FORMER Finance deputy minister and Mutoko South legislator, David Chapfika (Zanu PF) and his estranged wife Abina, have been taken to court by CABS over their company, Racewin Trading’s $366 000 debt.
BY CHARLES LAITON
According to the building society, Chapfika and Abina, who have since filed for divorce, bound themselves as sureties and co-principal debtors of a loan they acquired through Racewin Trading in October 2013.
Chapfika, chairperson of the Parliamentary Portfolio Committee on Budget and Finance, has since filed an appearance to defend notice.
In its declaration, the building society said, in October 2011, it extended $280 000 as loans to Racewin Trading following an agreement the latter would register, through Chapfika, as surety, bond Stand No 12468 Township of Salisbury Township, in his capacity as an executor of the estate of his late brother, Netsai Robson Chapfika.
“In breach of its obligations under the facility, the first defendant (Racewin) failed to effect payment of the monthly instalments due and payable to plaintiff until expiration of first and second facilities, on September 30, 2014 and September 30, 2015, respectively, and as of December 1, 2015, the full amount due and payable by the first defendant to the plaintiff under the facility was $366 014,” the bank said.
“The second and third defendants (Chapfika and Abina) duly bound themselves as sureties and co-principal debtors for the due and timeous fulfilment, by the first defendant, of its obligations to plaintiff in terms of the surety and the Notarial General Covering Bond, as fully appears in the deed of suretyship executed by the second and third defendants on October 31, 2013.”
The registration of his late brother’s house as surety, however, has seen Chapfika coming under fire from the High Court, which eventually stripped him of his executorship after it emerged he had surrendered the property “fraudulently” according to his late brother’s wife, Theresa.
As if that was not enough, Chapfika was last month given a 30-day ultimatum by High Court judge, Justice Joseph Musakwa to pay back the $336 000 loan to CABS.
The legislator, who has been accused of abusing his position, was the appointed executor dative in the estate of his brother, who died in South Africa in 2012.
However, in a bid to deal with his personal interests, the MP misrepresented to his brother’s wife, Theresa, and fraudulently acquired a $280 000 loan from CABS using the estate’s property as collateral.
The legislator’s shenanigans came to light when Theresa came under pressure from creditors and was forced to dispose of some of her assets, which included motor vehicles and furniture in order to clear the debts, but later discovered there was another huge liability at CABS.
After making thorough investigations, Theresa discovered that Chapfika had gone behind her back and acquired the huge loan, which, apparently, he was failing to service.
Also in the divorce application, Abina urged the court to order that she be awarded 50% shares in Racewin Trading, also known as Hurudza Farm in Shamva and a lifetime use of the 200 hectares of the farm, which she personally developed.