Harare – Prominent Zimbabwean cleric and founder of Prophetic Healing and Deliverance (PHD) Ministries, Prophet Walter Magaya, is embroiled in a high-stakes legal battle with Zimbabwe’s Consul General to Israel, Ambassador Ronny Levi Musan, over a disputed US$3 million debt.
The case, currently before the High Court, has taken a dramatic turn as Prophet Magaya has admitted that the initial agreement between him and Amb Musan involved an illegal transaction, violating Zimbabwe’s exchange control laws.
The legal wrangle, filed under case number HC 621/23, centres around a promissory note related to funds advanced to Prophet Magaya for the development of a mine. Amb Musan, represented by Advocate Tazorora Musarurwa, alleges that Magaya is now attempting to exploit legal technicalities to avoid repaying the substantial sum, which was provided as an investment.
Through his legal counsel, Advocate Garikai Sithole, Magaya’s defence hinges on the argument that the agreement contravened sections 4 and 11 of Zimbabwe’s exchange control regulations, rendering it unenforceable. He has proposed repaying the debt in local currency, a move vehemently opposed by Amb Musan, who seeks full repayment in US dollars.
During court proceedings presided over by Justice Maxwell Takuva, Magaya’s defence team introduced the illegality argument, prompting strong objections from Amb Musan’s legal team, who accused him of employing delaying tactics. Despite these objections, the court allowed both parties to present their arguments.
Magaya’s defence cited the precedent set in “Innscor v Dolphin Trading,” arguing that the court should not enforce unlawful agreements. However, Adv Musarurwa dismissed this comparison, asserting that the circumstances were entirely different.
Adv Musarurwa further warned that if the court were to accept Magaya’s argument, it would severely undermine investor confidence and send a damaging message to foreign investors. He argued that such a ruling would suggest that local businesses could exploit legal loopholes to defraud international partners, with the courts effectively enabling such conduct.
Amb Musan’s legal team has submitted a draft order demanding full repayment of the US$3 million, along with interest at 3 percent per month compounded monthly from 1 July 2022, until final settlement. The order also seeks a declaration of immovable property as executable to satisfy the debt.
Justice Takuva has reserved judgment in the matter to carefully consider the submissions made by both parties.
GetBucks alleges that Magaya has deliberately frustrated their efforts to recover the funds, claiming he possesses no assets. The legal battle stems from a previous High Court order issued last year against Magaya, his wife Tendai, and their company, Planet Africa (Private) Limited, mandating the payment of US$420,140.72, along with accrued interest, to GetBucks.
A writ of execution was subsequently issued, leading to the attachment of Planet Africa’s immovable property, a piece of land identified as the Remainder of Stand 166 of Prospect. However, GetBucks asserts that their attempts to execute the judgement have been thwarted by Magaya and his wife, who have allegedly engaged in acts of insolvency.
According to court documents, Planet Africa voluntarily opted for Corporate Rescue just days before the scheduled sale of the property, effectively obstructing the sale. GetBucks argues that, given the apparent lack of further assets belonging to Magaya and his wife, coupled with their alleged obstruction of execution attempts, the couple are insolvent and their estates should be liquidated.
GetBucks further alleges that Magaya and his wife are “generally unable to pay debts which are due and payable” and have “abused procedures to frustrate execution.” They also claim that entities linked to the applicant, including PHD Ministries and The Walter Magaya Family Trust, have been used to obstruct the genuine execution of court orders.
GetBucks has requested the court to grant a provisional order pending confirmation for the liquidation process to commence promptly, arguing that a “prima facie case has been made entitling the applicant” to such an order. Furthermore, GetBucks is seeking costs on a higher scale, alleging “classic abuse of proceedings to frustrate court orders and the creditor.”
The matter was scheduled for a virtual hearing on Wednesday.
The scheme, launched in 2016, promised to provide 1,000 residential stands at Danglasedale farm on the outskirts of Bulawayo. Magaya, through Planet Africa, sold the plots for US$4,000 each, promising to construct houses for the beneficiaries, who were primarily members of his church.
However, the construction of houses never materialised, and victims have stated that they had to sell family assets to raise the money for the residential stands. Progress on the project stalled in 2017, and Magaya’s followers were given various excuses for the abandonment of the project, including an “unconducive political environment” and the outbreak of the COVID-19 pandemic.
Victims have reported making numerous visits to the PHD Ministries offices in both Bulawayo and Harare, but to no avail. Some members have reportedly left the church in frustration, while others have since passed away without receiving their stands.
As these legal battles intensify, Prophet Magaya faces mounting pressure from multiple fronts. The outcome of these cases could have significant implications for his personal finances, the future of PHD Ministries, and his reputation within Zimbabwe and beyond.
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