Finance minister sues Farmers World for over $1,2 million

By The NewsDay | Feb. 10, 2016 | 2 Min read

Finance and Economic Development minister Patrick Chinamasa has approached the High Court seeking to compel Farmers World Holdings to repay the over $1,2 million loan advanced to the agro-equipment supplier six years ago.

BY CHARLES LAITON

Chinamasa filed summons at the High Court last month under case number HC827/16 and Farmers World has since entered an appearance to defend notice, thereby preparing a grand stage for a court battle over the claim.

In the declaration attached to the summons, the Finance minister is cited as the applicant while Farmers World Holdings is cited as the respondent.

Finance and Economic Development minister Patrick Chinamasa.

According to Chinamasa, the Ministry of Finance, through the National Development Fund, extended a $970 000 loan to Farmers World sometime in March 2010.

The said loan, according to the Finance minister, was a repayment for phase one and two of the Concessional Loan Agreement (2008) from Eximbank of China which had originally been granted to Farmers World by the Reserve Bank of Zimbabwe (RBZ).

The minister further said Farmers World’s failure to service the loan had prompted the locking of further funding from the RBZ meant for other institutions and, as such, the Ministry of Finance was forced to move in and service the debt on its behalf.

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“Since the servicing of your debt by the plaintiff [Minister of Finance and Economic Development], you the defendant [Farmers World Holdings] have only managed to make two separate repayments of $3 000 each on June 27, 2012 and August 10, 2012 respectively. There has since been no other payment by yourselves as per the agreed payment plan with the fund,” Chinamasa said.

“Consequently, the outstanding debt that you owe has now risen to $1 282 685, 54 including interest at the rate of 5% per annum.”

The matter is still pending at the High Court.