High Court orders Walter Magaya to repay US$3 million, dismisses exchange control defence

Walter Magaya

HARARE — In a significant legal setback for Prophetic Healing and Deliverance (PHD) leader Walter Magaya, the High Court has ordered him to repay US$3 million to an Israeli investor, rejecting his bid to rely on Zimbabwe’s exchange control rules to void the debt.

The judgment in case HC 621/23 dismissed Magaya’s attempt to convert the obligation into local currency and to characterise the loan as unlawful under exchange control regulations. The funds were advanced through Ambassador Ronny Levi Musan, who acted for the Israeli investor in a mining investment transaction.

Court reasoning and interest award

Delivering the ruling, Justice Maxwell Takuva found that Magaya had not proved the alleged illegality of the transaction. The court held that the Exchange Control Regulations apply only to Zimbabwean residents and that Magaya was estopped from claiming illegality because he had prescribed the payment method and benefited from it. The judgment emphasised public‑policy concerns, noting that the law is “averse to unjust enrichment.”

The High Court ordered Magaya to repay the US$3,000,000 plus 3% monthly compounded interest from July 2022. The court further authorised execution against Magaya’s immovable property to satisfy the judgment debt.

A passage of the judgment reads:

“The defendant (Magaya) failed to prove illegality and has not shown any violation of Zimbabwean law by the plaintiff. Exchange Control Regulations apply only to Zimbabwean residents. The defendant is estopped from claiming illegality as he prescribed the payment method and benefited from it. Public Policy is averse to unjust enrichment, preventing the defendant from profiting unjustly from US$3000000.00. In the result, it is ordered that the preliminary point raised be and is hereby dismissed for lack of merit.”

Legal arguments and counsel

Magaya’s legal team, led by Advocate Garikai Sithole, argued that the debt was tainted by exchange control breaches and therefore unenforceable in foreign currency. The court rejected that line of defence, siding instead with Advocate Tazorora Musarurwa, who warned that allowing such technical defences would deter foreign investment and undermine contractual certainty.

Implications and next steps

The ruling exposes Magaya to immediate enforcement action, including possible sale of immovable assets to satisfy the judgment. Legal observers say the decision reinforces the principle that contractual terms agreed by parties, including payment currency and method, will generally be upheld unless clear illegality is established.

Magaya may seek leave to appeal the High Court decision; any further challenge would be heard by the Supreme Court. Meanwhile, creditors and foreign investors will likely view the judgment as a precedent supporting the enforcement of cross‑border commercial agreements in Zimbabwean courts.

Walter Magaya repay US$3 million 2026