News / National
Rugare Gumbo sued over $151,600 debt
16 Jun 2017 at 03:42hrs | Views
THE Agricultural Bank of Zimbabwe (Agribank) has taken former Zanu-PF spokesperson Rugare Gumbo to the High Court seeking the repayment of a $151 607 debt.
The bank issued summons against the former Agriculture minister on Tuesday after he allegedly failed to abide by the agreements he entered into with the bank concerning the repayment of the three-year-old loan.
Gumbo is yet to respond to the litigation.
In its declaration, the bank said it entered into a loan agreement with the ex-Cabinet minister for the provision of two loans on December 19, 2014.
The bank further said in terms of clause two of the agreement, it provided Gumbo with capital sums of $30 000 and $106 000 respectively, which amount was supposed to have been repaid together with interest by October 31, 2016.
"In breach of the loan agreement, the defendant (Gumbo) failed to repay the capital sums together with interest, in respect of both loan agreements, by October 31, 2016, as agreed in terms of the loan agreements," the bank said through its lawyers Dube, Manikai and Hwacha Law Chambers.
"The plaintiff's (Agribank) executive banking manager, Dzoraivaripasi Mudavanhu, who is the branch manager for the relevant branch, prepared a certificate of indebtedness on May 30, 2017, which states that the total amount owed by defendant to plaintiff between the two loan agreements as at that date is $151 607,46."
The bank also said it was claiming penalty interest, which is to be reckoned from the date of certificate of indebtedness at the rate of 20,09% per annum until the date of full payment and costs of suit on a legal practitioner and client scale.
The bank issued summons against the former Agriculture minister on Tuesday after he allegedly failed to abide by the agreements he entered into with the bank concerning the repayment of the three-year-old loan.
Gumbo is yet to respond to the litigation.
In its declaration, the bank said it entered into a loan agreement with the ex-Cabinet minister for the provision of two loans on December 19, 2014.
"In breach of the loan agreement, the defendant (Gumbo) failed to repay the capital sums together with interest, in respect of both loan agreements, by October 31, 2016, as agreed in terms of the loan agreements," the bank said through its lawyers Dube, Manikai and Hwacha Law Chambers.
"The plaintiff's (Agribank) executive banking manager, Dzoraivaripasi Mudavanhu, who is the branch manager for the relevant branch, prepared a certificate of indebtedness on May 30, 2017, which states that the total amount owed by defendant to plaintiff between the two loan agreements as at that date is $151 607,46."
The bank also said it was claiming penalty interest, which is to be reckoned from the date of certificate of indebtedness at the rate of 20,09% per annum until the date of full payment and costs of suit on a legal practitioner and client scale.
Source - newsday
