Crimes and Courts Correspondent
The Constitutional Court (ConCourt) of Zimbabwe has dismissed an application from Fairclot Investments, a local construction company, which challenged the payment of US$4,800,000 owed to them by Augur Investments in local currency. The court’s decision comes after a lengthy legal battle surrounding an arbitral award issued in 2015.
Background of the Dispute
Fairclot Investments had initially obtained an arbitral award against Augur Investments, which was registered as a High Court order in June 2019. However, this award was affected by Statutory Instrument 33 of 2019, which mandated that all assets and liabilities previously expressed in US dollars be converted to RTGS dollars at a one-to-one rate.
The Supreme Court had previously ruled that the registration of the arbitral award did not alter its status as an asset or liability subject to the provisions of the statutory instrument. Consequently, the court determined that the debt was payable at the rate of one US dollar to one RTGS dollar, a decision that Fairclot Investments contested, claiming it violated their rights to protection under the law and a fair hearing.
Court’s Ruling
In their application to the ConCourt, Fairclot sought to overturn the Supreme Court’s judgment, arguing that it infringed upon their constitutional rights. However, the ConCourt judges, including Justice Paddington Garwe, Rita Makarau, and Annie Gowora, found that Fairclot failed to demonstrate any violation of rights. They characterized the application as a disguised appeal against the Supreme Court’s decision, which was deemed a non-constitutional matter.
The judges stated,
“Having considered the facts of this matter as a whole, it appears to me that no violation of the applicant’s rights has been demonstrated.” They concluded that it would not be in the interests of justice to grant Fairclot leave for direct access to the ConCourt.
Conclusion
The dismissal of Fairclot Investments’ application reinforces the Supreme Court’s ruling regarding the payment of the arbitral award in RTGS dollars. This case highlights ongoing legal complexities surrounding currency conversion and the enforcement of arbitral awards in Zimbabwe, particularly in the context of changing economic regulations.
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