adminChihota yesterday appeared in court for allegedly using his former worker’s house as collateral to secure a US$40 000 loan which he defaulted repaying.
As a result the complainant was prejudiced of his residential property and US$30 000. Chihota (60) was yesterday summoned to appear before regional magistrate Mr William Bhila charged with fraud. He was remanded out of custody on his own recognition to September 23 for trial. The complainant in the case is Mr David Tapera Mabuwa a former managing director of Wallace Laboratories, which is owned by Chihota.
Prosecutor Mr Zivanayi Makwanya alleges that on February 5 last year Chihota wrote two guarantee letters requesting the complainant to secure US$40 000 on behalf of Wallace and the money was to be drawn against Mr Mabuwa’s property. Chihota promised to pay back the money in future and the complainant went and obtained a US$30 000 loan from one Antioc Kurauone after surrendering his deeds.
The State says the loan was to be paid within three months and Chihota promised to honour the agreement.
It is alleged that to date Chihota has not paid anything. The two guarantee forms and the loan agreement entered between the complainant and Kurauone will be produced in court as exhibits.
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