Ex-Finance minister cornered over $366,000 debt

Ex-Finance minister cornered over $366,000 debt
Published: 07 March 2018
FORMER deputy Finance minister David Chapfika has been taken to court over $366 000 debt owed to Cabs.

The bank is seeking a default judgment against the former Zanu-PF legislator.

According to court papers, Chapfika secured the loan in 2011 using his late brother's estate but failed to service the debt, prompting the financial institution to approach the court for recourse.

Last week, Cabs recoveries manager, Collins Chikukwa, filed a court application seeking a default judgment against Chapfika and his wife, Abina together with their company Racewin Trading. Chikukwa said the family had breached the terms and conditions of the credit facility and had also failed to defend the litigation.

"I am advised that in terms of Rule 50 of the High Court rules, a defendant who fails to enter appearance to defend within the prescribed 10 days is deemed to have been barred. The defendants were, thus, barred for failure to timeously enter appearance to defend in this matter," he said, adding the matter has been set for hearing today.

According to court papers, Cabs is demanding $366 014, after it advanced the credit facility to the Chapfikas and their firm in October 2011 and it was a term of the facility that Racewin, through Chapfika, would provide surety for the loan, which he did.

"On November 6, 2013, the first defendant caused surety mortgage bond number 3876/2013 to be registered in favour of the plaintiff, against the immovable property known as certain piece of land situate in the district of Salisbury called stand 12468 Salisbury Township of Salisbury Township Lands measuring 1226 square metres … as further security for the amount of $100 000 …," the bank said.

"It was a term of the facility that interest would accrue on the first defendant's indebtedness to plaintiff at the rate of 10% per annum capitalised monthly on the first day of each month until the date of payment in full and the plaintiff was entitled, at any time on the provision of the notice to the defendants, to increase the rate of interest payable under the facility."

Chapfika also agreed to pay monthly instalments towards the repayment of the first loan between January and September 2014, while the other transaction was to run between January 2014 and September 2016 but failed to do so.
- newsday
Tags: Finance,


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