Controversial preacher and businessman, Prophet Walter Magaya, founder of Prophetic Healing and Deliverance (PHD) Ministries, faces the loss of a significant landholding after failing to repay a substantial debt.
The Harare High Court last week ordered the sale of 3,232.3 hectares of land owned by Magaya’s company, Planet Africa, to settle a US$420,140.72 debt owed to Getbucks Microfinance Bank Limited.
The ruling, delivered by Justice Jacob Mafusire, follows Magaya’s failure to meet the repayment schedule agreed upon in an acknowledgment of debt signed on 8 March 2024.
The court documents detail a payment plan that stipulated installments of US$30,000, US$40,000, US$50,000, US$60,000, and US$70,000 due on the 7th of April, May, June, July, and August 2024, respectively, with a final payment of US$166,718.33 due by September 7th, 2024. All payments were missed.
The land, located adjacent to Magaya’s prominent Yadah Hotel, was pledged as surety for the loan. The court order explicitly details the execution of this surety.
“Whereupon after reading documents filed of record and hearing counsel, it is ordered that judgment for provisional sentence in the sum of US$420 140.72 is hereby granted in favour of the plaintiff against the defendants jointly and severally, the one paying the others to be absolved, together with interest thereon at the rate of 10% per month from 11 September 2024 to the date of payment in full,” Justice Mafusire’s ruling stated.
The ruling further confirmed the special executability of the land and a power of attorney granted to Atherstone & Cook legal practitioners to facilitate the sale.
“The first defendant’s immovable property known as certain piece of land situate in the district of Salisbury called the Remainder of of Stand 166 of Prospect measuring 3, 2323 hectares held under deed of transfer No. 4076/2018 and dated 27 July 2018 is hereby declared specially executable,” the judge ruled.
“The irrevocable special power of attorney issued by the first defendant to the plaintiff on 8 March 2024 authorising Atherstone & Cook legal practitioners and any of their partners to sell and transfer the property above is hereby confirmed and declared specially executable.”
Magaya and his wife, Tendai, acted as surety and co-principal debtors, signing unlimited personal guarantees on February 29, 2024, to secure the loan. The court also ordered Magaya and his company to pay Getbucks’ legal costs and collection commission, amounting to US$42,041. The summons filed by Getbucks clearly outlined the default and the bank’s subsequent action.
“In terms of the repayment conditions of the acknowledgment of debt, the debt ought to have been fully settled by the 7th of September 2024 and therefore overdue,” the summons read.
“Defendants having acknowledged indebtedness and defaulted payment, Plaintiff is left with no option but to institute the present proceedings for the recovery of the current outstanding amount together with interest, collection commission, and costs as aforesaid.”
This legal action comes as a stark contrast to recent news surrounding Magaya’s significant financial contributions to Zimbabwean sports. Just two months prior, Magaya’s Heart Group of companies unveiled a US$320,000 sponsorship package for the Women’s Super League, a gesture praised by First Lady Auxillia Mnangagwa.
The sponsorship included kits and equipment for all 16 league teams, along with a knockout competition. Magaya, a known supporter of various sporting initiatives, including Yadah FC, the national football and rugby teams, pledged continued support for Zimbabwean sports development. The juxtaposition of these generous donations with the court-ordered sale of his land highlights the complexities of Magaya’s financial dealings.
