Zimbabwean banks plan to fight $100m Paynet lawsuit | Fin24
 
  • Cadre Cover

    The ANC is planning to launch a funeral policy scheme for members and supporters.

  • VBS Collapse

    Ramaphosa has acknowledged South Africans' impatience to see justice done.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Zimbabwean banks plan to fight $100m Paynet lawsuit

Aug 08 2019 09:43
Ray Ndlovu

Zimbabwean banks intend to fight a $100m lawsuit brought by Cambria Africa's units in the country following a dispute over payments, court filings show.

The Bankers Association of Zimbabwe, which represents the nation’s 21 lenders, “would defend the action,” the organisation’s legal representatives said in the court documents, filed last week. The association had been served with a summons on July 24 giving them 10 days to respond to claims from Cambria’s Paynet and Payserv units in Zimbabwe.

The battle between London-based Cambria and the association reached boiling point in June when Paynet, one of the country’s largest providers of bulk payments such as salaries, suspended services to banks, citing unpaid bills.

It forced the lenders to switch to smaller providers or resort to manually managing payments, hindering the flow of money in the cash-starved $31 billion economy, already grappling with rampant inflation and mass unemployment.

Cambria on Tuesday said banks had closed their Paynet gateway, preventing compliant lenders from transacting with them and hindering the orderly flow of payments. The company is betting a partnership with Ecocash, the mobile-money unit of Econet Wireless will help it recover some of the lost revenue from the dispute with the banks.

“If not successful, Cambria will need to significantly downsize its operations in Zimbabwe, as it continues to pursue legal recourse through the courts of Zimbabwe,” the company said, adding it may also approach courts in neighbouring South Africa, or the UK.

NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What's your view on deep sea mining?

Previous results · Suggest a vote

Loading...