Legislator loses assets

Cde Porusingazi

Cde Porusingazi

Daniel Nemukuyu Senior Court Reporter
CHIPINGE South legislator Cde Enock Porusingazi’s farm equipment and vehicles worth $99 000 have been attached over an outstanding loan with Interfin Banking Corporation Limited.

Cde Porusingazi entered an agreement with the bank which resulted in hundreds of thousands of dollars being extended to him in batches, but failed to fully service the loan.

By February 11 2011, he had partly paid back the loan but left a balance of $80 024 plus interest.

Interfin Bank, through Mr Raymond Nembo of Sawyer and Mkushi law firm issued summons against the politician at the High Court.

Justice Owen Tagu in 2014 ordered Cde Porusingazi to pay $94 371 plus interest calculated at the rate of 15 percent per annum from July 2013 to date of payment in full.

A writ of execution was obtained against Cde Porusingazi and property was attached at the politician’s Middle Sabi farm in Chipinge.

The property include:

Combine harvester (wheat) serial number 580R205763

Tractors x3

Ford Everest (ACY3330)

Mercedes Benz (ACI 1667)

Toyoace Truck (ADG 9684)

When the property was attached, Cde Porusingazi engaged the bank for a settlement and managed to stop execution.

The property remained under judicial management for some time, but no payment has been effected.

Interfin Bank’s lawyers last week instructed the Sheriff to remove the attached property and take it for auctioning.

“Proceed to remove and auction the first and second judgment debtors’ (Cde Porusingazi and wife Joyline) property situated at Lot 33 AB, Middle Sabi, Chipinge.

The lawyers have since transferred $1 500 into the Sheriff’s bank account for use in ferrying huge machinery like combine harvestors and tractors to the auctioneer.

In January 2011, the parties entered a credit facility agreement in which sums of money were advanced to Cde Porusingazi.

The credit facility was for $275 990.

Under the revolving credit facility, Cde Porusingazi made capital withdrawals of $275 990.

The bank charged total interest in the sum of $9 478 and bank charges to the tune of $623.

That left the total payable amount at $286 092.

As at February 11 2011, Cde Porusingazi had repaid a total sum of $206 067, leaving a balance of $80 024.

Despite demand, Cde Porusingazi and his wife failed to settle the debt, prompting the bank to approach the High Court.

When the property was attached, the debt had ballooned to $99 412 including the Sheriff’s costs.

The total debt could be now in excess of $200 000 including interest.

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  • Cde Mzvinavhu(Prof)

    This legal whirlwind will affect many a chef , who basked in their political clout for years against basic economic or business principles. Some banks were dishing out loans without proper risk analysis. The continued economic nadir has also created wider systemic risk beyond control. Attaching assets in a depressed market will not give any significant value recovery in favor of the creditor. No buyers for the attached assets. Exposed “new bank banks “, have started using their financial funeral policies to the graves. Many are already resting in peace.

    • Fred Moyo

      What can a bank manager do when put under duress to approve the loan by ZANUs?

    • zimbotry

      If a ZanuPF connected person asks for a loan then it would be a brave Bank Manager to refuse. Sanctions again by our own people on our people.

  • #BRING BACK OUR FLAG

    THE MP should lead by example by paying back the money. what will the people learn from such leaders

  • Dzimbahwe Chivavarirwa

    How did the MP acquire the combine harvester in question. Did he not get
    it under the RBZ Farm Mechanization Program? If so then it must not be
    attached and auctioned because it is government property which the
    general masses of Zimbabwe were forced to pay when government adopted
    the RBZ debt. However, if there is an authentic receipt that show where
    and how much the combine Harvester was bought, then no objection Mr
    Sheriff.