×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

UBM loan guarantor’s house faces hammer

News
UNITED Builders’ Merchants (UBM) loan guarantor businessman Elias Hwenga and his wife Mercy, have lost a bid to protect their upmarket house in The Grange area, Harare from being auctioned over an FBC Bank loan.

UNITED Builders’ Merchants (UBM) loan guarantor businessman Elias Hwenga and his wife Mercy, have lost a bid to protect their upmarket house in The Grange area, Harare from being auctioned over an FBC Bank loan.

BY CHARLES LAITON

The couple’s application for stay of execution was dismissed by the High Court.

According to the court papers under case number HC4645/18, Elias and his wife in August 2013, signed as guarantors for UBM which at the time obtained a medium term loan facility of $937 000 from FBC Bank.

The couple reportedly surrendered title deeds for stand number 309 The Grange Township held under deed of transfer number 27261/2002, Harare, valued at $350 000 and at the same time, one Prince Nyemba also surrendered his Borrowdale property stand number 24 Winchendon Township Lot D of Borrowdale held under deed of transfer number 9730/2003 valued at $350 000.

When the Hwengas and Nyemba surrendered their properties as surety, another company called Exports of Africa (Pvt) Ltd, also surrendered stand number 62 Luna Township of subdivision K of section 4 Borrowdale Estate held under deed of transfer number 8011/1998 but the bank did not seek to attach its property until September 18, 2018.

In recent summons issued against Exports of Africa, FBC Bank said in terms of the written guarantees, the guarantors (Elias, Mercy, Nyemba and one Kenneth Schofield) bound themselves as UBM’s guarantors for the due and punctual performance by UBM of all its existing and future indebtedness to the bank.

“UBM defaulted on its obligations and plaintiff (FBC) instituted proceedings against sureties/guarantors claiming the payment of $1 141 260, 36 interest at the rate of 35% per annum reckoned from April 1, 2014 including declarations that the immovable properties… are specially executable… by error rather than join the defendant (Exports of Africa) as a party, plaintiff (FBC Bank) sued only the other guarantors…” the bank said in its declaration.

“The principal obligation having been established by judicial decree and the accessory obligations having been pronounced upon in proceedings in which all issues were exhausted; plaintiff is entitled to an order specifically declaring that defendant’s immovable property is executable.”

The matter is still pending against Exports of Africa.