ZIMBABWE'S government has found itself at the centre of a heated dispute after Time Bank accused authorities of infringing on its patent and copyrights, the Zimbabwe Independent can report.
This week, Time Bank alleged that government officials had misappropriated intellectual property in its multi-billion-dollar proposal.
The bank is now escalating the matter to influential global organisations, including the International Monetary Fund (IMF).
Time Bank re-entered the market about a year ago, following a period of financial instability that led to a wave of bank failures between 2004 and 2005.
The bank had submitted a proposal aimed at addressing Zimbabwe’s deepening financial crisis.
Central to the plan was a strategy to raise funds for compensating affected groups, including pensioners who lost up to US$1 billion when Zimbabwe adopted a multi-currency system in 2009.
The US$38 billion offer also sought to compensate approximately 4 500 white former commercial farmers displaced during violent land seizures starting in 2000.
The government has already agreed to a US$3,5 billion deal to compensate these farmers for improvements made on their farms.
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Time Bank proposed bringing in a syndicate of lenders to support the initiative.
However, confidential documents obtained by the Independent suggest that in December, the government established a sub-committee to implement a land tenure programme bearing striking similarities to Time Bank’s original proposal.
Time Bank claims it was blind-sided by subsequent revelations that the government intends to unlock US$15 billion by selling urban and agricultural land to finance the compensation plan — an idea it alleges was lifted directly from its proposal.
The bank maintains that the similarities between the two proposals are undeniable, with the government’s version mirroring key aspects of its original submission.
Two months ago, authorities confirmed to the Independent that they were still reviewing Time Bank’s proposal. However, the bank has since labelled the government’s term sheet as a “pirate proposal”.
In a 13-page document addressed to Finance, Economic Development, and Investment Promotion minister Mthuli Ncube, Time Bank argued that the government’s plan “pirated” key elements of its proposal, particularly the sale of urban land to generate funds for compensation.
The disputed proposal has yet to receive parliamentary endorsement, leaving Time Bank’s shareholders in a precarious position.
Sources indicate that the bank’s proposal is protected under patent and copyright laws, making the government’s actions a direct violation of intellectual property rights.
Time Bank has presented authorities with several options to resolve the matter amicably or face international lawsuits in pursuit of compensation for its intellectual property.
“Under the pirated proposal, the sub-committee further advised that four banks…had been appointed by government to manage the programme of selling such land, including giving mortgage loans to people who want to buy either urban land or agricultural land,” Time Bank stated in the document.
“Time Bank was not appointed as one of such preferred banks. It became very clear that the government has violated the patent and copyrights of Time Bank regarding the sale of urban land for purposes of paying such compensations to previous farm owners, repaying government debt and mentioned purposes.”
Experts warn that if Time Bank’s allegations are substantiated, they could raise serious concerns about the government’s commitment to property rights, an issue frequently cited as a key factor behind capital flight and declining investor confidence.
Allegations of intellectual property theft, they argue, could further erode trust in Zimbabwe’s institutions and raise questions about the rule of law
“Apart from the above violation of Time Bank’s patent and copyrights, there is also a public confusion on the two proposals, and it is an issue which also requires your attention and resolution,” the bank stated.
“There are people, including writers of news articles…who have been confusing Time Bank’s proposal and the pirated proposal.
“Some have been criticising Time Bank’s proposal thinking that the pirated proposal is part of Time Bank’s proposal, yet the proposals are different and miles apart in terms of substance and technicalities,” it further alleged.
Time Bank has warned that if an agreement is not reached, its foreign partners may escalate the dispute internationally, potentially embarrassing Zimbabwe, which is already perceived as a global outlier in financial dealings.
“Under Option C, if government decides to neither approve Time Bank’s proposal nor negotiate an amicable settlement of the compensation as an out of court settlement, then in that event, Time Bank’s foreign affiliate company, which has certain rights of the patent and copyrights will be left with no option excerpt to file an international lawsuit in a foreign country against the Government of Zimbabwe, and let an independent court to decide on such legal case on piracy,” the bank said.
“In addition, Time Bank’s foreign shareholder will notify the International Monetary Fund, previous farm owners, creditors of the Zimbabwean government, among other people, so that they can make informed decisions on whether it is proper for the government to pirate Time Bank’s proposal and use the financial proceeds from such piracy to pay itself and them.”
While the IMF is not among the international creditors owed more than US$21 billion by Zimbabwe, it remains a significant global lender whose opinions influence major financial decisions.
The IMF is also a key player in ongoing negotiations, led by the African Development Bank, to help Zimbabwe develop a debt repayment plan for frustrated creditors, including the Paris Club and the World Bank.
“The previous farm owners and other creditors of the government among others should also decide whether it is proper for them to accept to be paid from money arising from the violation of Time Bank’s property rights" the bank said.
"Of late, Time Bank and its shareholders have been facing unnecessary pressures from various authorities, including being denied by such authorities what Time Bank and its shareholders are legally entitled to, and such pressures appear intended to force Time Bank to give up its proposal and pursue its patent."
The Time Bank offer has had twists and turns. In November, a group of veterans of Zimbabwe’s 1970s liberation war approached the bank, demanding a share of the funds.
Finance ministry officials did not respond to the Independent's questions.
