Michael J. Prest’s BONI wins key court rulings in Zambia Investrust dispute

Bank of Nevis International Limited, the financial institution led by Michael J. Prest, has secured a major courtroom victory in Zambia after the High Court dismissed two applications filed by the Bank of Zambia in a dispute tied to the liquidation of Investrust Bank Plc.

The rulings by Justice Charles Zulu keep BONI’s challenge alive and allow the investor to continue pursuing judicial review over decisions that followed Investrust’s collapse and the sale of its assets. The case centers on BONI’s 24.8 percent stake in Investrust, which the company says was effectively wiped out during the liquidation process.

BONI acquired the stake in 2021 through a licensed broker on the Lusaka Securities Exchange, according to the report. The investment was made through regulated market channels, but BONI was later told that formal recognition of its shareholding required approval from the Bank of Zambia because Investrust was a regulated financial institution.

The company submitted documentation for regulatory review, but the issue remained unresolved for years. BONI said the delay left it unable to secure board representation, exercise voting rights or take part in governance decisions, while still carrying the economic exposure of a shareholder.

A turning point came in January 2024 when the Bank of Zambia formally said it did not recognize BONI as a shareholder. Investrust was later placed into liquidation, and BONI says the move erased the value of its shares without refunding the capital it had invested.

One of the High Court rulings dealt with the central bank’s attempt to set aside BONI’s notice of discontinuance in an earlier case. Justice Zulu rejected that challenge, finding that local court rules provided a valid mechanism for discontinuing the proceedings. A second ruling rejected the argument that BONI’s fresh judicial review was an abuse of process, allowing the matter to proceed and awarding costs against the Bank of Zambia.

The dispute has also drawn attention because of what it may signal about investor protections and regulatory predictability in Zambia’s financial system. With the legal challenge still active, the case is now poised to remain in focus as BONI presses ahead with its claims.