by TZN Correspondent
PRESIDENT Robert Mugabe’s ZANU PF party has abandoned its activist, Luscious Chitsinde, who masquerades as Chief Negomo, after it facilitated a US$160 000 loan from CBZ Bank as a thank you for his role in harassing former Prime Minister, Morgan Tsvangirai, for allegedly violating local traditions by paying lobola for his girlfriend, Locadia Karimatsenga Tembo, in November 2011.
Chitsinde made headlines in December 2011 when he tried to drag Tsvangirai to his court for marrying Karimatsenga-Tembo in the so-called sacred month of November.
Although the case caused embarrassment to Tsvangirai, the former premier later won the case, but not before Chitsinde had been rewarded by ZANU PF through a CBZ Bank loan that he is now facing civil imprisonment for after failing to repay it more than three years later.
CBZ, a bank in which the government is the majority shareholder, is run like a family kiosk for ZANU PF members who are allowed to borrow without any collateral.
It was the same case with the loan to Chitsinde who told the High Court that he had no assets worth attaching to settle the loan, but was curiously allowed to borrow from the bank.
A source close to Chitsinde said the “chief” feels used by the party, after it abandoned him when he had succeeded in causing considerable embarrassment to President Mugabe’s chief nemesis.
“He did not apply for that loan, but it was offered to him and he had no idea what to do with the money and he squandered most of it,” the source said.
“He only used a small portion of it to fight his legal battles against Tsvangirai and he was assured that he did not have to repay the loan since CBZ is owned by the government, but he was surprised when the bank started pursuing him over the loan and the party did nothing to stop the bank from embarrassing him,” the source said.
Chitsinde received the loan at the beginning of 2012, just weeks after he had made a show of dragging Tsvangirai to his traditional court. Tsvangirai resisted the Chitsinde’s spirited efforts resulting in a protracted legal battle that he eventually won. After that, ZANU PF left Chitsinde at the mercy of the bank which started hounding him, resulting in a December 6, 2012 High Court order for him to pay the $159 211, 08 plus costs.
Chitsinde has over the years struggled to repay the loan, reducing it to $147 000 for which he is now facing a three months jail term.
The source said it was clear from the figures before the courts that the ZANU PF “chief” was given an interest-free loan without any collateral through party orders, because had standard bank interests accrued, the figure would have more than doubled over the three year period.
The source said the so-called foreign investor, Hermes Capital, which Chitsinde claims will come on board to liquidate the debt does not exist. If anything, he is awaiting ZANU PF to order CBZ to write off the debt.
A High Court order for Chitsinde’s imprisonment dated November 25 this year reads: “It is ordered that the defendant is sentenced to civil imprisonment for 90 days. The defendant shall pay costs of the suit at attorney-client scale,” ruled Justice November Mtshiya.
Chitsinde of Watchfield Farm in Mazowe, entered a loan agreement with CBZ in 2012 for $159 211 which he received. He however, breached the loan agreement after failing to pay back within the agreed timeframes prompting the bank to issue out summons at the High Court.
After the latest court ruling ordering his imprisonment, Chitsinde filed an urgent court application to stay Justice Mtshiya’s ruling. He also indicated that he had since filed an application for rescission of the December 2011 judgment three years later, something that is unusual in normal court proceedings. Chitsinde claimed he had not been properly served with the summons for civil imprisonment and that he was seeking rescission on that basis.
However, another High Court judge, Justice Jester Charewa, early this month entertained Chitsinde story and went on to give him 60 days to sort out his issues. “Attachment of the applicant (Chief Negomo) is stayed for 60 days. Applicant to complete negotiations for the takeover and liquidation of his debt by Hermes Capital within 60 days. Applicant to pay $1 000 per month with effect from 31-12-15 until the successful conclusion of the negotiations with Hermes Capital,” ruled Justice Charewa.
“He is now engaging the party to ensure that the case dies a natural death. What I can assure you is that he (Chitsinde) will not repay the loan and he will not go to jail,” the source added.
