Maravi

(TALKZIMBABWE) Gvt blocks auction of assets in SA

Gvt blocks auction of assets in SA
By: Our reporter
Posted: Wednesday, July 28, 2010 7:10 am

GOVERNMENT has successfully challenged the auctioning of several of its properties in Cape Town and Johannesburg by a German bank, arguing the properties are protected by diplomatic immunity.

A legal team from Harare approached the North Gauteng High Court and managed to get an order barring KFW Bankengruppe from selling off the properties. The German bank wants to sell off Zimbabwe's assets to recoup money it said it lent to government in the late 1990’s.

But an urgent court application by Zimbabwe to prevent the sale was approved. The auctions were scheduled for July 27 and August 10 2010.

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The government, through the Zimbabwe Iron and Steel Corporation Ltd (Zisco), entered into the loan agreement with the German bank in January 1998.

Repayment of the loan was then meant to be done in 16 instalments starting from May 2000. But after only four payments, the last being in 2002, Zisco stopped paying as it was hit by western-imposed sanctions.

A Right Wing South African group called AfriForum is locked in a similar court battle with the Zimbabwean government.

The organisation is representing a group of white Zimbabwean farmers who were displaced when government acquired farms under the land reform exercise. They are demanding the sale of other South African properties owned by Zimbabwe.

Justice Minister Patrick Chinamasa has in the past dismissed AfriForum's demands saying the land reform exercise in Zimbabwe was necessary and perfectly legal.

Labels: AFRIFORUM, LAND REFORM, SANCTIONS

posted by MrK @ 4:59 PM