HARARE | WestProp, a Victoria Falls Stock Exchange-listed counter, has reassured its shareholders and customers that their investment is secure following a recent High Court order that attached part of the company’s land over a disputed debt with Fairclot.
The WestProp’s Supreme Court appeal SC271/23 has since overturned the High Court ruling Number HH282/23.
A Deed of Grant from the Government of Zimbabwe legitimately conveyed land in Pomona to the real estate corporation.
The corporation has written to its shareholders, customers, and stakeholders to clarify its stance on the financial issue.
“The substance of the dispute that gave rise to the judgement is not to contest the title to our land, but rather a demand for payment in USD for civil works that were provided to Augur Investments, which was a previous shareholder and not even a directly related party to the company,” the letter reads.
Mrs Tatiana Aleshina-Ellis, WestProp’s interim chief executive officer, verified the letter’s delivery, adding that the “amount in dispute was in any event discharged in RTGs and settled in full in 2019, which at the time was equivalent to US$1 million.”
“The payment was made in local currency and in accordance with the law that was in effect at the time, which was clearly 1:1.”
“However, the amount in dispute is now before the Courts in respect of the interpretation, and or applicability of the Finance Act No. 2 of 2019,” she said.
Mrs Ellis contends that even if the company were not to succeed on appeal its obligation “is a USD debt sounding in money and payable in RTGs at the rate of exchange at the time of payment for which sufficient safeguards have been put in place to pay the amount that may be deemed to be due and also without affecting the delivery of our project to our clients”.
Mrs Ellis stated emphatically, “we want to reassure you that your investment with us remains secure and unaffected.” We shall follow the Supreme Court’s ultimate decision.”
Mrs. Ellis provided an update on Pomona’s progress. She stated that the main entry gate and road, which are now under construction, would be presented on June 27, 2023.
She stated that committed teams were working on road and storm water drain improvements.
Source | ZiMetro News