Policy Monitoring and Research Centre executive director Bernadette Deka has opposed an application by Vyansilati Enterprises Limited to enter judgement on admission in a matter where the company is claiming K2.6 million from her.

In this matter, Vyansilati Enterprise sued Deka for failing to pay K2,675,000 which she borrowed and wants her to pay back the said sum at 15 percent interest per week from the date of default, being April 27 this year, until the date of the writ.

Vyansilati Enterprise wants the court to enter judgement by way of admission for the sum claimed and admitted by Deka, together with interest and costs from the date of the exhibited admission.

Director of Vyansilati Enterprises, Harold Chibwe had stated that on May 29, Deka responded to a demand letter issued by the company advocates and admitted owing it K2,600,000 and also made an undertaking to settle the same.

“The company entered into a loan agreement with Deka on April 12, 2019 for a sum of K2,675,000.00 to be paid within two weeks and late payment attracted a penalty of 15 percent of the total payment amount. On May 23, 2019 the company advocates issued a demand letter for sum of K4,591,412.98 and was duly acknowledged by Deka on May 29,” read the affidavit.

“Deka did respond to plaintiffs advocates demand letter on May 29, admitting owing the plaintiff K2,600,000 and also made an undertaking to settle the same. In the circumstance, the plaintiff company have instructed their advocate to seek from this honourable court an order to enter judgement by way of admission for the sum so claimed and admitted by the defendant together with interest and costs from the date of the exhibited admission.”

But in an affidavit in opposition for summons for an order to enter judgement on admission, Deka stated that she did not admit owing K2,300,00 to the plaintiff, but K1, 000,000 with reasonable interest.

“In my letter dated May 29, 2019, I do not admit owing K2,300,00 to the plaintiff, at all material times I admit owing Marvin Chibwe the sum of K1, 000,000 with reasonable interest,” she stated.

Deka stated that Vyansilati was not a party to the agreement, therefore, it could not enforce any rights under the agreement, notwithstanding it’s relationship with the lender.

She further stated that section 15 of the money lender’s Act prohibited any lending with interest in excess of 48 percent, which was harsh and unconscionable.

“The loan agreement provides for a penalty of 15 percent of the outstanding balance per week. Penalty interest is expressly prohibited by regulation 10 of the banking and financial services (cost of borrowing) regulations Statutory Instrument No.179 of 1995,” stated Deka.