Former Energy minister Samuel Undenge has been taken to the High Court by CBZ Bank Limited over a US$121 062 debt.
CBZ Bank Limited recently issued summons against Undenge, who is yet to respond to the litigation. According to CBZ, Undenge approached the financial institution on November 12, 2009 and was offered a loan facility. The amount given to Undenge did not exceed US$48 000. Undenge and CBZ agreed the working capital facility would expire on April 30, 2010 and the input facility on June 30, 2010.
As part of the agreement, the bank reserved the right to give notice of any alteration in the rates of interest and thereafter the bank would be entitled to charge such other rates as it may prescribe.