Zimbabwe: RBZ sue Profert Zimbabwe for failing to reverse transaction of 1million dollars

Reserve Bank of Zimbabwe (RBZ) has sued a local company, Profert Zimbabwe (Pvt) Ltd for failing to reverse a transaction of $1, 112, 45 54 after a foreign liability deal was reversed, according to a news report by New Zimbabwe .com

The company had transferred a total of $3 619 288 but later realized that the deal would not be approved and demanded reversal.

Court papers show that the central bank only reversed $2, 506, 836, 95 but withheld the balance despite demand by Profert Zimbabwe.

Profert Zimbabwe's business involves importing goods into the country.

According to court papers, in 2019 plaintiff had two outstanding foreign obligations to Profert (Pty) Ltd, a South African company, in the amounts of USD2 506 836 95 and USD1 112 451 54 totaling USD3 619 288 49.

The plaintiff through its banking agent, Stanbic Bank, approached RBZ with a view of registering its foreign liability and legacy debt to Profert (Pty) Ltd in accordance with the Exchange Control Directive to Authorised Dealers issued by RBZ Exchange Control Division on 22 February 2019 and blocked funds framework as set out in RBZ Exchange Control Circular 08 dated July 24, 2019.

In order to be eligible to utilize the blocked funds, the plaintiff was asked to transfer the outstanding foreign liability amounts in RTGS to RBZ.

Accordingly, on July 1, 2019, Profert Zimbabwe (Pvt) Ltd authorized the transfer of $3 619 288 49 from its account with Stanbic Bank to RBZ.

The amount was transferred on July 10, 2019.

Subsequently, due to a change in RBZ block funds requirements, the complainant discovered that liabilities in relation to bills of entry prior to January 1 would not be approved by the central bank.

Accordingly, by letter dated October 16, 2019, Profert Zimbabwe requested the immediate return from RBZ of $2 506 836 95.

This amount represented the plaintiff's liabilities to Profert (Pty) Ltd relating to goods imported prior to January 1, 2016.