HARARE - Central Africa Building Society (CABS) has dragged ex-finance minister and Zanu PF Mutoko South MP David Chapfika to court over a loan repayment delay.
In the application, CABS cited Chapfika, his company Racewin Trading (Private) Limited, and his wife Abina as respondents.
Chapfika is also cited as a respondent in his official capacity as the executor of his late brother Netsai Robson Chapfika’s estate.
According to court papers, CABS is demanding $366 014 following a loan advanced to Chapfika in October 2011.
It was a term of the facility that the company through Chapfika was to provide surety for the loan.
“On the 6th of November 2013, the first defendant (Racewin Trading) caused Surety Mortgage Bond number 3876/2013 to be registered in favour of the plaintiff (CABS), against the immovable property known as certain piece of land situated 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 court heard.
Chapfika was also to provide further security in the form of equipment and stock.
“It was a term of the facility that interest would accrue on the first defendant’s indebtedness to plaintiff at the rate of 10 percent 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,” the court heard.
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 last year.
According to court papers, Chapfika failed to pay the monthly instalments until the expiration of the agreed timeframe within which to repay the loan.
Meanwhile, Chapfika, who is being divorced by his wife over adultery allegations, was ordered by the High Court to pay back the money, after his late brother’s wife Theresa, applied to have him removed from being the executor of her late husband’s estate.
Theresa accused Chapfika of abusing the estate by borrowing money, which he secured using her late husband’s estate.
High Court judge Joseph Musakwa granted the order in December last year.
In the present case, Chapfika is still to fully respond to the bank’s claim, but has since filed an appearance to defend the suit.