News / National
Tsvangirai's son fails to repay loan
03 Jul 2014 at 05:04hrs | Views
The state media reports that the troubled MDC-T leader Morgan Tsvangirai's son, Edwin, risks having his property attached after failing to repay a loan of $107,500.
The former Prime Minister's first born son borrowed the money from the struggling Interfin Banking Corporation in 2010, but breached the agreement after failing to pay back.
Justice Priscilla Chigumba, sitting at the Harare High Court, yesterday granted Interfin's application for provisional sentence compelling Edwin to pay the money with interest.
The judgment gives Interfin a greenlight to attach property in a bid to recover the debt.
Interfin is under curatorship and the curator, Peter Bailey, filed summons for provisional sentence against Edwin on May 24.
The financial institution entered an agreement with Edwin Tsvangirai and the money was extended to him as a loan in batches between February 28 and May 4, 2010.
Tsvangirai failed to pay back the money and he wrote to Bailey on October 18, 2012, acknowledging the debt and undertaking to pay back the loan through six monthly installments of $17,000 each from November 30, 2012, to May 31 this year. The seventh instalment was expected to clear the balance.
But Tsvangirai failed to fulfil the proposed payment plan, prompting the bank to issue out the summons at the High Court claiming the outstanding $107,544.25 debt.
Interfin says in court papers that the debt is accruing interest at the rate of 20 percent per annum from October 19, 2012, to the date of payment in full.
The former Prime Minister's first born son borrowed the money from the struggling Interfin Banking Corporation in 2010, but breached the agreement after failing to pay back.
Justice Priscilla Chigumba, sitting at the Harare High Court, yesterday granted Interfin's application for provisional sentence compelling Edwin to pay the money with interest.
The judgment gives Interfin a greenlight to attach property in a bid to recover the debt.
The financial institution entered an agreement with Edwin Tsvangirai and the money was extended to him as a loan in batches between February 28 and May 4, 2010.
Tsvangirai failed to pay back the money and he wrote to Bailey on October 18, 2012, acknowledging the debt and undertaking to pay back the loan through six monthly installments of $17,000 each from November 30, 2012, to May 31 this year. The seventh instalment was expected to clear the balance.
But Tsvangirai failed to fulfil the proposed payment plan, prompting the bank to issue out the summons at the High Court claiming the outstanding $107,544.25 debt.
Interfin says in court papers that the debt is accruing interest at the rate of 20 percent per annum from October 19, 2012, to the date of payment in full.
Source - Chronicle
