By GRACE CHAILE LESOETSA
CHITA Lodge Limited director James Chungu, has disputed claims by Development Bank of Zambia (DBZ) that the company owes about K97 million in a loan facility.
Mr Chungu has submitted to the Lusaka High Court that the company has paid a total of K 26,746,302.40 from the total disbursement of K24, 825,268.82.
He argues that the claim of K97, 907,282.31 on a facility of K24, 825,268.82 is a violation of the provisions of the Banking and Financial services Act, 2017.
In this matter, DBZ has sued Chita lodge, Mr Chungu and another shareholder, Babsie Bulaya over an unpaid debt of K97 million.
DBZ is seeking interest on the amount due of K97, 907,282.31 as at October 25 this year.
It also seeks an order of possession of the properties namely, stand no.3705, Lusaka, stand no.1450, Samfya and Subdivision no.21 of farm no.484a, Lusaka.
DBZ wants an order of foreclosure of the mortgaged properties and that the same properties are put on sale.
It wants the court to order Mr Chungu and Bulaya as guarantors to pay the said amount.
But in an affidavit in opposition, Mr Chungu submitted that amount owing ought to have been based on the amount disbursed plus interest up to the point that the loan became none performing as per Banking and Financial Services Act.
“I aver that the letters of demand do not reflect entries in the Client Loan Statement which is exhibited as “ GL 22”, According “ GL 20” which is dated 30th February ,2019 the amount demanded is ZMW33,178,889.39 and yet the entry in the statement during the said period shows the sum of ZMW76,512,019.11. That further the demand in GL 21” which is dated 30 the March , 2020 the demand is again K33,178,889.39 but the entry during the same period is K94,129,189.00.
“That further to the foregoing, the demand letter of 29 the June, 2021 which is exhibited as “GL 19” is in the sum of K 98,557,282.00 which figure is more than twice the amount of the previous demand letter which was only one year four months prior,” he stated.
He submitted that there was need for the parties to carry out a reconciliation exercise to determine exactly how much is owed given the discrepancies.
Mr Chungu stated that the matter warranted reconciliation and not invocation of clause II of the facility letters.
Clause II states that the applicant is entitled to payment of the full amount of the loans and all interest and charges outstanding thereon if Chita Lodge fails to make payments by the due date of any amount due and owed to the applicants.
