Bank takes Pasi to court over unpaid $124k loan

Former Zimbabwe Revenue Authority (Zimra) commissioner-general Gershem Takavada Pasi has been taken to court by a bank over an unpaid $123 987,59 loan facility.


African Banking Corporation of Zimbabwe (BancABC) issued the summons on February 22, 2018 and Pasi is yet to respond to the litigation.

According to the court papers, sometime in January 2014, the bank and Pasi entered into a written agreement where the financial institution extended a $250 000 lease hire finance facility to the latter.

“In terms of the memorandum of the lease agreement, interest on the loan facility was to accrue at the rate of 15% per annum. Further, in the event of defendant (Pasi) defaulting with payment of any of his instalments, interest would be charged at the rate of 25% per annum, being interest of 10% per annum above the normal rate of 15% per annum,” the bank said.

“The defendant defaulted on making due and punctual repayments under the written memorandum of lease agreement and as at February 2018, is in the arrears in the sum of $129 846,26. The said sum of money is made up as follows: $123 987,59 being the capital and $5 858,26 being interest.”

BancABC further said they had agreed that should the former Zimra boss fail to pay instalments of any amount due in terms of the facility, the whole amount would immediately become payable and due.

“Despite demand, the defendant has refused, neglected and/or failed to pay the plaintiff (BancABC) the claimed amount. It was a term of the agreement that in the event of the plaintiff instituting legal proceedings against defendant of any money due hereunder, the defendant would be obliged to reimburse the plaintiff all the legal costs on a legal practitioner-and-client scale plus collection commission,” the bank said.

Do you have a coronavirus story? You can email us on: