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Bank of Zambia (BoZ) has petitioned the Lusaka High Court to dismiss a case in which the Bank of Nevis International Limited, a shareholder in Investrust Bank Plc, is suing government over the compulsory liquidation of Investrust Bank.
Bank of Nevis International Limited, which holds a 24.8 percent stake in Investrust Bank, had applied for a judicial review, arguing that the government’s actions infringed on their rights and denied them due process and natural justice.
In its lawsuit, the Bank of Nevis International Limited seeks an order compelling the Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, to establish an ad hoc tribunal to review the liquidation decision.
Read more: Bank of Zambia defends liquidation of Investrust Bank, calls decision lawful, necessary
The legal action, represented by Chibesakunda & Co. Advocates, listed the Minister of Finance, the Attorney-General, and the Bank of Zambia as respondents.
However, Owen Mooka, acting Assistant Director of Problem Bank Management and Deposit Protection at BoZ, has called for the dismissal of the case, citing a “multiplicity of actions.”
In an affidavit supporting the Central Bank’s summons to dismiss the matter, Mooka explained that the Bank of Nevis International Limited initially applied for judicial review under Cause No. 2024/HP/1121.
This application sought to challenge the government’s failure to form a tribunal and to halt BoZ’s decision to liquidate and sell the assets of Investrust Bank.
According to Mooka, when the application was set for hearing on August 22, 2024, it was adjourned to September 4.
On August 29, BoZ filed an affidavit opposing the application for judicial review and a stay order.
However, on September 2, 2024, Bank of Nevis International Limited filed a notice of discontinuance, effectively terminating the initial proceedings without court leave.
Mooka noted that the Bank of Nevis International Limited filed a new but identical application on the same day, under a different cause number, seeking the same reliefs.
He argued that this constitutes a duplication of legal actions.
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