News / National
Bank sues minister over $36,000 debt
01 Sep 2017 at 06:39hrs | Views
Sport and Recreation minister Makhosini Hlongwane has been taken to the High Court by a local financial institution over a $36 801 vehicle and asset finance facility debt.
Stanbic Bank filed the summons on August 29 through its lawyers, Danziger and Partners, suing Hlongwane and his company, Carat Investments (Pvt) Ltd, which is in liquidation, together with one Adrian Hastings Kaira.
Hlongwane and Kaira are yet to respond to the lawsuit.
According to the court papers, sometime in June 2012, Stanbic Bank entered into an agreement, lent and advanced $30 000 to Carat Investments under a vehicle and asset finance facility.
As security for the due repayment of the loan, it is alleged, Hlongwane and Kaira stood as sureties and co-principal debtors for their company undertaking to pay legal practitioner's collection commission and costs of suit on the legal practitioner and client scale and also renouncing the benefits of execution and division.
The bank further said under the credit facility signed between the parties, default interest would accrue on overdue payments at the rate of 34% per annum from the date of default to the date of full and final payment.
"Carat Investments (Pvt) Ltd breached the credit agreement signed with the plaintiff by failing to repay the facility loan which expired on June 30, 2013. In fact, the company has since been placed under liquidation by the High Court owing to its inability to pay its creditors," Stanbic said.
"Despite demand on July 3, 2017, the first and second defendants [Hlongwane and Kaira] have failed, neglected and/or refused to settle the debt owed by their company, which stood at $36 801,28 as at March 29, 2015."
Stanbic Bank filed the summons on August 29 through its lawyers, Danziger and Partners, suing Hlongwane and his company, Carat Investments (Pvt) Ltd, which is in liquidation, together with one Adrian Hastings Kaira.
Hlongwane and Kaira are yet to respond to the lawsuit.
According to the court papers, sometime in June 2012, Stanbic Bank entered into an agreement, lent and advanced $30 000 to Carat Investments under a vehicle and asset finance facility.
As security for the due repayment of the loan, it is alleged, Hlongwane and Kaira stood as sureties and co-principal debtors for their company undertaking to pay legal practitioner's collection commission and costs of suit on the legal practitioner and client scale and also renouncing the benefits of execution and division.
The bank further said under the credit facility signed between the parties, default interest would accrue on overdue payments at the rate of 34% per annum from the date of default to the date of full and final payment.
"Carat Investments (Pvt) Ltd breached the credit agreement signed with the plaintiff by failing to repay the facility loan which expired on June 30, 2013. In fact, the company has since been placed under liquidation by the High Court owing to its inability to pay its creditors," Stanbic said.
"Despite demand on July 3, 2017, the first and second defendants [Hlongwane and Kaira] have failed, neglected and/or refused to settle the debt owed by their company, which stood at $36 801,28 as at March 29, 2015."
Source - newsday
