High Court reserves judgment in RTGS challenge

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CHENGETAI ZVAUYA

High Court judge Justice Happias Zhou has reserved judgment in the matter in which an architectural firm is seeking to be paid money deposited into Central African Building Society (CABS) in US dollars as opposed to bond notes or Real Time Gross Settlement
(RTGS) dollars.

Penelope Douglas Stone and Richard Harold Stuart Beattie trading as Stone / Beattie Studio deposited US$142 000 into their CABS bank account in 2016 and have written to CABS demanding that no withdrawal or deposit should be made into their account.

Stone/ Beattie Studio also demanded that its account be ring fenced so that no transactions can be made on the account.

The architectural company also said it was not going to accept money in bond notes or RTGS.

Tendai  Biti representing Stone/Beattie  company  said  the firm was not prepared to accept any  money that is not  in US dollars since the  bond notes  and  RTGS were  valueless currency.

“My clients deposited US dollars into their account and are now expecting to be paid the money in the same currency, and not any other form. We don’t accept the correspondences from CABS that it can pay them in bond notes or RTGS,” Biti said.

Advocate  Lewis Uriri, representing  CABS   Bank and  the Reserve Bank  of Zimbabwe, argued  that the  bond  notes  and  RTGS were legal tender  and accepted  form of payment in doing  business transactions in Zimbabwe.

“The bond note is a legal tender and can be paid to anyone. The Statutory Instrument  133 of 2019  has not been challenged by  anyone to dismiss the  bond note or RTGS , so this is the  money  that  can be paid  back,” Uriri said.

Uriri also said the firm had not deposited hard cash into their account but had made electronic transfer payment and should not expect to be paid in forex.