FORMER first lady Maureen Mwanawasa has been given a seven-day ultimatum in which to settle over K6 million debt owed to Finance Bank Zambia from a loan obtained in 2013.
And the bank has asked the Lusaka High Court to issue a bankruptcy notice against her for failing to pay the said amount.
In October 2018, Finance Bank sued Maureen, demanding payment of more than K6.7 million under a facility agreement dated March 14, 2013.
The bank was further claiming for payment of K892,831.99 from Maureen and Mipachima Farms Limited, in which she is a director.
According to a statement of claim filed in the Lusaka High Court, October 12, 2018, the bank stated that Maureen was the holder of a joint current account maintained with Finance Bank and also a director in Mipachima Farms.
They stated that by a facility agreement dated March 14, 2013, made between them, the bank awarded a seasonal overdraft facility of K250,000 and a loan of US $387,000 to Mipachima at its request and instance.
The bank further stated that it was an express term of the agreement that the sum of K250,000 was to be settled in full by September 30, 2013, from the proceeds of the seasonal farming account.
They added that the sum of US $387,000 was repayable in five equal instalments, with interest repayable monthly by debit to the seasonal overdraft account.
The bank further stated that by the said personal guarantee, Maureen bound herself jointly and severally to pay within two days after, the demand of all funds due from the farm activities, inclusive charges and costs.
They had lamented that they had suffered loss and damages and wanted Maureen to pay back all the funds due to them.
And according to the consent judgment filed in court, the parties agreed that Maureen would pay the bank K6,754,546.76 in settlement of the bank’s claim against her and Mipachima Farms Limited.
It was further agreed that the amount and accrued interest would be paid before June 30, 2019 and Mipachima Farms was supposed to pay the bank K892,831.99 before the agreed date.
The parties agreed that if Maureen and her farm defaulted on payment of the judgment sums, they would be liable to pay interest on the total sums due to the bank at contractual interest rates which would stand payable on the judgment sum.
It was further agreed that if the defendants failed to pay the judgment sums on the due date, the bank shall be at liberty to levy execution against Maureen and her farm at the date of such default without need for any further order of the court.
And in an order for payment of agreed costs in installments, High Court deputy registrar Lameck Ngambi ordered that agreed costs in the sum of US$25,000 would be paid by the defendants in equal monthly instalment payments of $3,200, beginning March 31, 2020 until the whole amount was liquidated in full.
It was further ordered that if the defendants defaulted on any installment, the Bank would be at liberty to levy exact on the outstanding balance without a court order.
However, according to a request for issue of bankruptcy notice, Finance Bank stated that Maureen had deliberately not settled the sums due under the said judgement to date and noted that execution of the judgement had not been stayed.