New Zimbabwe.com

Former ZINARA boss begs court not to dispose of his property

By Mary Taruvinga

EMBATTLED former Zimbabwe National Road Administration (ZINARA) boss Albert Mugabe has petitioned the courts not to execute his property which was attached by Sheriff of the High Court in a bid to recover over $47 739 which he owed to liquidated firm, Interfin Bank Limited in 2009.

Mugabe approached the High Court Tuesday seeking an order to bar the Sherriff from disposing of his property which has been under judicial management for the past two and half years.

The order forcing him to settle the debt was granted by High Court Judge David Mangota on November 2, 2015.

But Mugabe failed to abide by the court’s order before he was dragged to court for the second time by the bank which then obtained a writ of execution on November 19, 2015.

This was used to attach Mugabe’s property on April 26, 2016.

Mugabe has notified the court that he negotiated with the bank to effect payment of the money subject to the court’s order.

In his application, he also stated that he had been faithful to the agreement, but the financial institution went behind his back and instructed the Sheriff to execute the writ.

“The first respondent (Interfin Bank) issued summons against me claiming $33 445 capital amount, $14 200, 53 interest and $65 bank charges. The first Respondent (Interfin Bank) then obtained an order in default on 2 May 2015,” Mugabe said in his founding affidavit.

“I then negotiated with the first Respondent to pay the money subject to the court order and ever since then I have been paying the money. However, despite that we agreed that I pay the money of which I am paying, the first Respondent went on to execute the writ and has since instructed the second Respondent (The Sheriff of Zimbabwe) to execute the writ who went on to attach goods.”

Mugabe accused the bank of acting in bad faith and without taking into consideration that he was making payments.

According to the court papers, on or around December 4, 2009, the bank entered into an agreement to extend to Mugabe, a revolving credit facility of up to $50 000.

Under the revolving credit, it is alleged, Mugabe made capital withdrawals of $33 445,06 and the bank charged total interest of $14 229,53 together with bank charges in the sum of $65 bringing the total amount owing to $47 739,59.

However, Mugabe is said to have defaulted on “making due and punctual repayment” under the agreement as at August 17, 2015.

Since then he had not paid anything towards extinguishing the debt, prompting the bank to approach the courts for recourse.

According to the bank, the agreement was that all accounts outstanding were repayable on or before the expiry of the facility.

“The facility expired on August 31, 2010; the plaintiff extended to defendant a moratorium until December 31, 2014. The defendant acknowledged liability of the total amount outstanding in October 2014,” the bank said.