Former Finance deputy minister and Mutoko South MP David Chapfika has been given a 30-day ultimatum by the High Court to pay back a $336 000 loan to CABS. The Zanu PF legislator acquired the loan using his late brother’s estate as security without the knowledge of the estate beneficiaries.
The Parliamentary Portfolio Committee on Budget and Finance chairperson, who has been accused of abusing his position, had been appointed executor dative in the estate of his brother, the late Netsai Robson, who passed on in South Africa sometime in January 2012. However, in a bid to serve his personal interests, the MP misrepresented to his brother’s wife, Theresa and fraudulently acquired a $280 000 loan from the bank while using the estate’s property as collateral.
The legislator’s shenanigans came to light when Theresa came under pressure from creditors and was forced to dispose of some of her assets, which included motor vehicles and furniture in a bid to clear the debts only to discover later that there was another huge debt at CABS.
After making investigations, Theresa discovered the MP had gone behind her back and acquired a loan, which apparently he was failing to service.
Theresa’s discoveries prompted her to approach the High Court seeking to have Chapfika removed from being the estate’s executor dative and the matter was heard before Justice Joseph Musakwa on Wednesday this week and he ruled in her favour.
“The appointment of the first respondent (David Chapfika) as the executor dative in the estate of the late Netsai Robson Chapfika be and is hereby set aside and the letters of administration issued to him revoked,” he ordered.
“All amounts advanced to the first respondent, inclusive of any interest and other charges, on the security of the property known as Stand No 12468 Township of Salisbury Township lands is paid by the first respondent to the third respondent (CABS) within 30 days of the granting of this order.
“The first respondent pays the costs of this application on an attorney and own scale.”
According to court papers, upon being appointed executor dative, David prepared an inventory which included the pair’s matrimonial home, but later agreed with Theresa to acquire a $20 000 loan from the bank which money was to cater for Theresa’s child’s fees and servicing other debts.
Theresa told the court because she was under pressure from creditors, she was forced to sell some of her assets, which included motor vehicles and furniture, but it was not enough.
“It was during this period that the first respondent (David) proposed that we borrow $20 000 of which $10 000 would be used to send my daughter to school and the balance used to settle the estate debts,” she said.
She said the MP later transferred $10 000 to her, which she believed was to cover for her daughter’s school fees, in the hope that the parliamentarian had paid some of the money owed to creditors.
“I became aware that the first respondent had not paid the creditors when they continued to hound me for payment. It was when I followed this up that I discovered that first respondent had, in fact, borrowed $280 000 plus $56 000 from CABS,” she said.
Theresa further said she later discovered the loan had been acquired on behalf of a company called Racewin Trading (Private) Limited which had nothing to do with her and the estate.NEWSDAY