Chegutu West MP, Dexter Nduna, is set to lose his Badon Farm along Chakari Road in Chegutu after Standard Chartered Bank filed an application for a sequestration order in a bid to recover a $231 171 loan the Zanu PF legislator is allegedly failing to repay.
BY CHARLES LAITON
The financial institution filed the court application which is set to be heard today before High Court judge Justice Mary Zimba-Dube in motion court.
In the application, Nduna, who is also the chairperson of the Parliamentary Portfolio Committee on Transport and Infrastructure, is cited along with his wife, Scholastica.
In his affidavit, Standard Chartered Bank’s head for retail clients, Harton Maliki, said in 2011, the bank obtained a judgment for provisional sentence against the couple and their company, Badon Enterprises, amounting to $231 171,60 with interest, which was eventually registered as a final order in September 2015.
Maliki further said the bank was, however, in possession of security against Dexter with an open market value of only $35 000 and a forced sale value of $22 750, which amount, if realised, would be insufficient to offset the outstanding debt.
“Respondents (Ndunas) have never made any payment to the applicant (bank) and have failed to liquidate the amount due to the applicant… In view of the respondents’ inability to satisfy the said judgment debt, they have committed an act of insolvency within the meaning of section 11 (b) of the Insolvency Act,” Maliki said.
“The applicant is surprised that the respondents are unable to liquidate the said debt as it understands that the respondents operate a farming enterprise from Badon Farm, Chakari Road, Chegutu, and should be in a position to meet their obligations. In addition, the 1st applicant is a Member of Parliament and receives allowances therefrom.”
Maliki added: “The applicant submits that it would be in its interest and in the interest of any other creditors of the respondents that their Estate be sequestrated and for a Trustee to be appointed to investigate the respondents’ financial affairs to ascertain whether the respondents’ affairs have been carried out properly and that they have not disposed of their assets in such a way as to create undue preference to certain of the creditors and to the detriment of the applicant.”
The bank also said it had identified Winsley Evans Militala of Petwin Executor and Trust Co, who had indicated his willingness to accept appointment as a Provisional Trustee.