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Mr Chihota, a former Deputy Minister of Industry and Commerce, owns Wallace Laboratories, a cosmetics manufacturer which borrowed money from ZB Bank and the Infrastructure Development Bank of Zimbabwe (IDBZ) for recapitalisation.

ZB Bank is owed US$350 000 while the cosmetics manufacturing company owes the IDBZ US$50 000.
Duly instructed by the Sheriff of the High Court of Zimbabwe, the banks — ZB Bank and IDBZ — have instructed GMP Real Estate to sell by public auction a large industrial complex as well as a house in Waterfalls to recover the loan.

The industrial building, which comprises warehouses, factory, double-storey office block and research block and is situated at No. 4 Plymouth Road in Southerton, will be auctioned by ZB Bank. The three-bedroomed house with a lounge, dining-room, kitchen, single garage, walled and gated, which is at No. 56R Malvern Road in Waterfalls, will be sold to recoup US$50 000 owed to IDBZ.
The auction is a culmination of a legal battle between the two banks and Mr Chihota after the financial institutions extended some loans to his company, Wallace Laboratories.

According to the lawsuit, ZB Bank alleged that Mr Chihota’s company entered into a revolving financial agreement that resulted in the bank lending him US$350 000 in September 2009.
The loan, which was supposed to have been fully paid on March 31 this year, was attracting an annual interest rate of 6 percent while defaulting would attract an interest at the bank’s overdraft rate from time to time. ZB claimed that by April 1 this year, the House of Assembly Member had not yet paid the outstanding amount of US$435 574,82.

Of that amount, US$343 517,74 is capital, US$78 443,41 interest and the balance of US$13 613,67 being bank charges.
IDBZ proved that an agreement was entered with Mr Chihota’s company in which the financial institution agreed to lend him US$50 000 as a loan. Mr Chihota was given the money in October last year that was to be repaid within 30 days after accruing interest of 6 percent per annum.

By March this year, the arrears were in the sum of US$65 488,82 of which US$50 000 is capital, US$15 021,32 interest and US$467 bank charges. The auction of the two properties will be conducted on October 22 at a city sports club.