CEEC sues client for defaulting  on mortgage agreement

Fri, 23 Dec 2016 08:27:32 +0000

By Chikumbi Katebe

CITIZENS Economic Empowerment Commission has sued Chavuma Development Company and a local farm Kabayi Farming Limited in the amounts K1696 963.65 and US$157 677.26 respectively.

In one suit, director credit control and risk, Nchimunya Monde alleged that by legal mortgage dated 14th April, 2015 between Kabayi Farming Limited together with Dave Amon Kabayi also as mortgagor and CEEC, property on farm No. 1877 was by mortgagor as security in the sum of US$ 745 000 to be repaid at an interest rate of 12 percent per year.

The agreement demanded that the two mortgagees pay CEEC or discharge to the Commission all monies and liabilities for the time being due and owing together with the 12 percent interest.

He said that Kabayi Farming Limited has failed to pay the amount as they never paid anything towards clearing the outstanding amount towards the loan.

He explained that of the total US$ 781, 211.47, which was required to be cleared in installments of US$ 22 525.32, the company has failed to clear an outstanding debt of US$ 157 677.26 since December 2015.

“The mortgagee has not received nor to my knowledge information and belief has any other person by the mortgagee’s order or to the mortgagee’s use received the balance outstanding or any part thereof under the mortgage or anything of value in or towards satisfaction of the sum,” she said.

He said they have failed to pay the remaining balance which has disturbed the flow of projects meant for the empowerment objective as it was a revolving fund for broad based economic programmes which have been frustrated as a result.

And CEEC has dragged Chavuma Development Company Limited and Jerry Muloji over unpaid mortgages on title number 95060 relating to stand No. 151 in Chavuma as security in the acquisition of K1, 033, 929.83.

The company applied for the loan in 2009 with a proposal to purchase six 420 tonnes trucks and would be given K500 000 to pay in installments of K14, 637.81 per month and any default would result in immediate payment in full of the amount with 12 percent interest.

The matter comes before the Lusaka High Court.