Former magistrate in stand wrangle

Court Reporter
A former magistrate has taken a Harare business couple to the High Court seeking to recover $800 000 she had paid in a botched stand deal.

Founder and Trustee of Nemaji Family Trust, Ms Jemina Gumbo, lost the money to Mr Upenyu Mashangwa and his wife Blessing in March 2012.

In summons submitted to the High Court, Ms Gumbo is demanding refund plus interest for the stand in Marlborough, measuring 7 581 square metres, she had bought from the couple.

The couple owns Carmeco Investments Pvt Ltd, which is also being sued. The matter was brought before High Court judge Justice Happias Zhou last month in a bid to thrash an out-of-court settlement, but the parties could not find common ground.

Through her lawyer, Ms Jackie Sande assisted by Ms Yvonne Masvora of Sande and Associates, Ms Gumbo claimed that after signing an agreement of sale, she paid $800 000 to the couple’s account with Macdowells International Properties Investments (Pvt) Ltd.

At the time, Macdowells operated business as a micro-finance and investment company.

The company has since been closed by the Reserve Bank of Zimbabwe and is now under judicial management. According to the summons, “The plaintiff transferred the amount from her own account with Macdowells…and second and third defendants (Upenyu and Blessing) acknowledged receipt of the money”.

In February 2013, Ms Gumbo claimed that the Mashangwas cancelled the agreement of sale, saying they had not received the purchase price from Macdowells, which had been shut down. Ms Gumbo further claimed that she confronted the couple for cancelling the agreement and both parties agreed to terms on how the former magistrate would be refunded her money.

“In terms of the memorandum of understanding, the plaintiff (Ms Gumbo) was to be repaid the purchase price after the defendants had obtained a judgment for recovery of their investment funds from Macdowells account,” she said.

But after the couple obtained the judgment for the payment of more than $1,6 million from Macdowells, it stopped communicating with Ms Gumbo, reneging on the promise to honour its obligation.

“The defendants have no right to hold on to the purchase price as they recovered their immovable property, while the plaintiff was prejudiced of her money in the amount of $800 000,” said Ms Gumbo.

She further stated that despite demand on several occasions, the Mashangwas were not willing to refund her. The matter, which is still at the pre-trial stage, will require the judge to determine if the couple received the $800 000 as the purchase price of the property in question.

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