Walter Magaya is embroiled in a legal dispute over an alleged $3 million debt owed to Zimbabwe’s Consul General to Israel, Ambassador Ronny Levi Musan.
The controversy has intensified following Magaya’s admission to conducting an unauthorized foreign currency transaction, a move that breaches Zimbabwe’s exchange control regulations.
Magaya’s legal team argues that the debt agreement is invalid under Sections 4 and 11 of the country’s financial laws, which govern foreign currency dealings. They maintain that the contract cannot be enforced due to its illegality. While Magaya has offered to settle the debt using Zimbabwean dollars, Ambassador Musan is demanding repayment in U.S. dollars.
The court is now tasked with the difficult decision of whether to enforce a potentially unlawful contract or to uphold the legal framework, which could affect investor sentiment in Zimbabwe. The presiding judge has reserved judgment to allow time for thorough consideration of the arguments.
Adding to Magaya’s woes, GetBucks Microfinance has filed a separate lawsuit against him over an outstanding debt of $420,140. The financial institution accuses him of obstructing repayment efforts and claims he has no assets in his name. As a result, GetBucks is pushing to have Magaya’s estate liquidated.
These legal troubles follow previous accusations that Magaya misled members of his congregation in a failed housing scheme. The initiative, which promised to deliver 1,000 residential plots, reportedly collapsed without delivering on its promises, with critics alleging misuse of funds for personal benefit.
With multiple court cases looming, both Magaya’s public image and financial stability appear to be under serious threat.
