News / National
$400 000 debt chokes Zanu-PF MP
14 Sep 2016 at 07:13hrs | Views
Chegutu West legislator Dexter Nduna's estate is facing sequestration after a bank claimed the legislator owed it close to $400 000 including interests for loans advanced to finance his family businesses.
Standard Chartered Bank obtained a High Court judgment for provisional sentence against Mr Nduna (pictured) and his wife Scholastica and their business Badon Enterprises (Pvt) Ltd, in September 2013.
The couple had failed to liquidate their debt, which at the time stood at $231 171. 60.
The court ordered them to repay the loan plus interest at 23 percent per annum calculated from June 2013.
To date the debt has ballonned to $390 679.
The bank has now turned to the High Court again applying for sequestration of the couple's estate in a bid recover its financial losses.
Sequestration is a legal term referring generally to the act of valuable property being taken into custody by an agent of the court and locked away for safekeeping.
It is usually done to prevent the property from being disposed of or abused before a dispute over its ownership can be resolved.
Last October the court issued an order that their movable property could be sold on execution to recover the bank's money.
The Sheriff went to the couple's home to serve the warrant of execution, but found no disposable assets.
In its application, Standard Chartered Bank Zimbabwe, represented by its chief finance officer Mr Harton Maliki, said the couple's financial affairs needed investigation.
He submitted that it would be to the advantage of the creditors if the estate could be sequestrated and a trustee appointed to investigate the couple's financial affairs.
Mr Maliki further queried the couple's reported lack of funds and said they operate a farming business while Mr Nduna is a Member of Parliament and receives allowances.
The Master of the High Court, Mr Eldard Mutasa, has since filed his report on the matter in terms of Section 12(8) of the Insolvency Act.
The Act enjoins the Master to report to the High Court facts justifying the courts to postpone or dismissing the hearing.
In this case, Mr Mutasa said the hearing was justified.
"Prima facie the respondents have committed the act of insolvency as evidenced by the nulla bona (no goods) return of the Sheriff," said Mr Mutasa.
The couple, which is seemingly in financial discord, is contesting the bank's application.
Standard Chartered Bank obtained a High Court judgment for provisional sentence against Mr Nduna (pictured) and his wife Scholastica and their business Badon Enterprises (Pvt) Ltd, in September 2013.
The couple had failed to liquidate their debt, which at the time stood at $231 171. 60.
The court ordered them to repay the loan plus interest at 23 percent per annum calculated from June 2013.
To date the debt has ballonned to $390 679.
The bank has now turned to the High Court again applying for sequestration of the couple's estate in a bid recover its financial losses.
Sequestration is a legal term referring generally to the act of valuable property being taken into custody by an agent of the court and locked away for safekeeping.
It is usually done to prevent the property from being disposed of or abused before a dispute over its ownership can be resolved.
Last October the court issued an order that their movable property could be sold on execution to recover the bank's money.
The Sheriff went to the couple's home to serve the warrant of execution, but found no disposable assets.
In its application, Standard Chartered Bank Zimbabwe, represented by its chief finance officer Mr Harton Maliki, said the couple's financial affairs needed investigation.
He submitted that it would be to the advantage of the creditors if the estate could be sequestrated and a trustee appointed to investigate the couple's financial affairs.
Mr Maliki further queried the couple's reported lack of funds and said they operate a farming business while Mr Nduna is a Member of Parliament and receives allowances.
The Master of the High Court, Mr Eldard Mutasa, has since filed his report on the matter in terms of Section 12(8) of the Insolvency Act.
The Act enjoins the Master to report to the High Court facts justifying the courts to postpone or dismissing the hearing.
In this case, Mr Mutasa said the hearing was justified.
"Prima facie the respondents have committed the act of insolvency as evidenced by the nulla bona (no goods) return of the Sheriff," said Mr Mutasa.
The couple, which is seemingly in financial discord, is contesting the bank's application.
Source - the herald
