News / National
ZAOGA lost over $1,5 million to money lender
01 Mar 2013 at 01:26hrs | Views
ZAOGA could have lost over $1,5 million it had invested through a money lender McDowells International Properties Investment after the latter's operating licence was cancelled by the Reserve Bank of Zimbabwe in June last year.
McDowells is being sued by at least 28 defendants over their investments and the matter is set to be heard at the High Court in Harare under different case numbers. Zaoga allegedly lost over $1,5 million and R203 291 which the church had reportedly invested through its different parishes in and outside the country.
The reason for the cancellation of the firm's licence was, however, not made clear in the court papers.
According to Zaoga, cited as one of the applicants in the court papers, between 2010 and 2012, the church through its branches across the country, allegedly entered into numerous investment agreements with McDowells International Properties and deposited cash with the firm.
The investment plan, according to Zaoga, was that it would deposit or invest money for short and long-term periods.
The terms of the agreement were that after the expiration of the agreed period, McDowells would pay back Zaoga the invested amount together with accrued interest at rates ranging between six and 15%.
According to court papers, prior to the finalisation of the signed agreements and after the cancellation of its lending licence, McDowells directors and its agents allegedly orally misrepresented to Zaoga officials that they would pay back the amounts, but failed to so.
McDowells is also facing several other lawsuits after investment deals with other individuals and companies reportedly flopped. Other cases involve one Ideas Kunaka, who allegedly lost $169 086 and Rexmark Investments ($50 000).
McDowells is being sued by at least 28 defendants over their investments and the matter is set to be heard at the High Court in Harare under different case numbers. Zaoga allegedly lost over $1,5 million and R203 291 which the church had reportedly invested through its different parishes in and outside the country.
The reason for the cancellation of the firm's licence was, however, not made clear in the court papers.
According to Zaoga, cited as one of the applicants in the court papers, between 2010 and 2012, the church through its branches across the country, allegedly entered into numerous investment agreements with McDowells International Properties and deposited cash with the firm.
The investment plan, according to Zaoga, was that it would deposit or invest money for short and long-term periods.
The terms of the agreement were that after the expiration of the agreed period, McDowells would pay back Zaoga the invested amount together with accrued interest at rates ranging between six and 15%.
According to court papers, prior to the finalisation of the signed agreements and after the cancellation of its lending licence, McDowells directors and its agents allegedly orally misrepresented to Zaoga officials that they would pay back the amounts, but failed to so.
McDowells is also facing several other lawsuits after investment deals with other individuals and companies reportedly flopped. Other cases involve one Ideas Kunaka, who allegedly lost $169 086 and Rexmark Investments ($50 000).
Source - NewsDay
