Magaya Faces Property Seizure Over US$3 Million Debt

By Loyd Matare

The High Court of Zimbabwe has dealt a major blow to controversial clergyman Walter Magaya, ordering him to repay US$3 million to an Israeli businessman and dismissing his attempt to use local exchange control laws to avoid the debt.

Magaya had sought to settle the loan in local currency rather than US dollars, arguing that exchange control regulations protected him.

But Justice Maxwell Takuva rejected the argument, stating:

“The defendant (Magaya) failed to prove illegality and has not shown any violation of Zimbabwean law by the plaintiff.

“Exchange Control Regulations apply only to Zimbabwean residents.”

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Magaya’s lawyer, Advocate Garikai Sithole, claimed the debt was unlawful, but the court sided with Advocate Tazorora Musarurwa, who cautioned that accepting such technicalities could scare off foreign investors.

The court ordered repayment of the full US$3 million with 3% monthly compounded interest from July 2022 and authorised the seizure of Magaya’s immovable property if he fails to pay.

“The defendant is estopped from claiming illegality as he prescribed the payment method and benefited from it.

“Public policy is averse to unjust enrichment, preventing the defendant from profiting unjustly from US$3,000,000.00,” the judgement added.