News / Local
Sipepa Nkomo faces $143,000 lawsuit
25 Feb 2015 at 06:56hrs | Views
FORMER Minister of Water Resources Development and Management, Samuel Sipepa Nkomo and his wife, Roseline have been sued by the National Merchant Bank (NMB) Limited for more than $143,000 after they allegedly failed to repay a loan.
According to the summons issued at the Bulawayo High Court last week, Sipepa, who is also Lobengula MP and his wife, the legislator for Tsholotsho North and their company, Sweetshore Investments (Pvt) Ltd were cited as the defendants while NMB is the plaintiff in the matter.
Summons filed by the bank through their lawyers Cheda and Partners Legal Practitioners read: "The plaintiff and Sweetshore Investments (Pvt) Ltd entered into a credit facility agreement in terms of which the company was afforded credit facilities including overdraft, revolving acceptance credits, guarantees and cash loans. Sweetshore Investments utilised the credit facility and accessed funds or capital, which was not to exceed $70,000 at any given time."
The capital amount attracted 24 percent interest per annum as per the agreement.
"As at December 3, 2014, the capital debt amounted to $78,779,58 and the interest amounted to $64,860,26. Samuel Sipepa Nkomo and Roseline Nkomo signed co-principal agreements where they bound themselves to be co-principal debtors with the company for the due payment of the amount owed by Sweetshore Investments," read the summons.
In the court papers, NMB indicated that despite demanding the payment, the defendants failed to pay.
The bank is also claiming an interest at prescribed rate of 24 percent per annum from January 1, 2015 to the date of full and final payment of the debt as well as the cost of suit at attorney-client scale.
"The bank seeks an order for payment of $143,639,84 on account of the loan advanced to the company with the Sipepa Nkomo couple interposed as co-principal debtors which sum despite demand, the defendants have failed to pay," said the bank's lawyers.
Nkomo and his wife were yet to file papers in response to the lawsuit yesterday. They have up to March 5, to do so.
According to the summons issued at the Bulawayo High Court last week, Sipepa, who is also Lobengula MP and his wife, the legislator for Tsholotsho North and their company, Sweetshore Investments (Pvt) Ltd were cited as the defendants while NMB is the plaintiff in the matter.
Summons filed by the bank through their lawyers Cheda and Partners Legal Practitioners read: "The plaintiff and Sweetshore Investments (Pvt) Ltd entered into a credit facility agreement in terms of which the company was afforded credit facilities including overdraft, revolving acceptance credits, guarantees and cash loans. Sweetshore Investments utilised the credit facility and accessed funds or capital, which was not to exceed $70,000 at any given time."
The capital amount attracted 24 percent interest per annum as per the agreement.
"As at December 3, 2014, the capital debt amounted to $78,779,58 and the interest amounted to $64,860,26. Samuel Sipepa Nkomo and Roseline Nkomo signed co-principal agreements where they bound themselves to be co-principal debtors with the company for the due payment of the amount owed by Sweetshore Investments," read the summons.
In the court papers, NMB indicated that despite demanding the payment, the defendants failed to pay.
The bank is also claiming an interest at prescribed rate of 24 percent per annum from January 1, 2015 to the date of full and final payment of the debt as well as the cost of suit at attorney-client scale.
"The bank seeks an order for payment of $143,639,84 on account of the loan advanced to the company with the Sipepa Nkomo couple interposed as co-principal debtors which sum despite demand, the defendants have failed to pay," said the bank's lawyers.
Nkomo and his wife were yet to file papers in response to the lawsuit yesterday. They have up to March 5, to do so.
Source - chronicle
