Former Zimbabwe National Road Administration (Zinara) board chairman Albert Mugabe has approached the High Court seeking to save his property which is about to be auctioned off by the Sheriff to recover over $47,739 which he owed liquidated financial institution, Interfin bank.
The debt is from 2009.
The order compelling him to settle the debt was granted by Justice David Mangota on November 2, 2015, but Mugabe has failed to clear the debt to date.
In a High Court application made on Tuesday, he notified the court that he had a payment plan negotiated with the bank and insisted that he was not in default.
He accused Interfin’s judicial managers of instructing the Sheriff to execute the writ.
“Interfin Bank issued summons against me claiming $33,445 capital amount, $14,200 interest and $65 bank charges. They then obtained an order in default on May 2, 2015,” Mugabe said in his founding affidavit.
“I then negotiated with the bank to pay the money and since then I have been paying the money. However, despite that we agreed that I pay the money of which I am paying, Interfin went on to execute the writ and has since instructed the Sheriff to execute the writ who went on to attach goods.”
On December 4, 2009, the bank entered into an agreement in terms of which it extended to Mugabe a revolving credit facility of up to $50,000.
Mugabe made capital withdrawals of $33,445. The bank charged total interest of $14,229 together with bank charges of $65 bringing the total amount owing to $47,739.
The bank says Mugabe defaulted on “making due and punctual repayment” under the agreement as at August 17, 2015.
Since then he had not paid anything towards settling the debt prompting the bank to approach the court.
According to the bank, the agreement was that all accounts outstanding were repayable on or before the expiry of the facility.
“The facility expired on August 31, 2010; Interfin extended to Mr Mugabe a moratorium until December 31, 2014. Mr Mugabe acknowledged liability of the total amount outstanding in October 2014,” the bank said.-Zimlive