Mayhem looms in banks

IN a landmark ruling likely to send shock waves in the banking sector, the Supreme Court on Friday ordered Standard Chartered bank to pay back a client’s funds which it surrendered to the Reserve Bank of Zimbabwe (RBZ) following central bank governor Gideon Gono’s directive six-years ago.

This could come as a relief to a lot of companies and could open floodgates from companies that lost millions of dollars when they woke up to find their bank accounts empty after the RBZ took a raid on them at the behest of Gono.

As a result of that directive scores of commercial banks had refused to pay their customers arguing it was the responsibility of the central bank as they simply carried out its directive.

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