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Sipepa Nkomo fights bank over unpaid loan
01 Apr 2015 at 08:12hrs | Views
FORMER Minister of Water Resources Development and Management Samuel Sipepa Nkomo, who is being sued by NMB Bank for failing to repay a loan, has filed opposing papers.
Sipepa Nkomo through his lawyers R Ndlovu and Company last week filed a notice to defend in response to the $143, 000 lawsuit filed last month by NMB.
The former minister and his wife Roseline were recently expelled as Members of Parliament for Lobengula and Tsholotsho North respectively after defecting to the MDC-T splinter group, the MDC Renewal Team.
According to the summons issued at the Bulawayo High Court, the former legislators 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.
Sipepa Nkomo through his lawyers R Ndlovu and Company last week filed a notice to defend in response to the $143, 000 lawsuit filed last month by NMB.
The former minister and his wife Roseline were recently expelled as Members of Parliament for Lobengula and Tsholotsho North respectively after defecting to the MDC-T splinter group, the MDC Renewal Team.
According to the summons issued at the Bulawayo High Court, the former legislators 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 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.
Source - chronicle
