Financial institution, CBZ Bank Limited has taken Labour and Social Welfare minister Petronella Kagonye to the High Court in a bid to recover $400 000 borrowed by the legislator. The amount includes interest.
Cecilia Shingaidzo Midzi is also cited as a respondent after she allegedly signed for the loan as surety and core principal debtor. The bank alleges that despite several attempts Kagonye had failed to settle the claimed amount. The matter is still pending before High Court judge, Justice Charles Hungwe and was brought last week for a pre-trial conference. CBZ alleges that it signed a deal extending an overdraft facility to Kagonye on May 24, 2011. Part of CBZ’s declaration reads:
The agreement between the parties (Kagonye and CBZ) provided, inter alia, that the plaintiff (CBZ) would loan and advance to the first defendant (Kagonye) an overdraft facility in the total sum of $318 000 to finance the first defendant’s farming operations. The plaintiff would be entitled to charge and debit the defendant’s account with interest compounded monthly on the daily balance owing from time to time, as the rate may be varied from time to time in accordance with the fluctuation in interest rates.
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