METBANK Limited says it has paid back the US$20 million
debt in Treasury Bills (TBs) to the National Social Security Authority (NSSA).
The bank’s corporate secretary and legal counsel Mr Kiitu
Zawanda yesterday said the TBs and interest, together with legal fees attached
to them, were paid back “in full on the 24th of July 2019”. His remarks follow
publication of stories (NSSA seeks to attach Metbank property, The Herald
August 7, 2019) that claimed NSSA had
not been paid back the money and had instituted court proceedings to recover
the money.
Said Mr Zawanda: “It is false that Metbank has not repaid
US$20 million in TBs as ruled by the High Court and it is equally false that a
writ to attach property has been issued against the bank.”
He said in 2017, it entered into an agreement with NSSA
where in exchange for an agreed consideration, NSSA gave the bank TBs with a
face value of US$20 million for use for its third party borrowings.
“The facility held by Metbank was a performing asset and
when it came to an end in December 2017, Metbank paid all the attendant fees
and returned the TBs.
“It (facility) performed so well that as a result the
facility was renewed on the 18th of December 2017 for a further six months
through a term sheet which had a clause that it would be replaced by a
subsequent agreement, which would govern the rights and obligations of the
parties in respect of the TBs.
“The facility was extended on the basis of a further
consideration which Metbank duly paid,” said Mr Zawanda.
It added that after the six-month period specified in the
term sheet, a dispute arose over the release of the TBs, with Metbank refusing
to return the TBs because NSSA had failed to avail the agreement which was
meant to replace the term sheet as agreed between the parties. The dispute was
despite the fact that the facility was performing and Metbank had honoured all
its obligations to NSSA.
“Whilst the parties were still in negotiations regarding
the dispute, NSSA went to court seeking the return of the TBs on the basis of
the term sheet. Metbank opposed the relief sought on the grounds that the term
sheet did not constitute an agreement, but was merely a precursor meant to
precede a substantive agreement between the parties.
“For Metbank, the issue was that the TBs should only be
released after an agreement had been entered into and only in terms of what
that agreement would have provided for.
“Both NSSA and Metbank were made aware of the judgment on
22nd of July 2019. Prior to receiving this judgment, Metbank of its own
volition, wrote to NSSA on the 19th of July offering to transfer the TBs to
them.
“NSSA indicated that they needed time to consult with their
lawyers and after doing so, they finally accepted a full transfer of the TBs
back to them on the 24th of July 2019,” said Mr Zawanda.
He added that a perusal of Justice Nicholas Mathonsi’s
judgment shows that he largely dealt with what constituted an agreement, “and
all the other issues brought to light in social media were peripheral issues
which were a meniscal (sic) part of the judgment”. Herald
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