HARARE – Property worth thousands of dollars belonging to ex-Zimbabwe Football Association (Zifa) president Cuthbert Dube is set for auction to settle a $500 000 loan which he owes a local financial institution.
The bank, a subsidiary of FBC Holdings Limited, is now seeking an order for the execution of Dube’s four properties, including two in Harare’s leafy suburb of Glen Lorne. Dube entered a loan agreement with FBC in July last year.
The loan was supposed to be paid back within 48 months, with monthly instalments of $8 458, 34 plus interest, commencing at the end of August last year and ending in July 2018.
“The defendant (Dube) utilised the loaned amount but breached the agreement when he failed to pay the agreed instalments with interest by the due date thereof.
“Accordingly, the full amount outstanding under the short term loan facility is now due and payable whilst interest is accruing on this amount at the time plaintiff (FBC)’s penalty rate from time to time is currently being at 34 percent per annum,” the court heard.
The bank also told the court that in addition of the loan, Dube was further indebted in the sum of $18 537, 30, which was the remaining capital balance due and outstanding in respect of money loaned to him under prior loan agreement dating back to January 2013.
“As a consequence of the outstanding capital balance from the said prior loan agreement, the capital outstanding loan balance on defendants loan account was increased to a sum of $424 537, 30 which is accruing interest at the plaintiff’s aforesaid penalty rate from time to time.
“As at May 2015, the defendant was indebted to the plaintiff in the total sum of $506 110, 71…,” the court heard.
The bank, in its court papers, is now seeking an order to attach his two Glen Lorne properties, which were offered as security for the loan.
In addition to the two Glen Lorne properties, the bank wants to execute Dube’s stands number 5102 Salisbury Township and number 3609 Prospect Township, which were also offered as surety.
In his response, Dube denied owing the amount.
He argued that the facility advanced to him was an overdraft.
“Defendant only withdrew an amount of $173 805, 27. Defendant paid $181 047, 52. The last transaction defendant withdrew was on the 14th of August 2014. Thereafter the defendant was suspended from work.
“Defendant advised plaintiff of what was taking place at his work place and advised plaintiff that it would not proceed with the agreement,” he said.
He denied utilising the $406 000, arguing that he had been suspended from work and no longer needed the funds.
Dube argued that the title deeds that he surrendered to the bank were not security for the loan but were forwarded for safe-keeping.
He said that his properties were valued at more than 10 times the amount being demanded, adding that the application was prematurely made.
The matter is still to be finalised before the High Court. Daily News