Disability association loses property over K1.5m CEEC loan

Thu, 06 Apr 2017 09:53:45 +0000

By CHIKUMBI KATEBE

ZAMBIA Federation of Disability Movement Organisations (ZFDMO) has lost property at lot 16543/M. Kafue to the Citizens Economic Empowerment Commission (CEEC) which it used as collateral when it acquired a K1.5 million loan from the latter.

In a writ of possession filed before the High Court on 30th March 2017, CEEC has been commanded to immediately enter and take possession of the said premises.

High Court Justice Ireen Mbewe of the Commercial division in her judgment ordered that the disability movement pay K666, 893.96 being the amount outstanding as at January 2016 or lose their property which was used to secure in the loan.

This is in a legal suit over the K1,500,000 obtained by the disability movement as a loan from CEEC, which it  has failed pay back despite a High Court Judgment of 26th December 2016 which ordered a 45 days grace period to settle the outstanding amount a 7 percent interest.

“The Judgment debt shall continue to accrue interest at the agreed rate contractual rate of 7 percent from the date of the writ of summons to the date of the Judgment and thereafter at the Bank of Zambia rate until full satisfaction of the judgment debts,” Justice Mbewe said

CEEC sued the Disability Movement, as 1st defendant, together with the Zambia Federation of Disability Organisation Registered Trustees, Disabled Entrepreneurs Association of Zambia, Dr Charles Mwape and Imutongo Muyoba as 2nd, 3rd, 4th and 5th defendants respectively.

And the court directed that should the amount not be fully paid from the dispose fees of the property in question, CEEC could extend the warrant of distress to the two persons on the writ of summons, that is, Dr Mwape and Mr Muyoba.

“The defendants are hereby given a moratorium of forty-five (45) days within which to settle the judgment debt failure to which the plaintiff shall be at liberty to foreclose, take possession and dispose of the mortgaged property namely lot 16543/M. Kafue by way of sale,

“In the event that the sale of the mortgage property does not or is not sufficient to expunge the debt owing, the plaintiff shall be at liberty to execute on the personal guarantees of the 4th and 5th defendants,” the court said.