NMB Bank has taken Harare mayor Bernard Gabriel Manyenyeni to the High Court seeking to recover a $12 217 outstanding loan.
BY CHARLES LAITON
The bank issued Manyenyeni with summons sometime in October this year, accusing him of breaching the terms and conditions of the loan he obtained in March 2013.
However, the capital city’s mayor has since entered an appearance to defend notice and requested for further particulars from the bank, arguing he never, at any given time, breached the terms of the said loan agreement.
In its declaration, the bank claimed Manyenyeni had, from the date he obtained the loan, paid a total of $18 652,82, leaving a balance of $12 217,44.
According to NMB, on March 21, 2013, it entered into a loan agreement, where it advanced $23 000 to the respondent. The bank said the terms of the agreement were that Manyenyeni was obliged to pay drawn fees charged at 8% subject to a minimum $100.
“The defendant (Manyenyeni) was also obliged to pay interest at the rate of 22% per annum from March 25, 2013, to date of full and final payment. Also due was an amount of 2,5% of the gross loan amount towards insurance,” NMB said
“The defendant was further obliged to repay the total amount advanced to him in 36 equal monthly instalments of $638 starting from March 25, 2013. In the event that the defendant failed to pay any of the instalments on the due date, the plaintiff was entitled to charge interest at the rate of 36% per annum.
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“In breach of the terms and conditions of the loan agreement, the defendant failed to pay the monthly instalments of $638 per month as agreed. The plaintiff demanded payment of the full amount due to it, but defendant has to date failed and/or refused to pay the total outstanding amount.”
In response to the claim, Manyenyeni requested for further particulars, demanding the bank to explain how and when it received payments of $18 652,82 in relation to capital, interest and bank charges.
“Clarity is required in respect of the interest applicable on each of the instalments paid, each component as to interest and capital and the date on which they were paid,” he said.
Manyenyeni also demanded to know when he allegedly breached the terms of the agreement and also when and how demand was made from him and refused and how the outstanding balance of $12 217,44 had been arrived at.
