Prophet Magaya faces estate liquidation over outstanding debt of US$420 000

HARARE – GetBucks Microfinance Bank Limited has initiated legal proceedings in the High Court of Zimbabwe, seeking to liquidate the personal estates of Prophetic Healing and Deliverance Ministries leader Walter Magaya and his wife, Tendai, over an outstanding debt of US$420,140.72.

The move comes after the bank’s alleged inability to recover the funds following a High Court judgement issued in October 2024.

The application, filed in the High Court of Zimbabwe’s Commercial Division, seeks an order for the liquidation of their estates under Section 6 of the Insolvency Act (Chapter 6:07).

The bank, as the applicant, contends that the Magayas are unable to pay their debts and have committed acts of insolvency.

This follows a High Court judgement issued on October 9, 2024, which ordered Walter Magaya, Tendai Magaya, and their company, Planet Africa (Private) Limited, to pay GetBucks Microfinance Bank Limited a sum of US$420,140.72, along with 10% monthly interest from September 11, 2024, until full payment.

According to court documents, efforts to execute the judgment against the Magayas and Planet Africa (Private) Limited have been unsuccessful.

Movable assets attached at their residential address were released after an interpleader claim by the Trustees of The Walter Magaya Family Trust.

Similarly, movables at Planet Africa’s address were claimed by PHD Ministries, a religious entity founded by Walter Magaya.

The bank states that the principal debtor’s immovable property, a piece of land measuring 3.2323 hectares in Salisbury, held under Deed of Transfer number 4076/2018, was declared specially executable and slated for sale on March 28, 2025.

The sale was, however, reportedly frustrated when Planet Africa (Private) Limited voluntarily entered corporate rescue proceedings shortly before the scheduled date.

GetBucks Microfinance Bank Limited argues that with no further known assets belonging to the Magayas and all execution avenues exhausted or frustrated, they are insolvent.

The bank claims the Magayas have no known assets and their liabilities exceed their assets. They also assert that statutory demands for payment were served but neglected.

A nulla bona return from the Sheriff, indicating no attachable assets, has also been issued against the Magayas.

In its application, GetBucks Microfinance Bank Limited nominated Noreen Chikaka of Reign Management Consultancy (Private) Limited to be appointed as the liquidator of the Magayas’ estates, citing her experience in the field.

The bank further asserts that liquidation would be advantageous to it and any other creditors, preventing further accrual of debt and compelling the Magayas to disclose information about their financial affairs.

The bank is seeking a provisional order for liquidation, arguing that it has satisfied the requirements for such an application and that the Magayas’ conduct suggests deliberate evasion of obligations and potential hiding of assets.

The application also suggests that the Magayas may attempt to leave the country to evade the law, thus requesting the surrender of their passports.

“The 1 (Walter) and 2 (Tendai) Respondent may want to leave the country to evade the law since they have no assets and it is in the interest of justice that the court should order the two to surrender their passports.

“They do not need the passports anyway since they presented themselves as insolvent people,” reads part of the application.

“Liquidation is in the interest of the creditors as it curbs accrual of farther debts by the 1” and 2 Respondent to the prejudice of the current creditors.

“Liquidation proceedings will also compel the 1 and 2 respondent to furnish the liquidator with information relating to their financial affairs which they have kept in secrecy to prejudice the Applicant.”

The matter is set to be heard in the High Court on Wednesday.