Mwaka Ndawa, News Reporter
LUSAKA – Finance Bank Zambia Limited has petitioned the Lusaka High Court to file for bankruptcy against Maureen Mwanawasa for defaulting on over K6 million in debt arising from a credit facility secured in 2013.
The former first lady was given a seven-day ultimatum to repay her debts and pay the bank’s lawyers, Simeza Sangwa & Associates, once she receives the bankruptcy notice.
Maureen defaulted on payment to the bank pursuant to an approval decision dated June 11, 2019 in a case in which she and her farm were sued for non-payment of a loan.
According to the decree of consent, it was agreed that Maureen would pay the bank K6,754,546. 76 to settle the bank’s claim against Mipachima Farms Limited and the former First Lady.
It was further agreed that the amount and accrued interest would be paid no later than June 30, 2019.
Mipacima Farms had to pay 892,831.99K to the bank before the agreed date.
The parties have agreed that if Maureen and her farm default on the judgment amounts, they will be liable to pay interest on the total amounts owed to the Bank at the contractual interest rates payable on the judgment amounts.
It was also agreed that if the defendants do not pay the judgment amounts by the due date, the bank will be free to execute Maureen and her farm on the day of default without further warrant from the court.
And in an order to pay the agreed costs in installments, Deputy High Court Registrar Lameck Ngambi ordered that the agreed costs of $25,000 be paid by the defendants in equal monthly installments of $3,200 from March 31, 2020 until the total amount has been fully liquidated.
It was further ordered that if the defendants default on any installment, the bank is free to collect the unpaid amount without a court order.
But Finance Bank said enforcement of the judgment had not been stayed, according to a filing for bankruptcy notice.
“Said Maureen Mwanawasa has intentionally failed to pay the sums due under said judgment to date,” the Finance Bank said.
