New Zimbabwe.com

IDBZ sued for $2 million over loan

By Mary Taruvinga


THE Infrastructure Development Bank of Zimbabwe (IDBZ) has been dragged to court by Southend Cargo Airlines and its directors, Steven and Patience Fadzai Chituku who claim the bank collected more money than they owed it.

Southend Cargo Airlines is demanding a refund claiming IDBZ was only entitled to payment in respect of the loan they had borrowed being US$590 470.

According to court papers, on the 26th of November 2002, in case number HC1159/98 IDBZ obtained a judgement against the plaintiffs in the sum of US$590 470 and interest on that sum at the rate of 14.5% per annum from June 1, 1998 to the date of full payment.

“Plaintiffs jointly paid US$590 470 plus interest of US$506 200 at the rate of 14.5% per annum from June 1, 1998 to the date of full payment,” read the summons.

“They also paid US$54 917, 68 plus interest of US$49 688, 99 at the rate of 14.5% per annum from March 31, 1999 to the date of full payment and Costs of suit.”

The Chitukus told the court that from September 9, 1997 to February 1, 2009 before judgement had been entered they believed they were liable to IDBZ in terms of the loan agreement.

As per the judgment they paid the sum of or equivalent to US$3 358 900, 53.

“Upon proper computation, IDBZ was only entitled to payment in respect of the loan amount and interest in the sum of US$590 470, 90,” they said.

“The sum of US$2 768 429.63 or the equivalent thereof paid by the plaintiffs to IDBZ was not owing to them, nevertheless they appropriated the money.”

Now the Chitukus want the money back plus interest at the rate of five percent per annum from the date of judgment to the date of full payment and costs of suit.

The case is pending.