HomeLocalRBZ Faces Court Over US$42 000 Rent Arrears

RBZ Faces Court Over US$42 000 Rent Arrears

A BULAWAYO based company has taken the Reserve Bank of Zimbabwe (RBZ) to the High Court seeking its eviction from its premises for failing to pay rentals amounting to over US$42 000.

The RBZ, according to court papers filed by Trebo and Khays (Pvt) Ltd, has not paid any rentals for the premises since February 2009 thereby accruing arrears amounting to US$42 435.

Zimbabwe abandoned the local currency and adopted the multi-currency system in February last year, the same time that the RBZ started failing to pay rentals.

Trebo and Khays (Pvt), through its lawyers Cheda & Partners, also want the RBZ to pay holdover damages before it is evicted from the rented premises in the Belmont industrial area.

The premises house offices, a warehouse, a storage space for RBZ machinery and equipment, and a garage for RBZ vehicles.

Court papers filed in December 2009 show that the Bulawayo company is seeking an order forcing the RBZ to pay the debt and for the cancellation of a lease agreement entered into by the two parties. It also wants the central bank evicted from the rented premises.

“Plaintiff’s claims against defendant are for: an order for the payment of US$42 435 due on account of rent arrear as at 30th September 2009 together with interest at the prescribed rate from the date of summons to date of full payment,” read the court papers.

“An order for the defendant to pay holdover damages equivalent to the rentals due at US$172,50 per day from 1st October 2009 to date of eviction and an order confirming the cancellation of the agreement of lease on account of the defendant’s failure to pay rentals on time or at all.”

The company also wants the RBZ to be evicted within 48 hours once an eviction order has been granted.

“Plaintiff also claims an order for defendants’ eviction from No 8. Empress Road, Belmont, Bulawayo within 48 hours of service of this order, failing which the Deputy Sheriff, Bulawayo, be and hereby ordered to evict the defendant and all those claiming through it,” read the court papers.

The RBZ, which is represented in the matter by Chitapi & Associates, has applied for an interdict to stop its eviction from the rented premises.

Since the suspension of the Zimbabwean dollar the RBZ has found it difficult to operate as most of its costs were borne through the printing of the worthless local currency under its quasi-fiscal activities.

The central bank has also failed to pay its workers on time due to financial constraints.


Loughty Dube

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