Cavmont Bank Limited has dragged Muvi Television Limited and 34 of its employees to Court, demanding immediate payment of over K500,000 in outstanding personal loans.

The bank which is further seeking for damages and interest, has sued Paul Sinyangwe and Gershom Mwale on behalf of the other 32 Muvi TV employees.

In a statement of claim filed in the Lusaka High Court, Thursday, the bank stated that it entered into a Corporate Loan Scheme Agreement with Muvi TV in May 2015, where it was agreed that it would provide personal loans to Muvi TV employees.

The statement of claim indicated that Muvi TV would on a monthly basis deduct from its employees salaries in order to repay the personal loans to the bank.

“It was agreed that Muvi TV would use its best endeavour to deduct the monthly amounts payable by each employee in order to redeem the personal loan and pay the same directly to the bank for the duration of the loan agreement on such date as shall be agreed by the parties,” read the statement of claim.

The bank stated that it was further agreed that Muvi TV would remit such monies as each employee was entitled to including; net salaries, notice pay, leave benefits or separation benefits and that any surplus after the loan had been redeemed would be remitted to the employee.

It observed that it was Muvi TV’s responsibility to make deductions from its employees’ salaries in order to settle the loans.

“For each of the 34 employees, Muvi TV issued irrevocable undertakings to send each employees net salary/ loan repayment instalment /separation and accrued benefits to the bank at its Kalingalinga Branch in Lusaka. It was therefore Muvi TV’s responsibility to ensure and make the deductions from the employees’ salaries, notice pay, leave benefit and accrued benefits in order to settle the employees’ obligation with the bank,” read the statement of claim further.

The bank however stated that Muvi TV had defaulted to make certain payments to redeem its employees personal loans, adding that the same had accrued up to K554,628.41 as at November 29, 2018.

Cavmont Bank stated that it had made its best endeavours in contacting the employees concerned, to demand for payment of their outstanding debts but they had responded that Muvi TV had been deducting their salaries from their pay slips to pay their loans directly to the bank.

The bank however alleged that the said deduction were never received.

Cavmont further stated that a number of the defaulting employees confirmed upon further inquiry that they had in fact not received their separation dues and accrued benefits from Muvi TV, making it difficult for them to make good on their person loan repayments.

The bank stated that despite several reminders, Muvi TV had failed or neglected to remit the outstanding monies to the bank.

It is now claiming for immediate payment of K554,628.41 from Muvi TV, interest, damages, costs and any other reliefs.