High Court orders Mathema to repay $50k loan

Mashudu Netsianda, Senior Court Reporter
THE High Court has ordered Matabeleland North Provincial Affairs Minister Cde Cain Ginyilitshe Ndabazekhaya Mathema to repay a $50 000 loan secured from the Agricultural Bank of Zimbabwe (Agribank) three years ago.

Cde Mathema, who is also a Zanu-PF Politburo member, was taken to court by Agribank after he defaulted on paying the loan secured in 2014 to fund his irrigation project.

The ruling by Bulawayo High Court judge Justice Nokuthula Moyo follows an application for default judgment by Agribank through its lawyers, Majoko and Majoko citing Cde Mathema as the defendant.

“It is ordered that a default judgment be and is hereby entered for the plaintiff (Agribank) against the defendant (Cde Mathema) for payment in the sum of $50 164,87 and interest calculated at the prescribed rate of 21,5 percent from the date of summons to the date of full payment,” ruled the judge.

Justice Moyo also ordered Cde Mathema to pay legal costs incurred by the bank on an attorney-client scale.

The Minister was in November 2013 given a loan of $27 900 for the purpose of purchasing drip irrigation equipment. According to the terms and conditions of the agreement, the loan attracted an interest of 21,5 percent per annum.

Cde Mathema only paid $5 500 on June 23 in 2015 and defaulted.

“The defendant drew down on the loan in full and the first instalment became due on June 27 in 2014 and the whole amount became due on November 27, 2014.

“The defendant defaulted on his obligations in terms of the loan in that he has only paid $5 500,” said Agribank.

According to papers before the court, Cde Mathema, as security for his indebtness to the bank, registered a notarial general covering bond over all his movable property.

“As at the date of summons the defendant is indebted to the plaintiff in the sum of $50 164,87 and interest continues to accrue at the rate of 21,5 percent per annum until payment in full,” said Agribank lawyers.

In terms of the agreement between the two parties, in the event of defaulting on his obligations, Cde Mathema would be liable to pay legal costs.

@mashnets