Published: 09 May 2014

Harare businessman Jayesh Shah is claiming more than $4 million from a British bank for the economic loss his company suffered after the latter falsely classified the funds held in his account as arising from money laundering activities.

Shah says HSBC Bank in September 2006 reported to the Serious Organised Crime Agency his request to transfer almost $28 million to his other account in France as "suspicious".

The allegations of money laundering in the UK later the following year adversely affected the $22 million-loan deal his company, Al Shams Global BVI Limited, had struck with the Reserve Bank of Zimbabwe.

According to the loan agreement Al Shams Global BVI Limited, a company registered in the UK, would avail $22 million to the RBZ on a revolving basis.

In return, Al Shams Global BVI Limited would get an arrangement fee of 18% and a disbursement fee of 1% flat on the loan amount.

This would have earned Shah's company a profit of $4 180 000. After the deal was concluded, rumours spread in Harare that Shah was suspected of money laundering in the UK.

RBZ became suspicious and cancelled the deal.
- herald

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