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failing to repay a bank loan which has now ballooned to almost US$25 000 with interest and bank charges.
The commercial bank approached the High Court seeking a default judgment to enable the bank to dispose a stand in Dzivaresekwa, which Dep Comm-Gen Matanga pledged as surety.
Agribank – in its declaration – stated that on or about September 23, 2009 they advanced US$15 000 upon certain terms and conditions in which Dep Comm-Gen Matanga undertook to pay within 60 days.
The bank – through its lawyers Chinamasa, Mudimu and Dondo – averred that it was a term of the agreement with Dep Comm-Gen Matanga that he would also pay interest on the amount loaned and advanced at six percent per annum.
He was also required to pay an establishment fee of five percent upfront upon signing the agreement and five-percent draw down fee.
Further, the court papers said Dep Comm-Gen Matanga pledged as surety a US$20 000 stand in Dzivaresekwa, which is registered in his name and one Prudence Chamapana who is cited as second respondent in the application.
“The first respondent (Dep Comm Gen Matanga) has defaulted on the loan and failed to repay in terms of the agreement resulting in the loan accruing interests and bank charges as at October 31, 2010,” Agribank submitted.
“The debt now stands at a total of US$24 476,33 wherefore the plaintiff claim against the two defendants jointly and severally liable the one paying the other to be absolved.”
However, the Dep Comm Gen Matanga said he had agreed with the bank to dispose his stand to recover their money.
“This is procedural because they (bank) have written to me and we agreed that they sell the stand and offset the debt,” Dep Comm Gen Matanga said.
Online Reporter