Thursday 12 September 2019

EX MINISTER'S PROPERTY ATTACHED


FORMER Sport, Arts and Recreation Minister and Member of Parliament for Mberengwa East Makhosini Hlongwane’s property is set to be auctioned over a debt of more than US$36 000 for a vehicle and asset finance facility.

Hlongwane’s property which is set to go under the hammer includes a Mitsubishi Canter truck, an assortment of industrial baking equipment, trolleys and a water chiller.

The property is set to be auctioned today in Zvishavane by Lewton Auctions after it was attached by the Sheriff of the High Court following Hlongwane’s failure to settle a six-year old debt. 

Hlongwane was in 2017 taken to the High Court in Harare by Stanbic Bank over a $36 801 vehicle and asset finance facility debt, which he failed to repay.

On August 29, 2017, Stanbic Bank filed summons under case number HC7958/17 through its lawyers, Danziger and Partners, citing Hlongwane, his company, Carat Investments (Pvt) Ltd, which has since been placed under liquidation and one Adrian Hastings Kaira, as defendants.

According to court papers, sometime in June 2012, Stanbic Bank entered into an agreement, lent and advanced US$30 000 to Carat Investments under a vehicle and asset finance facility.

As security for the due repayment of the loan, it was stated that Hlongwane and Kaira stood as sureties and co-principal debtors for their company undertaking to pay legal practitioner’s collection commission and costs of suit on the legal practitioner and client scale and also renouncing the benefits of execution and division. 

The bank further said under the credit facility signed between the parties, default interest would accrue on overdue payments at the rate of 34 percent per annum from the date of default to the date of full and final payment.

“Carat Investments (Pvt) Ltd breached the credit agreement signed with the plaintiff by failing to repay the facility loan which expired on June 30, 2013.

“In fact, the company has since been placed under liquidation by the High Court owing to its inability to pay its creditors,” Stanbic said.

“Despite demand on July 3, 2017, the first and second defendants (Hlongwane and Kaira) have failed, neglected and/or refused to settle the debt owed by their company, which stood at $36 801,28 as at March 29, 2015,” said the Stanbic Bank lawyers. Chronicle

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