HomeLocal News‘Loan shark’ bites Goche

‘Loan shark’ bites Goche


Transport and Communications minister Nicholas Goche has been sued by a local company, Zimcor Trustees Limited, owned by businessman and alleged loan shark Frank Buyanga, over an unpaid loan of $70 000.

According to court documents shown to NewsDay, Goche borrowed the money on August 28, 2009 but allegedly failed to pay back within the agreed time.

Police at the weekend said they had applied for an international warrant of arrest against Buyanga for alleged fraudulent seizure of about 500 immovable properties in Harare through an opaque loan scheme where the borrower would sign an agreement of sale and repay the principal loan and interest within three months.

But some of the people who accused Buyanga of seizing their properties later made a U-turn, saying they had instead sold their houses and stands to the property mogul.

Buyanga insisted his activities were above board and that he was a victim of a conspiracy by the multitudes of his debtors.

In the court case, Zimcor Trustees accused the Zanu PF minister of having “failed, refused or neglected to fulfil his obligation after obtaining the loan thereby committing a breach of contract” which prompted the company to file a civil suit in a bid to force him to pay.

According to documents at hand, the Shamva North MP was served with the summons on December 16 last year under case number HC 12493/11, after he failed to settle the loan obtained from Zimcor Trustees on August 28, 2009. Part of the summons reads:

“The plaintiff claim for an order for specific performance compelling defendant to repay the loan in the sum of $70 000 plus interest a temporae morae (from the date of default) on the whole amount, from date to final payment in terms of the draft order attached hereto.”

According to the summons, Goche pledged a piece of land as surety for the loan for which the company was now applying for an order compelling that the pledged property be executable.

Part of Zimcor’s declaration reads: “As security to the loan, the defendant left in the custody of plaintiff a pledge of certain immovable property, namely a certain piece of land in the District of Salisbury (now Harare) being Stand 3404 Salisbury Township of Salisbury Lands, measuring 3 491 square metres under deed number 0010422/2002 owned by defendant and Power of Attorney to pass transfer was duly signed.”

Zimcor Trustees stated the loan would attract interest at the rate of 5% per month for three months.

It also said in terms of the loan contract, it was agreed Goche would make intervals of regular repayments every month in instalments of interest in addition to set up charges at $3 500. He would also make repayments of interest accrued for two months.

Zimcor Trustees further stated: “At the end of the third month, the defendant would then make a repayment of the capital sum and interest accrued for that month which amounted to $73 500 which the defendant despite demands has failed, refused or neglected to fulfil his obligation thereby committing breach of contract.”

Zimcor Trustees also stated it wanted the minister to pay damages in the sum of $500 per month from November 2009 to date, being the reasonable rent which it would have realised had the premises been let.

“The plaintiff also prays for an order that defendant be ordered not to dispose of the property pledged as security to the applicant until the loan amount is fully paid together with interest,” the company submitted.

Zimcor Trustees is represented by Nyika Legal Practitioners while Mudambuki and Associates are representing Goche.

On December 21, 2011, the Zanu PF politician entered an appearance to defend notice at the High Court. Zimcor Trustees is yet to file notice to plead and intention to bar papers at the High Court.

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