Zimbabwe News and Internet Radio

Tsvangirai son sued over $107 000 loan

Prime Minister Morgan Tsvangirai’s son Edwin has been dragged to the High Court for failing to pay back over $107 000 that he allegedly borrowed from the struggling Interfin Banking Corporation in 2010.

Edwin Tsvangirai
Edwin Tsvangirai

Interfin is under curatorship and the curator Mr Peter Bailey filed summons for provisional sentence against Mr Tsvangirai under High Court Number 4044/13 on 24 May.

The financial institution claims it entered an agreement with Mr Tsvangirai and the money was extended to him as a loan to him in batches between 28 February and 4 May 2010.

Mr Tsvangirai allegedly failed to pay back the money and he wrote to Mr Bailey on 18 October last year acknowledging the debt and undertaking to pay back the loan through six monthly instalments of $17 000 each from 30 November 2012 to 31 May this year.

Related Articles
1 of 5

The seventh instalment was expected to clear the remainder, but Mr Tsvangirai failed to fulfil the proposed payment plan, prompting the bank to issue the summons. Interfin filed the summons at the High Court last month claiming payment of the outstanding $107 544,25 debt.

The summons is based on the acknowledgement of debt by Mr Tsvangirai dated 18 October last year and part of it reads:

“Further to our meeting on Thursday 11 October concerning my outstanding debt, arising from various disbursements from Interfin Bank between 28 February to 4 May 2010 I revert as follows;

“According to the current statement, the amount due including accrued interest is $107 544,25 which is in order and I accepted and undertook to provide you a payment plan.

“After a review of my finances and situation, may you accept my commitment to make six equal monthly payments of $17 000 each, with the first payment due by 30 November 2012, plus a final amount in month seven to cater for the balance, including interest…”

Interfin claims the debt had been accruing interest at the rate of 20 percent per annum from 19 October last year to the date of payment in full. The financial institution is claiming $107 544,25 plus interest. Mr Tsvangirai is expected to file his response to the claim soon. The Chronicle