High Court orders FBZ’s K6m claim against Maureen Mwanawasa to mediation

The Lusaka High Court has ordered that the matter in which Finance Bank Zambia Limited has dragged former first lady, Maureen Mwanawasa to court, demanding payment of more than K6 million under a credit facility agreement, be settled through mediation.

The Court has ordered that the parties should go for mediation but if they fail to reconcile, they can still return to court.

In October this year, 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, to 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.

And the bank stated that it was further agreed that the US $387,000 would be paid at 3.5 per cent below Bank of Zambia’s US dollars base rate, effective rate 9.5 per cent annum compounded monthly by debit to the seasonal overdraft account.

They stated that the banking facilities were secured by a personal guarantee created by Maureen under which she guaranteed payment on demand of principal sums of interest thereon.

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.

         

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