Question 1
The matter would be taken up through the magistrate’s court because it is the court that has
initial legal jurisdiction to deal with criminal cases. However, the limit of the court is trying
fraud cases that are $3 million and below even though this can change anytime. If John stole
more than $3 million, the case will be tried in the High court instead.
Question 2
The laws that affect businesses in Zimbabwe are:
i. The companies and other business entities act and this covers how businesses in Zimbabwe
are constituted, incorporated, registered and managed.
ii. They also have to adhere to the law of contracts since all businesses enter into contracts
with different stakeholders.
iii. They also have to conform to the regulations of the tax regulating body of the country and
in Zimbabwe, that would be ZIMRA, by remitting taxes like PAYE.
iv. Businesses also have to adhere to the labour laws in Zimbabwe by following the
guidelines that are set in their line of business. An example is giving employee the reuired
leave days as per industry practice.
v. They also have to follow the health and safety guidelines in their industry of work.
Businesses have to adapt to the economic, social, political and legal environment where they
operate. If new laws are introduced and the business does not adapt, this may be costly when
they have to pay penalties or when they are subject to lawsuits for non-compliance. Politics
also affects the economy of a country and measures might be put in place where businesses
have to adapt.
Question 3
The decision taken by management is unlawful. This is because the judicial system in
Zimbabwe is about justice and fairness and giving employees compensation that has less
value after all the services that they would have given the company.
This was argued in the case of Gift Bob David Samanyau and 38 others v Fleximail Private
Limited HH 108-11. On appeal to the supreme court in 2014, the court agreed that the
payment of damages in lieu of reinstatement in foreign currency was fair considering that the
employees had worked for the company for long. The court concluded that there was need for
equity and social justice when paying out damages to employees.
In the case of Central African Batteries v John Mhangu SC 79/10, the plaintiff appealed at the
Supreme court and it was agreed that he had to be paid in foreign currency at the Reserve
bank applicable exchange rate for the Zim $ 692 118 which had been awarded to him.
In the case of Harare Nzuma and three others v HUNYANI Paper and Packaging Private
Limited case number SC 137/11[5], the court held that the first ruling of paying in Zimbabwe
dollars had been overruled and back pay had to be paid in foreign currency at an agreed rate.
There is also the case of Madhatter Mining Company v Tapfuma SC 51/2014 where
Gwaunza JA acknowledged that there was no fairness and justice in determining damages
suffered in the Zimbabwean Dollar error when the currency had changed and was now United
States dollars. She particularly emphasized on the unrealistic fact that payment in
Zimbabwean Dollars would not give due value to the employee and that a change in currency
can not wipe out a debt like that. Rather she asserted that a formula had to be found that
would give the employee what was due to them and also make the employer pay.
Another case that supports that this is unlawful is that of Rushezha and Ors v Dera CCZ
24/17, In this case, the court held that courts can not hold judgements that are brutum
fulmen.If the judgement is in a currency that is no longer in use, it is brutum fulmen and
therefore can not hold. Since the currency can no longer be used, then the judgement will be a
brutum fulmen.
Question 4
The source of law is subsidiary legislation. It is a statutory instrument. A statutory instrument
has regulations made by a minister and in this case the amendments are made to the Income
Tax Act. The statutory instrument also does not go beyond the Powers of the Income Tax
Act.