve Bank of Zimbabwe cancelled its operating licence on charges of abusing depositors' funds and violation of the provisions of the Banking Act.

But Justice Martin Mafusire reversed the decision throwing a lifeline to the bank and depositors who were against the central bank's move.

The judge ruled against the RBZ saying it placed the bank under provisional liquidation on the strength of the order that was obtained without informing Trust Bank and yet the law requires that the application by which the order is sought should be served on the other party as well.

After the court ruling, the bank's lawyer Advocate Thabani Mpofu immediately filed a claim for declaratory order seeking a stay of any further proceedings from the RBZ.

The bank is also now seeking an order authorising the central bank to facilitate the recapitalisation drive which the financial institution has embarked upon.

A South African company, Mining, Oil and Gas Services is waiting in the wings with plans to transform Trust Bank into an energy bank through an investment of $800 million.
- herald

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