HARARE – The Supreme Court has ordered former state Vice President Joice Mujuru and her company to settle a US$226,000 debt owed to a local couple since 2014.

This follows a successful appeal lodged at the apex court by Sabrina and Tonny Sarpo after the High Court had issued a provisional order confirming Zimbabwe’s former number two and her Ruzirun Investments had successfully cleared their debt obligation when they paid the couple in RTGS.

This prompted the lodging of an appeal by the Sarpos who argued that parties entered into a consent order denominated in US dollars which at the time was legal tender.

They argued that payment was supposed to be at the prevailing interbank rate with the US dollar.

In their appeal, they submitted that the court “a quo erred at law and grossly misdirected itself in finding that the Deed of Settlement entered into by the parties on 20 May 2019 and consent order granted on 20th May 2018 fell within the ambit of the provisions of S.I. 33 of 2019 notwithstanding the deed of settlement and consent order having been entered and granted respectively after the effective date of S.I. 33 of 2019”.

Judges of appeal Chinembiri Bhunu, Felistus Chatukuta and Mwayera concurred.

The judges said the argument by Mujuru that the deed of settlement and the consent order were merely based on the agreement of sale executed in 2014 therefore lacks merit.

“The court a quo therefore erred when it held that the order by consent did not create any new liabilities but merely pronounced on the existing liabilities of the respondents.

“The respondents were therefore required to discharge their indebtedness by converting the United States dollar judgment to RTGS dollars at the prevailing interbank rate.

“Payment made by the respondents at the one-to-one rate therefore did not discharge their indebtedness to the appellants.

“It merely constituted part payment with the balance remaining due and payable.

“We therefore find that this appeal has merit and ought to succeed,” they ruled.

The court then ordered that the appeal be allowed with costs.

The judgment of the High Court was set aside before Mujuru and her company were slapped with costs.

Sabrina and Tonny sold farming machinery to Mujuru’s company in a sale sealed 25 July 2014.

Mujuru acted as surety.

Her company then defaulted in making payments prompting court action.

Peppy Motors issued summons against Mujuru and her company demanding US$226,000.

At the pre-trial conference, the parties agreed to settle the matter.

They then entered into a deed of settlement on 20 May 2019.

An order by consent denominated in United States dollars was issued on the same date as the deed of settlement that is on 20 May 2019, for the payment of US$226,000.

Mujuru then made first payment on 5 July 2019 through a bank transfer of RTGS$76,000.

After four days, the appellants wrote a letter, through their legal practitioners, that the judgment debt had to be paid at the interbank rate.

Mujuru objected arguing that the obligation to pay the amount had arisen before the promulgation of SI 33 of 2019.

She also argued that payment was therefore supposed to be at the parity rate of 1:1.

However, the Sarpos ordered the Sheriff to execute the judgment.

On 18 September 2019, the Sheriff attached Mujuru’s he first combine harvester.

On 16 October 2019, Mujuru and her company made a payment of ZW$140,000 directly into the Sheriffs account.

The Sarpos again wrote her that there was still an outstanding balance of RTGS$7,423,413.30.

But Mujuru argued that payment of ZWL$470,282.50 made covered the judgment debt in full.

On 11 February 2020, the Sheriff attached her three tractors.

Mujuru then approached the High Court seeking a stay of execution of the judgment in HC2954/18.

They sought as a final order a declarator that the total amount they paid had extinguished their indebtedness and the release of the property attached by the third respondent.

The application was duly granted prompting the Sarpos to appeal.