WestProp says legal pickle will not affect shareholders’ investment

HARARE – Victoria Falls Stock Exchange listed counter WestProp has reassured its shareholders and customers of the safety of their investment following a recent High Court judgement that attached part of the company’s land over a contested debt with Fairclot.

The High Court order Number HH282/23 has since been set aside through a Supreme Court appeal SC271/23 filed by the WestProp.

Land at Pomona was validly transferred to the real estate company by virtue of a Deed of Grant from the Government of Zimbabwe.

The company has written to its shareholders, clients and stakeholders clarifying its position with regards the financial dispute.

“The substance of the dispute which gave rise to the judgement is not to contest the title to our land, but rather a demand for payment in USD for civil works that were provided to Augur Investments which was a previous shareholder and not even a directly related party to the company,” reads the letter.

WestProp acting chief executive officer Mrs Tatiana Aleshina-Ellis confirmed dispatch of the letter adding that the “amount in dispute was in any event discharged in RTGs and settled in full in 2019 which at the rate of exchange at the time was equivalent to USS$1 million.”

“The payment was made in local currency and according to the law applicable at the time which was clearly 1:1.

“However, the amount in dispute is now before the Courts in respect of the interpretation, and or applicability of the Finance Act No. 2 of 2019,” she said.

Mrs Ellis contends that even if the company were not to succeed on appeal its obligation “is a USD debt sounding in money and payable in RTGs at the rate of exchange at the time of payment for which sufficient safeguards have been put in place to pay the amount that may be deemed to be due and also without affecting the delivery of our project to our clients”.

In a passionate assurance Mrs Ellis said “we want to reassure you that your investment with us remains secure and unaffected. We will abide by the final determination of the Supreme Court”.

Mrs Ellis gave a run-down of progress at Pomona. She said main entrance gate and driveway currently under construction will be unveiled on 27 June 2023.

She said dedicated teams were on the ground dealing with road and storm water drain construction.