News / National
Tsvangirai's son sued
17 Jun 2013 at 15:43hrs | Views
Prime Minister Morgan Tsvangirai's son Edwin has been dragged to the High Court for failing to pay back over US$107,000 that he allegedly borrowed from the struggling Interfin Banking Corporation in 2010.
Interfin is under curatorship and the curator Mr Peter Bailey filed summons for provisional sentence against Mr Tsvangirai under High Court Number 4044/13 on May 24.
The financial institution claims it entered an agreement with Mr Tsvangirai and the money was extended to him as a loan in batches between February 28 and May 4 2010.
Mr Tsvangirai allegedly failed to pay back the money and he wrote to Mr Bailey on October 18 last year acknowledging the debt and undertaking to pay back the loan through six monthly instalments of US$17 000 each from November 30 2012 to May 31 this year.
The seventh instalment was expected to clear the remainder, but Mr Tsvangirai failed to fulfil the proposed payment plan, prompting the bank to issue the summons.
Interfin filed the summons at the High Court last month claiming payment of the outstanding US$107 544,25 debt. The summons is based on the acknowledgement of debt by Mr Tsvangirai dated October 18 last year and part of it reads:
"Further to our meeting on Thursday October 11 concerning my outstanding debt, arising from various disbursements from Interfin Bank between 28 February to May 4 2010 I revert as follows;
"According to the current statement, the amount due including accrued interest is $107 544,25 which is in order and I accepted and undertook to provide you a payment plan. After a review of my finances and situation, may you accept my commitment to make six equal monthly payments of $17 000 each, with the first payment due by November 30 2012, plus a final amount in month seven to cater for the balance, including interest..."
Interfin claims the debt had been accruing interest at the rate of 20 percent per annum from October 19 last year to the date of payment in full. The financial institution is claiming US$107 544,25 plus interest. Mr Tsvangirai is expected to file his response to the claim soon.
Interfin is under curatorship and the curator Mr Peter Bailey filed summons for provisional sentence against Mr Tsvangirai under High Court Number 4044/13 on May 24.
The financial institution claims it entered an agreement with Mr Tsvangirai and the money was extended to him as a loan in batches between February 28 and May 4 2010.
Mr Tsvangirai allegedly failed to pay back the money and he wrote to Mr Bailey on October 18 last year acknowledging the debt and undertaking to pay back the loan through six monthly instalments of US$17 000 each from November 30 2012 to May 31 this year.
The seventh instalment was expected to clear the remainder, but Mr Tsvangirai failed to fulfil the proposed payment plan, prompting the bank to issue the summons.
Interfin filed the summons at the High Court last month claiming payment of the outstanding US$107 544,25 debt. The summons is based on the acknowledgement of debt by Mr Tsvangirai dated October 18 last year and part of it reads:
"Further to our meeting on Thursday October 11 concerning my outstanding debt, arising from various disbursements from Interfin Bank between 28 February to May 4 2010 I revert as follows;
"According to the current statement, the amount due including accrued interest is $107 544,25 which is in order and I accepted and undertook to provide you a payment plan. After a review of my finances and situation, may you accept my commitment to make six equal monthly payments of $17 000 each, with the first payment due by November 30 2012, plus a final amount in month seven to cater for the balance, including interest..."
Interfin claims the debt had been accruing interest at the rate of 20 percent per annum from October 19 last year to the date of payment in full. The financial institution is claiming US$107 544,25 plus interest. Mr Tsvangirai is expected to file his response to the claim soon.
Source - herald
