Minister fails to repay $50 000 Agribank loan

By Jeffrey Muvundusi

The High Court has ordered Matabeleland North State minister  Ndabazekhaya Cain Ginyilitshe Mathema to pay $50 000 to Agribank to amortise a loan he acquired for purchasing irrigation equipment.

Justice Nokuthula Moyo passed the default judgment following an application by Agribank through its legal practitioners Messrs Majoko and Majoko.

According to the applicant’s founding affidavit, sometime in November 2013, Mathema successfully applied for a $27 900 loan from Agribank for purchasing drip irrigation equipment.

“The amount loaned and advanced to the defendant would attract interest at the rate of 2,5 percent per annum. The first instalment was payable six months after drawdown and within six months thereof,” said the plaintiff.

“The defendant drew down on the loan in full and the first instalment became due on the 27th of June 2014 and the whole amount became due on the 27th of November, 2004.”

The commercial bank noted that Mathema defaulted on his obligations in terms of the loan in that he has only managed to pay $5 500, which he paid on June 23 in 2015.

“As security for his indebtedness to plaintiff, defendant registered notarial general covering bond over his movable property of whatsoever nature and wherever situate.

“It was a term of the parties’ agreement that in the event of the defendant defaulting on his obligations to the plaintiff, defendant would become liable to pay costs on the scale as between legal practitioner and client, including collection commission.”

As at the date of issue of summons, the Zanu PF minister is indebted to the plaintiff in the sum of $50 164,87 and interest continues to accrue at the rate of 21,5 percent per annum until payment in full.

Justice Moyo, however, ordered Mathema to pay a total of $50 164 87 as well as interest at the prescribed rate of 21,5 percent from date of summons to date of full payment. Daily News