By George Maponga
Businessman Mr Philip Chiyangwa, who was on the verge of having his commercial stand in Masvingo’s Zimre Park repossessed by Masvingo City Council, won a reprieve after the High Court granted him a declaratory order confirming him as the legal owner of the stand and ordered a new agreement to be drafted.
Chiyangwa took council to court after it decided in May last year to repossess the 1,9 hectare stand earmarked for a hotel by the businessman on the basis that he had failed to develop it within 18 months from 2008 as laid down in the agreement of sale.
Council also recommended at the time that the stand should be valued since Mr Chiyangwa was entitled to 10 percent of the purchase price under the agreement of sale. Council was planning to approach the Reserve Bank of Zimbabwe for assistance in determining the value of the $150 billion paid by Mr Chiyangwa in 2008.
Mr Chiyangwa bought the stand in 2008 through his company, Pinnacle Property Holdings, for $150 billion and was supposed to develop it within 18 months from the date of purchase. But he did not.
Mayor Collins Maboke yesterday said the High Court had quashed council’s decision to repossess the stand.
“We are bound by the decision of the courts and our earlier move to repossess the stand was reversed. We lost the case at the High Court on a technicality, meaning Mr Chiyangwa remains the legal owner of the stand,” said Mr Maboke, while refusing to disclose the nature of the technicality.
“The High Court ordered us to sign a new agreement with him (Mr Chiyangwa) and we are bound by that.” The Herald