News / National
Chipanga sued over $62,000 CBZ debt
14 May 2018 at 07:54hrs | Views
Former Zanu-PF youth secretary Kudzanai Chipanga has been taken to the High Court by CBZ bank, which is seeking to recover over $62 000 he obtained from the financial institution through an overdraft facility six years ago.
The bank is also seeking an order to attach his property to recover the money.
Chipanga, who is also the former Makoni West MP, was issued with summons by the bank last Wednesday under case number HC4277/18 and is yet to enter his appearance to defend.
CBZ said it entered into an agreement with the politician in January 2012 granting him a revolving overdraft facility of $31 000, which was repayable with interest on the expiry date, being September 30, 2013.
"It was a term of the agreement that interest would accrue on the amount drawn under the overdraft facility at the plaintiff's (CBZ) minimum lending rate from time to time, which was 15% per annum, calculated on the daily balance compounded on a monthly basis," the bank said in its declaration.
"In the event of a default such interest would accrue at the plaintiff's penalty rate from time to time…despite utilising the overdraft facility. Defendant (Chipanga) breached the agreement when he failed to repay the amounts drawn together with interest thereon on the due date."
Chipanga's failure to service the loan then prompted the bank to approach the court for recourse after all its efforts to recover the money yielded nothing.
"Defendant has always acknowledged his indebtedness to the plaintiff and has made part-payments towards the settlement of the acknowledgement of debt, the last of which was paid on February 19, 2018 and nothing has thereafter been paid," the bank said.
"Despite a demand letter dated February 9, 2017, defendant failed to pay the amount due to the plaintiff.
"In terms of the notarial general covering bond number 1041/2012 dated January 18, 2012, defendant bonded all his movable property as security for repayment of his indebtedness to the plaintiff.
"Accordingly, the said movable property must be declared to be specially executable."
The matter is pending.
The bank is also seeking an order to attach his property to recover the money.
Chipanga, who is also the former Makoni West MP, was issued with summons by the bank last Wednesday under case number HC4277/18 and is yet to enter his appearance to defend.
CBZ said it entered into an agreement with the politician in January 2012 granting him a revolving overdraft facility of $31 000, which was repayable with interest on the expiry date, being September 30, 2013.
"It was a term of the agreement that interest would accrue on the amount drawn under the overdraft facility at the plaintiff's (CBZ) minimum lending rate from time to time, which was 15% per annum, calculated on the daily balance compounded on a monthly basis," the bank said in its declaration.
"In the event of a default such interest would accrue at the plaintiff's penalty rate from time to time…despite utilising the overdraft facility. Defendant (Chipanga) breached the agreement when he failed to repay the amounts drawn together with interest thereon on the due date."
Chipanga's failure to service the loan then prompted the bank to approach the court for recourse after all its efforts to recover the money yielded nothing.
"Defendant has always acknowledged his indebtedness to the plaintiff and has made part-payments towards the settlement of the acknowledgement of debt, the last of which was paid on February 19, 2018 and nothing has thereafter been paid," the bank said.
"Despite a demand letter dated February 9, 2017, defendant failed to pay the amount due to the plaintiff.
"In terms of the notarial general covering bond number 1041/2012 dated January 18, 2012, defendant bonded all his movable property as security for repayment of his indebtedness to the plaintiff.
"Accordingly, the said movable property must be declared to be specially executable."
The matter is pending.
Source - the standard
