BoZ ordered to pay US$139m for breach of agreement

THE Bank of Zambia (BoZ) has been ordered by the High Court to pay A L Shams Building Materials and Company Limited a judgement sum of over US$139 million owed as at June 30, 2020.

Lusaka High Court Judge Edward Musona granted BoZ and the State leave to appeal against the judgement but on condition that the central bank deposit into court 30 percent of the judgement sum being US$139, 191, 386.74 within a period during which an appeal may be lodged.

In a judgement delivered yesterday, Justice Musona was satisfied that BoZ breached the agreement of July18, 2014 made between it and A L Shams Building Materials and Mr Jayesh Shah.

He ordered that the agreement be specifically performed by the central bank by way of liquidating the judgement debt.

Justice Musona said BoZ had abused its immunity against execution, which should end because it is not a good governance.

“That the history of litigation in this case dates back to the year 1998. It is now 24 years old in courts. It is BoZ which has unduly and unjustly perpetuated this case. This dispute has been in a back and forth movement, from High Court to Supreme Court, this is sad. Litigation must have an end. Twenty-four years in court is too long,” he said.

Facts are that in a case commenced in 1998, A L Shams and Mr Shah sued BoZ as liquidator of First Merchant Bank Zambia Ltd (in liquidation) and the Attorney General as principal of the Drug Enforcement Commission (DEC) for wrongful seizure of the plaintiff’s money on January 16,1998.

In a judgement delivered on October 12, 1999, it was found that the bank’s books of accounts of Merchant Bank Ltd showed that the said bank was still holding the balance of US$ 1, 013, 973.91 in their suspense account belonging to the plaintiffs (A L Shams).

The seized funds did not form part of the liquidation process, thus, BoZ, as the liquidator was directed to pay the plaintiffs the said money.

On July 28, 2011, the High Court ruled under cause no. 1998/HP/2097 wherein it ordered that the assets and means of BoZ as the judgement debtor be examined in relation and order of the court.