The Reserve Bank of Zimbabwe (RBZ) has said it is unaware of the sale of the People’s Own Savings Bank (POSB) to foreign investors.
This follows reports that President Emmerson Mnangagwa has ordered the sale of POSB to Hebrew Investment Group.
In a statement issued on Thursday, February 20, RBZ Governor John Mushayavanhu clarified that no such transaction has been processed or approved by the central bank. Below is the full statement from Mushayavanhu:
<blockquote>
FALSE CLAIMS ABOUT THE PURPORTED SALE OF POSB
The Reserve Bank of Zimbabwe is concerned about a false story circulating on social media to the effect that POSB could have been sold to some foreign investors.
The public, and particularly POSB depositors, are advised that any purported sale of a banking business would require the authority of The Registrar of Banks and Exchange Control among other approvals.
The Reserve Bank categorically states that these claims are false and has not received an application from any investor for the purchase of POSB, neither has it received any correspondence from any Zimbabwean Government authority, including His Excellency The President.
If there had been any directive for the sale, it would have had to be addressed to the Reserve Bank as the approving authority.
We can categorically confirm that the Reserve Bank never received any such directive, neither has it processed any application from the named investors.
Accordingly, any reference to the purported sale of POSB cannot be true as the sale cannot be consummated without Reserve Bank approval.
These false claims should, therefore, be dismissed with the contempt they deserve.
</blockquote>

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The Reserve Bank of Zimbabwe says it doesn't know about the sale of POSB to foreign investors. Reports said President Mnangagwa ordered the sale to Hebrew Investment Group. RBZ Governor John Mushayavanhu clarified that no such sale has been approved. The RBZ says the claims are false and no application for the sale has been received. The sale of a bank would need approval from the Registrar of Banks and Exchange Control. Any directive for sale would have to be approved by the Reserve Bank. The RBZ says the claims should be ignored because they are not true.

RBZ Dismisses Reports Of POSB Sale To Foreign Investors

A group of Israeli businessmen claims to have been swindled out of US$3 million by Walter Magaya, the leader of the Prophetic Healing and Deliverance Ministries (PHD) church in Zimbabwe. The businessmen have warned that if they do not receive justice from the local courts, they will take the matter to international courts. The case is currently before the High Court of Zimbabwe, <a href="https://masvingomirror.com/israelis-ready-to-take-magaya-to-international-courts/?fbclid=IwAR1UMzl3kXKdT4bd1M0BR640GUYEmzy6w351L2l8OGZINNBzSYjFJ-IxGYY">The Mirror</a> reported.
The businessmen allege that Magaya received the money through Ronny Levi Musan, the Consul General of Zimbabwe in Israel appointed by President Emmerson Mnangagwa. They express shock at the scam and state that it is unheard of in Israel for a man of God to deceive people in the name of God. They said:
<blockquote>
We hope that we will get justice in the courts in Zimbabwe; justice that will give other foreign investor confidence that their money is safe and justice that will act as deterrence to would be swindlers.
If we do not receive justice, we have all the power and financial capability to sue Magaya in international courts. We will not give up on our honour and on our money in anyway.
Magaya is lying to investors hiding behind the President’s pictures. It’s time for people to realise that not everyone who takes a picture with the President has the integrity of the President.
We love the President, respect and appreciate him
</blockquote>
The statement released by their lawyer in Israel further alleges that Magaya received $3 million from Israeli businessmen to start a gold mining project together in Zimbabwe. However, after he received the money, he disappeared and didn’t do what he promised in the agreement. There hasn’t been any significant mining activity at the mine, and they haven’t obtained the necessary permits to operate. The businessmen are not only planning to take Magaya to court but are also requesting his arrest.
They claim that they were introduced to Zimbabwe through the efforts of Musan, whom they praised for his excellent work. They believe that without Musan, they would have never considered investing in Zimbabwe. Magaya became involved in the situation because of his longstanding acquaintance with the Ambassador. He introduced the investors to his church, hotel, and his plan to develop a gold mine with a community participation program.
The investors claim that Magaya attempted to give $500,000 of the money back to the Ambassador, but the Ambassador refused it and informed the investors about this unusual offer. 
According to the agreement, Magaya was supposed to hold 57% of the shares in the project, while the Israelis would have 43%. Magaya personally guaranteed that all the funds would be used to develop the mine. However, the statement accuses Magaya of shamelessly using his church, God’s name, and the trust placed in him by the Ambassador to deceive the investors and take their money.
They say Magaya was supposed to use his properties, including a hotel, as security, but he changed the terms after receiving the money. The statement also alleges that Magaya did not comply with the requirements for transferring the mine’s rights to the investors. Once he got what he wanted, his lawyers stopped communicating with the investors, according to the statement.
Musan stated that he was promoting Zimbabwe in Israel, presenting it as the promised land for investment and economic prosperity. He expressed concern that dishonest businessmen were damaging the country’s reputation and hindering its chances of attracting further investment.
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