Mathew Masinge, Court Reporter
Harare City Council is contesting a recent arbitral award ordering them to settle a US$468 855 debt owed to Furbank Trading.
The city fathers were last December ordered to pay the amount but is preferring to make the payment in local currency on a one-to-one to the United States Dollar.
The local authority has now approached the High Court to have the arbitral award set aside in contravention of Statutory Instrument 33 of 2019 which placed the America Dollar at par with the RTGS.
On behalf of the council, Town Clerk, Hosiah Chisango has strongly contested how Furbak Trading’s claim to arbitration was handled.
He said the award was contrary to public policy.
“Applicant is aggrieved by the findings and conclusions of the arbitrator.
“I am averting that the instant award offends public policy,” reads Chisango’s affidavit.
Chisango further claims the amount in the award puts the authority at a disadvantage.
“In the award, he made the payment of RTGS equivalent sum of US$468 855 at the prevailing interbank exchange rate.
“Such an award was in violation of S.I 33-2019 Amendment of Reserve Bank of Zimbabwe Act and Issue of RTGS Dollars Regulations,” he said.
He said the award was inflated to a figure more than what parties had agreed as a likely outcome from arbitration.
The matter is yet to be set down for hearing.