The bank now says it can only exchange United States
dollars equivalent in local currency at the 2019 rate of 1 to 1.
Cabs argues that all US dollar accounts were converted to
local currency by law in 2019 and so it can only release Z$45 000.
A Harare magistrates court issued an order on November 3
last year, for the release of money held in the CABS account of Andrew Jubane
to Universal Transport (Pvt) Ltd, according to documents in possession of the
Herald.
But so far, the money has not been released raising fears
of possible contravention of the law by CABS, when it allegedly unfroze an
account belonging to Jubane who was under investigation for suspected fraud.
The man at the centre of the fraud was Marlven Chimutashu,
who swindled Universal Transport Pvt Limited of US$234 000 in a fuel deal.
At the time of his arrest Chimutashu had spent part of the
money settling his debts and buying gold at Fidelity Printers. After a fully
contested trial, Chimutashu was convicted and sentenced to an effective three
years in jail for fraud.
The court had initially sentenced him to six years in jail
but suspended one year on condition of good behaviour.
Of the remaining five years, two years were suspended on
condition he restitutes the company US$102 000 through the clerk of court at
Harare magistrates court on or before December 9 last year.
The court also ordered that the US$45 000 held in Andrew
Jubane’s account be released to Universal Transport with immediate effect.
Now the transport company found itself in a quagmire, as
the building society remained non-committal when the company’s legal counsel
reached out for responses.
Only now it seems to be jolted into action, when it said it
is investigating the matter. The company’s lawyer Mr Blessing Diza of Diza
Attorneys wrote to CABS on January 18 requesting it transfer the money as laid
down in the court order.
In its response, CABS said it was unable to refund the
money because of the monetary policy changes of 2019.
“We refer to your letter dated 18 January 2024. Kindly note
that the account Number 1003662641 was converted to Zimbabwe dollars during the
2019 monetary policy changes. Further, the account is dormant, and it had a
nill balance when it fell into dormancy. In light of the above we cannot remit
the funds as requested. We trust you will find this in order,” read CABS letter
dated January 31 2024.
In responding to CABS letter the company lawyer said money
amounting to US$45 000 in the account of Mr. Andrew Jubane became an exhibit in
criminal proceedings the moment the order to freeze the account was received by
yourselves.
“As you are aware every transaction processed by a
financial institution leaves an audit trail. To that end, we are kindly
requesting you to furnish us with an audit trail on how the exhibit was used,
when it was used and who the beneficiaries were.
“Further, kindly furnish us with the court order that
authorised the reactivation of the account to allow processing of those
transactions to enable us to subject these to an independent verification
process by an auditor,” read Mr Diza’s letter dated February 22.
Mr Diza followed up with another letter on March 12,
wherein he took the view that the response by CABS translated to contempt of
court as there is clear defiance of a competent court order.
He explained that the bank was not supposed to use funds
that were held as an exhibit on behalf of the court, reiterating that “our
request to you to release the funds you are withholding as you are opening
yourself to a possible suit for loss of business.”
To this end, Mr Diza advised the bank that his client was
now gravitating towards filing a complaint with the Reserve Bank of Zimbabwe
Supervision Department over the matter.
“Kindly share with us proof of payment of the funds into
our client’s account as soon as you receive this letter but in any event not
later than 15th March 2024.”
After receiving this letter, CABS on March 15, wrote back
to the company saying it was investigating the matter. “We are investigating
what transpired on the account, and we thank you for your understanding during
this process,” said Mr Hardlife Nharingo, CABS group legal and governance
executive.
“We have ascertained, however, that the account in question
converted to Zimbabwe dollars by operation of law in 2019. It is, and would
have been, impossible for us to transfer US$45 000 to yourselves, from the
account in question, post 2019.” CABS, further stated in its letter that
pending finalisation of its investigation, it can offer payment of Z$45 000 on
a no prejudice basis.
Herald
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