News / National
RBZ takes Zim-Diasporas to court to recover home loans
27 Apr 2011 at 06:56hrs | Views
A UNITED KINGDOM-based couple is being sued for allegedly failing to repay £45 000 it was loaned by Homelink (Pvt) Ltd to buy a house in Zimbabwe, six years ago.
Homelink was specifically established by the Reserve Bank of Zimbabwe to harness foreign currency inflows into the country from Zimbabweans living abroad.
However, the firm has approached the High Court seeking an order to seize the couple's property to recover the £45 000.
According to summons the couple - Lovemore and Milda Kandare entered into an agreement with Homelink sometime in September 2005.
The couple was advanced with ZWD$502 million as a loan to purchase an immovable property.
This money, the court papers stated, was converted to £45 000 with approval of the exchange control authority.
The Kandare's, Homelink stated used the money to buy a property in Hatfield.
In terms of the agreement the couple was allegedly required and indeed agreed to make repayments on the capital amount in British Pounds together with interest at the agreed rate as well as other administrative charges.
Homelink averred that the amount was to be paid in fixed monthly installments of £894,04 in one year.
However, Homelink say that the couple has since failed to repay the loan.
"Defendant (Kandare's) has acknowledged their indebtedness to be really and lawfully and owes the plaintiff in the sum of £41 991 and an additional £3 894,61 with interests calculated at 4,5 percent per annum thereon with effect from the date of advance with the capital," Homelink submitted.
The Kandare's were yet to respond to the application to be heard by Justice Bharat Patel.
Homelink has also taken another UK based Zimbabwean to court in a bid to recover a US$17 000 home loan advanced to her that same year.
The company advanced Z$253 000 000 to Mrs Bonani Ntuli of Barten in Oxford, UK in 2005, for the purchase of an immovable property in Zimbabwe.
Both parties signed the agreement, which required Mrs Ntuli to repay the loan in British pounds equivalent over five years.
In its claim filed at the High Court, Homelink wants an order compelling Mrs Ntuli to pay back the money.
With the exchange control approval the money was converted to £27 866,84 using the prevailing rate at that time, Homelink says in its summons.
"In terms of the agreement defendant (Mrs Ntuli) was required to make payments of the capital amount in pounds together with interests at agreed rate as well as administration charges with fixed monthly installments of £465 over five years," Homelink stated.
In terms of the bond, Mrs Ntuli, the court papers said failed to pay interests and installments of capital premiums of insurance or other sums. Dube, Manikai and Hwacha legal Practitioners are representing Homelink while Bruce Mujeyi Attorneys appear for Mrs Ntuli who was yet to respond to the lawsuit.
Homelink was specifically established by the Reserve Bank of Zimbabwe to harness foreign currency inflows into the country from Zimbabweans living abroad.
However, the firm has approached the High Court seeking an order to seize the couple's property to recover the £45 000.
According to summons the couple - Lovemore and Milda Kandare entered into an agreement with Homelink sometime in September 2005.
The couple was advanced with ZWD$502 million as a loan to purchase an immovable property.
This money, the court papers stated, was converted to £45 000 with approval of the exchange control authority.
The Kandare's, Homelink stated used the money to buy a property in Hatfield.
In terms of the agreement the couple was allegedly required and indeed agreed to make repayments on the capital amount in British Pounds together with interest at the agreed rate as well as other administrative charges.
Homelink averred that the amount was to be paid in fixed monthly installments of £894,04 in one year.
However, Homelink say that the couple has since failed to repay the loan.
"Defendant (Kandare's) has acknowledged their indebtedness to be really and lawfully and owes the plaintiff in the sum of £41 991 and an additional £3 894,61 with interests calculated at 4,5 percent per annum thereon with effect from the date of advance with the capital," Homelink submitted.
The Kandare's were yet to respond to the application to be heard by Justice Bharat Patel.
Homelink has also taken another UK based Zimbabwean to court in a bid to recover a US$17 000 home loan advanced to her that same year.
The company advanced Z$253 000 000 to Mrs Bonani Ntuli of Barten in Oxford, UK in 2005, for the purchase of an immovable property in Zimbabwe.
Both parties signed the agreement, which required Mrs Ntuli to repay the loan in British pounds equivalent over five years.
In its claim filed at the High Court, Homelink wants an order compelling Mrs Ntuli to pay back the money.
With the exchange control approval the money was converted to £27 866,84 using the prevailing rate at that time, Homelink says in its summons.
"In terms of the agreement defendant (Mrs Ntuli) was required to make payments of the capital amount in pounds together with interests at agreed rate as well as administration charges with fixed monthly installments of £465 over five years," Homelink stated.
In terms of the bond, Mrs Ntuli, the court papers said failed to pay interests and installments of capital premiums of insurance or other sums. Dube, Manikai and Hwacha legal Practitioners are representing Homelink while Bruce Mujeyi Attorneys appear for Mrs Ntuli who was yet to respond to the lawsuit.
Source - TNZ
