African Banking Corporation is foreclosing former Premier Service Medical Aid Society (Psmas) chief executive officer Cuthbert Dube ’s four-bed roomed home, seized after failing to settle bad debt.
This comes amid a surge in foreclosures representing a new wave of distressed property seizures triggered by the ongoing financial squeeze, analysts say, with many banks no longer willing to grant struggling debtors forbearance.
Dube’s Borrowdale property is set to go under the hammer next week.
Preferred Properties auctioneers said in a notice yesterday: “Duly instructed by the Sheriff of the High Court of Zimbabwe we will be offering immovable properties for sale by Public Auction. African Banking Corporation vs Cuthbert Dube.
- Hard hit Cuthbert Dube dragged to court over unpaid rent
- Decision to fire Dube communicated to Fifa, SRC
- Dube loses PSMI stake
- FIFA says Cuthbert Dube still in charge
- Curthbert Dube Pleads With Government for US $3,2 million
- PSMAS Refuses To Pay Dube’s $3m Award
The defendants and title in relation to Lot 3 Siligna situated in the district of Salisbury AKA Number 152 Domboshava Road, Borrowdale, Harare, Improvements: 4 beds, lounge, dining and kitchen.”
Dube, who grossed $6,4 million per year at Psmas, reportedly failed to service the commercial loan that matured and the full balance became due immediately.
It’s common practice for banks to refinance such loans when they become due. But banks have become increasingly reluctant to do that because of pressure from regulators to clean up their balance sheets.
This comes as non-performing loans — which will never be repaid, in full or at all — have become the biggest risk to the banking system’s stability.
The former Zifa president is currently walking a tight rope, facing investigations by the Zimbabwe Anti-Corruption Commission (Zacc) over allegations of abuse of office, abuse of public funds, money laundering and tax evasion.
However, Dube is still owed a significant amount of money by Zifa, having committed personal resources and assets to foot a number of national team assignments.
Meanwhile, businessman Simbarashe Mupandanyama, the group CEO for Broadway Investments, is also set to lose his Glen Lorne home after defaulting on a CBZ loan. Preferred Properties is auctioning off his house at stand 866 in Glen Lorne Township 23 of Lot BC Kambanji.
The auctioneer noted that the improvements that have been made to the property include split level four bedrooms, with the home walled and gated.
The auction at Raylton Sports Club on June 30 will also see 29 residential stands in Goromonzi belonging to ex-PG Industries chief executive officer Gerald Mujaji going under the hammer.
This comes after Mujaji failed to settle a long standing debt owed to Claudius Nhemwa.
Elsewhere, the once thriving Kalamazoo printing business — placed under voluntary provisional judicial management in 2012 — is set to lose a double-storey building in Belvedere over a Stanbic Bank Zimbabwe debt.-Dailynews