Zimbabwe: Former Central Bank Governor Gono’s Bid to Avoid Trial in U.S.$3 Million Debt Case Hits a Snag
A bid by the former Reserve Bank of Zimbabwe (RBZ) Governor, Gideon Gono, to avoid trial in a US$3 million debt case has hit a snag after the High Court overturned the latest application for absolution.
Gono, in his personal capacity and as director of his associate companies, among them Lunar Chickens was dragged to the court for failing to settle a US$3 million loan owed to a South Africa-based firm, ASP Marketing CC.
The South Africa-based firm ASP Marketing, through Chambati, Mataka & Makonese Attorneys, said sometime in 2009, Lunar Chickens entered into an agreement with the company for the sale of 2 209, 72 metric tons of maize at US$395 per metric ton.
The material terms of the verbal agreement were that the South African-based firm would deliver the maize at Gideon Gono’s New Donnington Farm which was duly done in December 2009 and May 2010, before Gono made the payment.
However, Gono’s Lunar Chickens failed to pay for the maize delivered as per verbal agreement despite demand, instead opting to pay just US$140,000 in 2011 and 2012, despite the outstanding amount claimed for delivery of both maize and soya beans is US$2,2 million.
In 2023, the High Court dismissed the former exchequer’s court application for dismissal of the claim on technical grounds, after he sought to block a full trial on the matter citing a number of irregularities in the ASP Marketing CC application, after he submitted that ASP Marketing was only due to receive shares in Lunar Chickens for the equivalent amount of the delivered maize and Soya beans.
The ex-central bank boss said he would not at any material time enter into such an agreement as he argued that the agreement between him and the South African Based firm was illegal as payment of such a hefty amount in foreign currency outside the country required approval of the Reserve Bank of Zimbabwe(RBZ) in line with Exchange Control Regulations of which he was the RBZ Governor and Chief at the time, which Exchange Control approval he alleged was never obtained first from the RBZ, which he was in charge of at the time.
Gono and his associate companies appealed against the High Court judgment to the Supreme Court and the Supreme Court in 2025, went on to also dismiss with costs Gono’s appeal against the 2023 High Court ruling by Justice Mafusire which had dismissed his preliminary arguments, insisting that the matter presented by ASP Marketing CC must be heard on the merits as the preliminary points by Gono and his associate companies had no merit.
When the trial commenced again in July 2025 at the High Court before Justice Mafusire, ASP Marketing CC represented by Advocate Fadzayi Mahere instructed by Chambati, Mataka and Makonese Attorneys At Law testified and led evidence but Gono through his lawyers Advocate Sylvester Hashiti instructed by Tendai Biti Law to avoid the trial continuing filed an application for absolution for the instance at the end of the plaintiff’s case through which they argued that the plaintiff had not led any evidence on any aspect of the plaintiff’s claim and that they had not produced any document to prove liability or quantum.
However, Gono’s application of absolution from instance was dismissed with costs by Justice Mafusire stating in his judgment that, “It is perhaps because the application for absolution from the instance was incredibly ridiculous that counsel for the plaintiff objected to its being made in the first place” and that, “There is no question that the application for absolution from the instance has no merit. It must be a strategy by the defendants to stall the progress of the trial. If true, that is an abuse of the court process”, leaving the former RBZ official in the open, with a full trial having to see the light of day.
By New Zimbabwe.
