News / National
Mugabe's ex-minister loses estate over US$766k bank loan
30 May 2019 at 07:56hrs | Views
Former Mines and Mining Development deputy minister Fred Moyo has lost his family property and estate after the High Court recently ruled in favour of Stanbic Bank which is seeking to recover over US$766 000 it is owed.
The judgment seizing Moyo's property and estate was delivered by Justice Edith Mushore after an earlier auction of some of Moyo's property to pay off the debt only managed to raise a paltry US$7 767.
The writ of execution against Moyo's property came about when the former deputy minister and his fellow directors Paul Diamond, Dirk Renier Bewade and Sydney Steyn in a mine called Ox Mining, failed to settle the loan which they had personally guaranteed.
According to the writ of execution, the property attached included a Ford Ranger T6 and a Nissan Hardbody vehicle, six fridges, two sets of sofas, stoves, kitchen unit, computers, tables, microwaves, dressing tables, headboards and solar batteries.
However, when Moyo's property was attached by the Sheriff of the High Court his wife, Yeyani Moyo, instituted interpleader proceedings, but the application was dismissed.
Later, the bank sought to engage Moyo in a series of meetings with a view to resolve the payment of the debt, but the former deputy minister is said to have failed to co-operate prompting the financial institution to make an application for him to be placed under provisional liquidation.
Moyo is said to have transferred his personal immovable property into a family trust called the Nelundo Family Trust, a move considered by the bank as an act of disposition.
The court heard that it was against this background that the bank sought to have Moyo's family trust sequestrated as well.
"It is common cause that the respondent (Moyo) transferred an immovable asset into a family trust when it was apparent that his financial obligations were threatening his private estate," Justice Mushore said.
"The fact of the property being jointly owned by himself and Yeyani is neither here nor there. It is his interest in the property that he sought to protect together with Yeyani's interest. In my view, it was a transaction which was borne not of philanthropy, but of mendacity and survival…"
The loan agreement between the parties is said to have been entered on August 30, 2012 at which time the bank released the funds. The parties then agreed that Ox Mining would repay the loan with interest, but in breach of the loan agreement, the mine failed to pay the amount, prompting the bank to sue for recovery.
The judgment seizing Moyo's property and estate was delivered by Justice Edith Mushore after an earlier auction of some of Moyo's property to pay off the debt only managed to raise a paltry US$7 767.
The writ of execution against Moyo's property came about when the former deputy minister and his fellow directors Paul Diamond, Dirk Renier Bewade and Sydney Steyn in a mine called Ox Mining, failed to settle the loan which they had personally guaranteed.
According to the writ of execution, the property attached included a Ford Ranger T6 and a Nissan Hardbody vehicle, six fridges, two sets of sofas, stoves, kitchen unit, computers, tables, microwaves, dressing tables, headboards and solar batteries.
However, when Moyo's property was attached by the Sheriff of the High Court his wife, Yeyani Moyo, instituted interpleader proceedings, but the application was dismissed.
Moyo is said to have transferred his personal immovable property into a family trust called the Nelundo Family Trust, a move considered by the bank as an act of disposition.
The court heard that it was against this background that the bank sought to have Moyo's family trust sequestrated as well.
"It is common cause that the respondent (Moyo) transferred an immovable asset into a family trust when it was apparent that his financial obligations were threatening his private estate," Justice Mushore said.
"The fact of the property being jointly owned by himself and Yeyani is neither here nor there. It is his interest in the property that he sought to protect together with Yeyani's interest. In my view, it was a transaction which was borne not of philanthropy, but of mendacity and survival…"
The loan agreement between the parties is said to have been entered on August 30, 2012 at which time the bank released the funds. The parties then agreed that Ox Mining would repay the loan with interest, but in breach of the loan agreement, the mine failed to pay the amount, prompting the bank to sue for recovery.
Source - newsday
