Philip Chiyangwa dragged to court

Philip Chiyangwa, the maverick millionaire businessman, risks losing four of his prime properties after he allegedly defaulted on a loan from CBZ Bank two years ago.

CBZ, one of Zimbabwe's top commercial banks, petitioned the high court for an order declaring the four Harare properties - which Chiyangwa committed as security for an $8147876 loan to his property firm, Pinnacle Property Holdings, in August 2010 - specially executable.

According to a summons filed in the Harare High Court by CBZ's lawyers, Mugugu and Associates, Chiyangwa and Pinnacle have reneged on their responsibility to repay the loan. The lawyers say Chiyangwa disregarded a reminder communicated to him and his company in November to settle the debt.

CBZ says Pinnacle, Chiyangwa and his sons Edmund and Bruce, who are cited as co-directors of the property firm and who bound themselves as co-principal debtors to any amount owing on the loan, passed on several mortgage bonds that were registered with the registrar of deeds in favour of the bank as security.

CBZ says the outstanding loan continues to attract interest. The bank insists the flamboyant businessman must repay the loan in full with interest at the rate of 35% a year.

But Chiyangwa, the vice-chairman of Zanu-PF in Mashonaland West province, has challenged CBZ's claim and demanded a copy of the loan agreement, proof of the total amount loaned and copies of the guarantees committed by Pinnacle.

Through his lawyers, Mhishi Legal Practitioners, Chiyangwa also queries the interest rate charged and wants copies of the mortgage bonds registered for the prime properties.