THE Supreme Court yesterday ordered South African-based Zimbabwean Daniel Makgatho, to reimburse a 201 000 rand scholarship paid by Old Mutual Life Assurance towards his son Fortune’s education.
BY CHARLES LAITON SENIOR COURT REPORTER
The ruling came after Makgatho challenged High Court judge Justice Samuel Kudya’s 2006 judgment which was in favour of the insurance firm.
Justice Kudya had ordered Makgatho to compensate Old Mutual in the sum of R201 750,08 and Z$121 518,64 as fees, airfares and other allowances spent on Fortune’s academic requirements while at the University of Cape Town.
Sitting as a court of appeal, Justices Bharat Patel, Elizabeth Gwaunza and Paddington Garwe unanimously dismissed Makgatho’s appeal, adding the full reasons of the court’s decision would follow in due course.
Fortune was bonded by the company and sent to the University of Cape Town where he studied for a Bachelor of Science degree in Actuarial Science and he was supposed to come back to Zimbabwe and work for Old Mutual for four years after which he could be allowed to leave.
Fortune commenced his studies in Cape Town after entering an agreement with Old Mutual and as part of the agreement he was expected to excel in the key actuarial science courses with at least an upper second class pass while there were no conditions on the other subjects.
The court heard failure to meet the conditions would result in Old Mutual withdrawing the scholarship.
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Fortune’s father Makgatho signed the agreement as surety and co-principal debtor before surrendering his Kwekwe house as surety.
According to the company, Fortune failed to perform to expectation by getting lower grades in some of the main courses resulting in the company withdrawing the scholarship.
The company contends that when Fortune completed his degree programme, he was supposed to return to Zimbabwe and work for Old Mutual with effect from 2001, but failed to do so, thereby breaching the contractual agreement.
In the Supreme Court appeal, Makgatho had argued that he was never informed of his son’s unsatisfactory performance that led to the withdrawal of the scholarship, adding that it was Old Mutual that breached the agreement.
Meanwhile, High Court judge Justice Joseph Musakwa is today expected to deliver a bail ruling in a matter in which three Navistar Insurance Brokers bosses are accused of swindling Air Zimbabwe of over $8 million through an insurance scam.
