Gono saves his mansion from being auctioned

Former Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono last week moved swiftly to save his mansion in Harare's Greystone Park from being auctioned over a $1,3 million debt he owed to local vehicle supplier, Oasis Motors.

Lawyers from both parties agreed to an out-of-court-settlement.

Oasis Motors' lawyer Maureen Chitewe had targetted Gono's house since the property had been used as surety when the former central bank chief's Lunar Chickens received the vehicles six years ago.

The house, sitting on 4 654 square metres, was supposed to have been placed under the hammer last Friday.
Chitewe yesterday confirmed cancellation of the auction.

"The parties agreed on an amicable solution to the issue and I can confirm that the sale was subsequently cancelled," she said.

"I can't disclose the kind of agreement reached by the two parties, all I can say is that the sale was cancelled due to an agreement which was amicably arrived at."

In 2000, Gono bought an undisclosed number of vehicles worth $1 749 000 on credit from Oasis Motors for Lunar Chickens staff, and partly paid the debt, leaving a balance of $1 319 000.

Gono had initially challenged the decision, saying he could not be forced to settle the debt in United States dollars as the currency was not yet legally transactable when the agreement of sale was signed.

But High Court judge Lavender Makoni ruled that the ex-governor should pay the debt or allow the Sheriff of the Court to attach the property on behalf of the vehicle dealer.

Contacted for comment, Gono yesterday said: "I have no comment to make just like I did not comment when the property was erroneously listed."