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Ex-Zinara boss sued over US$68k debt
2 hrs ago |
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Former Zimbabwe National Road Administration (Zinara) chief executive officer Frank Chitukutuku and his wife, Nyasha, have been taken to the High Court by Alliance Insurance Company over an alleged outstanding mortgage-backed debt of US$68 000.
The insurer is seeking a provisional sentence for US$61 000, representing the outstanding capital amount, together with US$7 000 in agreed legal fees and interest at 5 percent per annum calculated from April 15, 2026.
Alliance Insurance also cited Voedsel Enterprise, represented by Solomon Mahufe, as a respondent in the matter.
According to court documents, Alliance Insurance and Voedsel Enterprise entered into an acknowledgement of debt agreement arising from a judgment debt amounting to US$161 000.
The agreement stipulated that the full amount was to be paid on or before April 15, 2026.
Court papers indicate that under clause 3 of the agreement, failure to settle the debt by the due date would trigger an acceleration clause, making the entire outstanding amount immediately due and payable.
The agreement further provided for legal costs in the event of a breach.
Under clause 7, Voedsel Enterprise and its sureties agreed to pay a flat legal fee of US$7 000 if they defaulted on the agreement. Clause 8 provides that if legal proceedings are instituted and opposed, Alliance Insurance would be entitled to recover legal fees amounting to US$15 000.
According to the application, Voedsel Enterprise was required to secure sureties who would provide a mortgage bond over immovable property as security for the debt.
The insurer states that on February 24, 2026, Chitukutuku and his wife signed as sureties and co-principal debtors and mortgaged their Glen Lorne property in favour of Alliance Insurance.
The property, situated in the upmarket Harare suburb of Glen Lorne, measures 8 853 square metres and is held under Deed of Transfer No. 3885/2011.
Alliance Insurance alleges that Voedsel Enterprise failed to settle the debt by the agreed deadline of April 15, thereby triggering the acceleration clause.
A demand letter was subsequently issued on April 16, 2026. The company later paid US$100 000 towards the debt, reducing the outstanding balance to US$61 000.
The insurer argues that the remaining amount, together with the agreed legal fees of US$7 000, is now due and payable.
Alliance Insurance further states that should the respondents oppose the application, it will amend its claim to seek US$15 000 in legal fees in accordance with the terms of the agreement.
As part of the relief sought, the insurer wants the High Court to declare the Glen Lorne property specially executable to facilitate recovery of the outstanding debt.
The matter is currently pending before the High Court, which will determine whether the provisional sentence sought by Alliance Insurance should be granted.
No response from the respondents had been filed in court at the time of reporting.
The insurer is seeking a provisional sentence for US$61 000, representing the outstanding capital amount, together with US$7 000 in agreed legal fees and interest at 5 percent per annum calculated from April 15, 2026.
Alliance Insurance also cited Voedsel Enterprise, represented by Solomon Mahufe, as a respondent in the matter.
According to court documents, Alliance Insurance and Voedsel Enterprise entered into an acknowledgement of debt agreement arising from a judgment debt amounting to US$161 000.
The agreement stipulated that the full amount was to be paid on or before April 15, 2026.
Court papers indicate that under clause 3 of the agreement, failure to settle the debt by the due date would trigger an acceleration clause, making the entire outstanding amount immediately due and payable.
The agreement further provided for legal costs in the event of a breach.
Under clause 7, Voedsel Enterprise and its sureties agreed to pay a flat legal fee of US$7 000 if they defaulted on the agreement. Clause 8 provides that if legal proceedings are instituted and opposed, Alliance Insurance would be entitled to recover legal fees amounting to US$15 000.
According to the application, Voedsel Enterprise was required to secure sureties who would provide a mortgage bond over immovable property as security for the debt.
The property, situated in the upmarket Harare suburb of Glen Lorne, measures 8 853 square metres and is held under Deed of Transfer No. 3885/2011.
Alliance Insurance alleges that Voedsel Enterprise failed to settle the debt by the agreed deadline of April 15, thereby triggering the acceleration clause.
A demand letter was subsequently issued on April 16, 2026. The company later paid US$100 000 towards the debt, reducing the outstanding balance to US$61 000.
The insurer argues that the remaining amount, together with the agreed legal fees of US$7 000, is now due and payable.
Alliance Insurance further states that should the respondents oppose the application, it will amend its claim to seek US$15 000 in legal fees in accordance with the terms of the agreement.
As part of the relief sought, the insurer wants the High Court to declare the Glen Lorne property specially executable to facilitate recovery of the outstanding debt.
The matter is currently pending before the High Court, which will determine whether the provisional sentence sought by Alliance Insurance should be granted.
No response from the respondents had been filed in court at the time of reporting.
Source - newsday
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