News / National
Chipanga ordered to settle $62,000 bank loan
09 Jan 2019 at 06:26hrs | Views
Former Zanu PF youth leader Kudzanai Chipanga has been ordered to settle a $62 000 debt with CBZ Bank and pay costs of suit to settle a legal wrangle that had dragged on for years.
The order, by High Court judge Justice Owen Tagu, was issued on December 28 last year after Chipanga and the bank signed a deed of settlement with a view to bring to finality the impasse that had taken almost six years to resolve.
The court papers indicate that Chipanga, who is also a former Member of Parliament for Makoni West, signed a revolving overdraft facility with CBZ Bank in January 2012, in terms of which he was given $31 000, which was to be repaid by September 30, 2012.
Interest would accrue on the amount drawn at the bank's minimum lending rate, which at the time was 20% per annum, calculated on the daily balance and compounded on a monthly basis.
Chipanga is said to have breached the agreement by failing to repay the amounts drawn together with interest, prompting the financial institution to approach the court for recourse.
According to the court papers, as at April 30, 2018, the former legislator was indebted to the bank to the total sum of $62 251,24.
Part of the court order by Tagu read: "Whereupon after reading documents filed of record, it is ordered that; the defendant (Chipanga) shall pay the plaintiff (CBZ) on the terms set out in the deed of settlement issued with this honourable court under HC4277/18 on July 31, 2018.
"A sum of $62 251,24, together with interest thereon, at the plaintiff's penalty rate from time to time, currently being at 20% per annum, calculated on the daily balance and compounded on a monthly basis, with effect from April 30, 2018 to date, of payment in full."
The judge also ordered Chipanga to pay collection commission and cost of suit on a legal practitioner and client scale.
The order, by High Court judge Justice Owen Tagu, was issued on December 28 last year after Chipanga and the bank signed a deed of settlement with a view to bring to finality the impasse that had taken almost six years to resolve.
The court papers indicate that Chipanga, who is also a former Member of Parliament for Makoni West, signed a revolving overdraft facility with CBZ Bank in January 2012, in terms of which he was given $31 000, which was to be repaid by September 30, 2012.
Interest would accrue on the amount drawn at the bank's minimum lending rate, which at the time was 20% per annum, calculated on the daily balance and compounded on a monthly basis.
According to the court papers, as at April 30, 2018, the former legislator was indebted to the bank to the total sum of $62 251,24.
Part of the court order by Tagu read: "Whereupon after reading documents filed of record, it is ordered that; the defendant (Chipanga) shall pay the plaintiff (CBZ) on the terms set out in the deed of settlement issued with this honourable court under HC4277/18 on July 31, 2018.
"A sum of $62 251,24, together with interest thereon, at the plaintiff's penalty rate from time to time, currently being at 20% per annum, calculated on the daily balance and compounded on a monthly basis, with effect from April 30, 2018 to date, of payment in full."
The judge also ordered Chipanga to pay collection commission and cost of suit on a legal practitioner and client scale.
Source - newsday
