Finance Bank commences bankruptcy process against Maureen

Finance Bank commences bankruptcy process against Maureen

By GRACE CHAILE LESOETSA

FINANCE Bank Zambia Limited has commenced bankruptcy proceedings against former First Lady Maureen Mwanawasa for alleged failure to settle a debt amounting to over K7 million.

The bank contends that Dr Mwanawasa has no reasonable prospects of being able to pay the said amount, thus should be declared bankrupt.

In this matter, Finance Bank on Friday filed a Creditor’s Bankruptcy petition in the Lusaka High Court following the former First Lady’s inability to settle K6, 753, 546.76 and K892, 831.99 under a facility agreement dated March 14, 2013.

On June 11, 2019, a consent judgment  was entered in an action instituted by the bank v Mipachima Farms Limited v Former First Lady  in which it was agreed that Ms Mwanawasa would pay back the debt in instalments together with costs.

“The debtor is justly indebted to the applicant in the sums of K6, 753, 546.76 and K892, 831.99 together with costs in the sum of US$25, 000,” it has stated.

Finance bank states that on September 3, this year, a notice of bankruptcy was served upon her in respect of the amount in question.

The bank added that it holds no security for payment of part of the said sum.