Fungai Lupande Senior Court Reporter
Former Zimbabwe Football Association (Zifa) president and businessman Philip Chiyangwa’s two sons — Edmund and Brian — are facing an $800 000 lawsuit for failing to settle a debt from Getbucks Microfinance Bank Limited.
The brothers risk losing their upmarket Grange property in Harare which was registered as surety for the loan.
Getbucks is suing Edmund and Brian together with their companies World Grain (Pvt) Limited and Padley Enterprises (Pvt) Limited.
In court papers, Getbucks claims that through a written agreement on February 26, 2019, they extended $600 000 to World Grain (Pvt) Limited.
The two brothers stood as sureties and co-principal debtors.
“Edmund and Brian undertook to pay legal practitioners’ collection commission and legal costs on the legal practitioner and client scale and they also renounced the benefits of division,” read the summons.
“Part of the agreement was that interest would accrue at the rate of four percent per month and a penalty rate of 15 percent per annum would be levied in the event of default.
Getbucks says, in breach of the loan agreement, World Grain (Pvt) Limited failed to pay the principal and interest on the loan on the due dates, resulting in arrears of $846 041, 52 accruing as of November 7, 2019.
The micro-finance company also said the defendants undertook to settle the balance by October 31, 2019 but have failed to do so.
The financial institution is now demanding an order for the payment of $846 041, 52 together with interest at the rate of 87 percent from November 8 to the date of full and final payment.
It is also seeking an order for the property that was pledged as surety to be declared executable, so that it can be sold to offset the debts.