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Cain Mathema ordered to repay $50 000 Agribank loan
13 Jun 2017 at 06:39hrs | Views
THE High Court has ordered Matabeleland North Provincial Affairs minister Cain Mathema to repay a $50 000 loan he borrowed from Agribank nearly four years ago.
The bank filed summons against the minister sometime in January this year and later applied for a default judgment after Mathema failed to respond to the summons.
On June 8, Bulawayo High court judge Justice Nokuthula Moyo upheld the bank's application ordering Mathema to pay $50 164,87 with interest at the prescribed rate of 21,5% from the date of summons to date of full payment. She also ordered him to pay the costs of the suit on a lawyer- client scale.
In its declaration of the claim Agribank submitted that sometime in November 2013, Mathema applied for and received a loan of $27 900 for purchase of drip irrigation equipment.
"The amount loaned and advanced to the defendant would attract interest at the rate of 21,5% per annum. The first instalment was payable six months after drawdown and within six months thereof," the declaration read.
"The defendant drew down on the loan in full and the first instalment became due on June 27, 2014 and the whole amount became due on November 27, 2014. The defendant defaulted on his obligation in terms of the loan in that defendant has only paid $5 500 which he paid on June 23, 2015."
The bank submitted that as a security for his indebtedness, Mathema registered notarial general covering bond over all his movable property.
The bank filed summons against the minister sometime in January this year and later applied for a default judgment after Mathema failed to respond to the summons.
On June 8, Bulawayo High court judge Justice Nokuthula Moyo upheld the bank's application ordering Mathema to pay $50 164,87 with interest at the prescribed rate of 21,5% from the date of summons to date of full payment. She also ordered him to pay the costs of the suit on a lawyer- client scale.
In its declaration of the claim Agribank submitted that sometime in November 2013, Mathema applied for and received a loan of $27 900 for purchase of drip irrigation equipment.
"The amount loaned and advanced to the defendant would attract interest at the rate of 21,5% per annum. The first instalment was payable six months after drawdown and within six months thereof," the declaration read.
"The defendant drew down on the loan in full and the first instalment became due on June 27, 2014 and the whole amount became due on November 27, 2014. The defendant defaulted on his obligation in terms of the loan in that defendant has only paid $5 500 which he paid on June 23, 2015."
The bank submitted that as a security for his indebtedness, Mathema registered notarial general covering bond over all his movable property.
Source - newsday
