Investrust Bank Plc has sued Lawrence Sikutwa and Associates Limited and another company in the Lusaka High Court, demanding payment of over K11 million, which was allegedly secured by way of a third-party mortgage.

The bank has cited Lawrence Sikutwa and Associates Limited as a first respondent, Amalgamated Tourism Investment Limited as second respondent and Sikutwa as third respondent, respectively.

In an affidavit in support of originating summons, Investrust Bank credit manager Chisanga Ireen Komeki stated that Lawrence Sikutwa and Associates was a customer of the bank with an account, but disclosed that the company had defaulted in servicing four loans.

She explained that in March, 2013, Lawrence Sikutwa and Associates applied and was availed a refinance and restructured loan facility of K10 million, plus compound interest accrued by way of a third-party mortgage.

“In March, 2013, Lawrence Sikutwa and Associates in its own volition and request, applied for and was availed by the bank, a refinance and restructured loan facility for K10 million, plus compound interest accrued by way of a third-party mortgage dated May 17, 2013, over the remaining extent of S/D of Stand No. 1942, Livingstone, by Amalgamated and a third-party mortgage dated May 17, 2013, over Stand no. 3938, Lusaka by Sikutwa and personal guarantee by the third-respondent,” read the affidavit.

Komeki stated that as further security, Sikutwa executed a director’s personal guarantee as continuing security for the whole K10 million interest, costs and expenses and guarantying the repayment of the said sum to the bank.

She further disclosed that in October, 2013, Lawrence Sikutwa and Associates of its volition and request, also applied for and was availed a short-term loan facility of K2,910,267.53 plus compound interest, secured by further charge dated December 31, 2013, over the Lusaka Stand by Sikutwa.

Komeki stated that in February, 2016, Sikutwa applied and was availed restricted and enhanced loan facility by the bank in the sum of K7,407,497.00 plus compound interest to be secured by, among others, continuing security of the third-party mortgage.

She stated that in February, 2015, Lawrence Sikutwa and Associates procured a finance lease facility in the sum of US $38,277.60 for the purchase of a motor vehicle namely, Ford Ranger 3.2 diesel D/Cab LTD 4×4.

Komeki disclosed that the company had defaulted in servicing the four said loans and had failed or neglected to adhere to the repayment terms despite numerous reminders from the bank, thereby, resulting in the loss and damage to the bank.

She added that it was an express term of the various loan agreements that in the event that Lawrence Sikutwa and Associates failed to repay the monies within the stipulated period, the bank would be at liberty to enforce the securities alluded to.

Komeki explained that Lawrence Sikutwa and Associates was at of May 15, this year, indebted to the bank in the sum of K11,652,847.80.
Investrust Bank is now seeking payment of charge created by Sikutwa in favour of his firm in respect of Stand No.3938, Lusaka and the third-party mortgage over REM/Stand1942/A, Livingstone created by Amalgamated in favour of Lawrence Sikutwa and Associates.

Its also seeking an order that, should Lawrence Sikutwa and Associates neglect or refuse to pay the aforementioned monies, the third-party mortgage and favour charge created by Sikutwa in favour of his firm in respect of the stands in Lusaka and third-party mortgage over the stand in Livingstone created by Amalgamated, be enforced by the order of foreclosure, vacant possession and sale thereof.

Investrust is further seeking an order for the payment of the sum of K11,652,847.80 as of May 15, 2019, plus interest by Sikutwa arising out of personal guarantee dated April 12, 2013, which Sikutwa personally guaranteed to pay.

The matter will be heard on August 27.