Deceased’s house used as collateral to secure bank loan

Tendai Rupapa Senior Reporter
A Harare man allegedly acquired a US$74 000 loan from a local bank using his late brother-in-law’s house worth US$300 000 as collateral after forging the deceased’s signature.

Elfigio Chiwazo (53) is said to have applied for the loan in 2014 and used Hendrick Mutemwa Mundia’s Waterfalls property as security.

Mundia died in 2003.

Chiwazo allegedly committed the offence in connivance with the deceased’s nephew who is still at large.

The offence came to light when Chiwazo failed to pay back the loan, prompting the bank to attach the said house.

Chiwazo recently appeared in court before Ms Barbra Mateko, who granted him $500 bail coupled with some conditions.

As part of the conditions, Chiwazo was ordered to surrender his passport, continue residing at his given address and to report once a week to police.

He is being represented by Mr Tafara Chiturumani.

Prosecuting, Mrs Idah Maromo alleged that sometime in June 2003, Mundia’s sister, who was appointed the estate’s executor, started the process of registering the estate with the Master of High Court.

She could not finish the registering process since during that period, the deceased’s children —who are beneficiaries — were all residing in the United States.

Sometime in 2019, the court heard, the family of the deceased gathered for Mundia’s tombstone unveiling ceremony.

The executor and the beneficiaries had a family gathering and decided to use the opportunity to finalise the registering of the estate.

They allegedly approached the Registrar of Deeds to verify the status of Mundia’s Waterfalls property and discovered that the property had been transferred to GC Family Trust.

Investigations then revealed the scandal.

It was discovered that sometime in 2014, Chiwazo connived with his alleged accomplice and approached a local bank where they applied for a loan amounting to US$74 000, which was deposited in Chiwazo’s company account — Tolof Services — where he is a signatory.

They used the late Mundia’s Waterfalls property as collateral after they forged his signature, purporting that he had consented to have his property used as security when, in actual fact, Mundia had died in 2003.

Chiwazo failed to pay back the loan, prompting the bank to approach the High Court in a bid to recover its money.

The property was later sold through public auction, it is alleged.