New Zimbabwe.com

Under-fire Magaya opts for out of court settlement in Homelink US$23 million debt

By Court Reporter


PROPHETIC Healing Deliverance Ministries (PHD), founder Walter Magaya and his wife, Tendai, have opted for an out of court settlement to repay a US$23 million loan owed to Homelink Finance Private (Limited) in a bid to save their expensive Harare guest house.

The couple, whose empire is embroiled in several criminal cases, was recently hauled to court by the State-owned company over failure to repay the loan.

A lawyer representing Homelink Finance confirmed recently before High Court Judge Happius Zhou, that the parties to the dispute had agreed on settling the matter out of court.

“Parties have agreed on a settlement and would want to proceed in that manner,” said the lawyer from Shomwe-Nyakuedzwa Attorneys.

Magaya’s lawyer Everson Chatambudza confirmed the position before Justice Zhou granted the order by consent from both parties.

According to court papers, Magaya and his wife bound themselves as surety and co-principal debtors to a loan extended to Yadah Connect Private Limited in 2018.

The clergyman risked losing his massive property in Waterfalls, which is used as a guest house.

Stand Numbers 167 and 168 of Prospect, Harare, measuring a combined 7,9 hectares were tendered as security for the loan and they become executable upon failure by the debtors to service the loan.

The couple had also offered mining machinery, equipment and vehicles financed under the facility as security.

Homelink, through its lawyers had filed summons for provisional sentence against the two as well as Yadah Connect.

The lending institution had submitted that the defendants breached the loan agreement hence an order compelling them to pay should be issued.

According to court papers, Homelink had extended a facility of US$23 338 745 to Yadah Connect in 2018.

The parties agreed that the loan would be repaid in 33 monthly installments of US$784 873,62 inclusive of interest, with effect from December 31 last year.

The repayment was to be paid in US dollars.