ZANU-PF legislator and businessman Philip Chiyangwa’s two sons, Edmund and Brian, have been taken to the High Court by Getbucks Microfinance Bank Ltd for failing to repay an $800 000 loan advanced to their company in February this year.
The brothers risk losing their upmarket Grange property in Harare which was registered as surety for the loan.
The financial institution recently filed summons against Edmund and Brian Chiyangwa alongside World Grain (Pvt) Ltd and Padley Enterprises (Pvt) Ltd.
The Chiyangwas are also set to lose their Harare property, stand number 712 the Grange Township of subdivision C of the Grange, measuring 2 4076 hectares held under title deed number 4212/2013, which they surrendered as surety for the bank loan.
In its declaration, Getbucks said it entered into an agreement with the two on February 26, 2019, whereupon it extended $600 000 to World Grain, a company in which the two sons stood as sureties and co-principal debtors.
“In terms of the credit agreement between the parties, the plaintiff (Getbucks) has a right to demand payment of the whole amount due under the loan facility in the event of the borrower failing to make payments on the due date or operating its account with the plaintiff in an unsatisfactory manner that exposes the plaintiff to possible loss or prejudice,” the micro-finance firm said.
“In breach of the loan agreement, the first defendant (World Grain), has failed to pay the principal and interest on the loan facility on due dates resulting in arrears of $846 041,52 accruing as at November 7, 2019,” Getbucks said.
The firm further said upon signing the agreement, Edmund and Brian undertook to pay legal practitioners’ collection commission and legal costs on the legal practitioner and client scale, adding that it was also part of the agreement that interest would accrue at the rate of 4% per month and a penalty rate of 15% per annum would be levied in the event of a default.
According to Getbucks, World Grain had made an undertaking to settle the balance by October 31, 2019, but failed to do so.
Getbucks is also seeking an order for The Grange property that was pledged as surety to be declared executable.
World Grain and Chiyangwa’s sons are yet to enter appearance to defend.-Newsday