Bank Sues Zim’s New Farmers Over Loans

via RadioVop Zimbabwe – Bank Sues Zim’s New Farmers Over Loans  By Criswell Chisango

Several new farmers who confiscated farms under the government backed and often violent land reform programme are seeing red after one of the country’s leading commercial banks filed lawsuits against them for allegedly defaulting in repaying loans advanced during the 2009-10 farming season.

Samuel Muyemeki of Mapira and Associates Legal Practitioners, who is representing six farmers facing litigation recently applied for a postponement of the matter in which CBZ Bank is suing the new farmers for defaulting on paying back loans on the basis that there had been some developments after the summons were issued.

‘’There were some developments between the days that summons were issued as there were deductions and adjustments made by the government. The plaintiff (CBZ Bank) was reluctant to give statements and it is defective as the bank is claiming high figures when government paid at least 75 percent of loans advanced’’ Muyemeki told the court.

However, Bruce Tokwe of Titan Law Chambers representing CBZ Bank insisted that the matter be heard urgently.

‘’The law of contract is based on repayment of loans advanced and these contracts were simple as the defendants (new farmers) flouted in repaying loans advanced by my client. To make such an application is embarrassing and flouting the rule of the honorable court. The defendants failed to repay loans advanced to them and you can read outside the contract’’ said Tokwe.

Magistrate Robson Finsin will on August 27, 2013 deliver a ruling on the matter in which CBZ is seeking an order compelling the new farmers to repay the loans in full.

Farmers, who grabbed farms under the Zanu PF -led land grab exercise are battling to restrain local banks from attaching their farming equipment after they failed to repay loans advanced in 2009-10 season.

CBZ’s Karoi branch has taken nearly 50 farmers to court over unpaid loans advanced to them to fund working capital and purchase farm inputs three years ago.

However, the farmers most of whom were ‘’self-actors’’ are protesting the bank’s demands as unwarranted as they got the inputs late while some of the inputs were never delivered to them by the bank.

One of the farmers said CBZ turned the loans into overdrafts which became costly to them.

‘’CBZ was quick to sue farmers when they had breached the contract by not providing farmers with fertilizers especially Ammonium Nitrate that has been promised. CBZ issued us with vouchers when they knew they had not procured fertilizer’’ said James Mandeya, a farmer in Tengwe about 50 kilometers west of Karoi town.

According to some farmers, the CBZ vouchers were not redeemable anywhere except at the Grain Marketing Board that had no fertilizer for them but was selling only for cash at the time.

‘’I am surprised why CBZ is taking such drastic measures against us as we never got all inputs on time. I got part of the inputs in November after the rainy season and that was a loss for the majority of us’’ said Mhoidian Nyakambangwe, who is being sued for over $22 000.

‘’My vouchers specify that I got half of the amount of inputs charged here. My appeal is for the Government to intervene and save us. If they can write off rates in all councils why not assist us by offsetting the mounting debts’’ pleaded Nyakambangwe in an interview with Radio VOP held in Karoi.

Economist, Godfrey Kanyenze, founding Director of Labour and Economic Development Institute of Zimbabwe attributed the failure by farmers to repay loans as uncertainty in the farming sector.

“It is unfortunate that producer prices were determined during selling seasons but farmers could not plan to see if the crop they want is viable. The uncertainty within farming sector affects cash crop production. It is a challenge faced by those who want to sponsor farming ventures and it is risky” said Kanyenze.

 

COMMENTS

WORDPRESS: 18
  • comment-avatar
    Munyaradzi 7 years ago

    I am such farmer affected by same bank same period. Was a full time farmer being financed by CBZ. Never defaulted in repaying the bank since 2001: that one season 2009/10 inputs came late well after growing season. The weather conditions bad. Tobacco prices fell. Dollarisation came on the scene. New bank officers were decentralised to Chinhoyi. They never knew us. Gave us no assistance following season. GNU CAME. NO HEART FOR A2 FARMERS. We fell and sank. No more support from bank. Sold over 100 cattle to get working capital. Tractors all down. Came back to Harare to seek employment 2010: poorer than before. Was given expensive inputs $40 000 working capital $30 0000 total 70 000: converted to overdraft. Interest rate 38%: have sold my other house paid 40 000: THE BANK HAS TITLE DEEDS FOR MY OTHER HOUSE WHERE I RESIDE. NO FURTHER ASSISTANCE. I AM DESPERATE FOR HELP. IAM POORER THAN I WAS BEFORE. BANK NEVER GAVE ME ANOTHER CHANCE. PLSE HELP. MUNYARADZI

    • comment-avatar
      Chitova weGona 7 years ago

      Keep farming,thats all i can Munya!

    • comment-avatar
      maita 7 years ago

      Inputs came late from where? Isn’t you are supposed to buy inputs with what you reaped the previous season. New farmer forever muchida free inputs yet kana makutengesa hamubhdhare kana tax futi. pay up your loans.Hanzi gvt paid 75% of the loans from where our tax. Isu tobhadhara tax kuma farmers totenga futi upfu hunodhura from the same farmers.

    • comment-avatar
      DubboZimbo 6 years ago

      Imagine the loan repayment if you had legally bought your land, like the last owner, instead of stealing it. Commercial farming is hard work, you can not blame anyone but yourself when you come up short.

  • comment-avatar
    Doris 7 years ago

    Now listen carefully – this is how it works – you go to a bank to ask for a loan – you then sign a loan agreement with the bank arranging for the repayment of that loan. You fail to pay back the money on time as agreed upon. The bank sues. Easy.

  • comment-avatar
    Simon 7 years ago

    Welcome to the real world!!!! And we hvnt even had a drought like 1992 and 1994 yet….reap what you sow.

  • comment-avatar
    Chitova weGona 7 years ago

    They stampeded to grab farms thinking it was a stroll in the park. Where is Hunzvi and co to pay back the loans for them?Mazvokuda ayo vanhuwe! Keep farming kunyanya Munyaradzi,zvichaita kana matora mabank.

  • comment-avatar

    The solution is obvious.
    Knock 3 zeros off the loan amount, indiginse the CBZ and you will owe yourself $70.
    This ecomony stuff is so easy.

    • comment-avatar
      mike hondo 7 years ago

      Mike are you Gono in disguise ? If not you could join a party of your own choice and put yourself forward to be the next reserve bank Chief as you definentely understand African banking

  • comment-avatar

    God is punishing all you farmers who took land from a thif.

  • comment-avatar
    Cde Tichashaina chete 7 years ago

    This is a simple business issue. You borrow , you dont pay , you are sued!! full stop.

    THIS DOES NOT MEAN LAND WAS NOT SUPPOSSED TO BE TAKEN BY BLACK ZIMBABWEANS. WE STILL NEED MORE. WHO HAVE DOCUMENTED THE FEW FARMERS WHO FAILED TO PAY BACK THE LOANS? NOW BECOZ ITS NEW FARMERS YOU ARE SAYING WHY THEY TOOK THE LAND.

    EVEN BIG CORPORATES FELL IN US, UK WANI NECREDIT CRUNCH!!! THEY (WHITES) FAIL, YOU SAY ITS OK, BLACK MAN FAILS YOU SAY “ZVINODA MURUNGU”

    PLEASE THE REMOVE THE REPROACH OF BEING A BLACK SLAVE WORKING FOR A WHITE MAN FOR “MATEMBA, NEUPFU, AND LITTLE MONEY TO BUY CHIBUKU NEFODYA YENEWSPAPER””

    • comment-avatar
      mike hondo 7 years ago

      CDe Tich you are right of course as as a white person i know lots of people of all races that have failed in farming and it is racist to say the things you talk of but there is a lot of sentiment about the land issue because when the whites were thrown off the land it was to hasty and rushed that you threw away 100 years experience and expertise when i feel we could have worked together to resolve the historic land issue,

  • comment-avatar
    grace 7 years ago

    i am not saying coloure has anything to do with it.honesty can god really prosper our new famers.look at it from a christain point of view.land is land its for everyone regardless of sink colour we are one people one nation.

  • comment-avatar

    when whites settled in Zimbabwe back in the 1800 there were a mere 500 000 indiginious people living there, now after 100 years with the help of reduces child mortality etc. there are 14million people, you do not have to be a genious to realise that there is not enough land, particularly if it is not utilised properly, it is only a matter of time before more land will be needed, at what point will it no longer be the fault of the white man?? another 30 or maybe 100 years, African needs to start taking responsibility for its own affairs, it is about to run out of excuses, Mugabe is right, the west should butt out of Africa and take their technology, drugs and aid with them.
    Will the next land take over be of the Ndebele’s land, then what? maybe look to your new best friend Zuma, you can go and take the SA farms away from the whites there, then what.
    Simple solution get the birth rate under control.

    Remember there will soon be thousands of chinese to deal will.

    33 years after independence, move on!!

    • comment-avatar
      Bruce 7 years ago

      I hate reporters who don’t verify their information and sources. They end up feeding the public with wrong information by misquoting the sayers and citing wrong names. At the end, instead of enlightening and informing the public, they mislead. Such reporters must not be given the platform to reach the public as they are a catastrophe to information dissemination. The reporter who reported this issue is one such reporter.

  • comment-avatar
    concerned 7 years ago

    @mike

    That is the most racist&ridiculous thing I have ever heard. Most of the technology you whites show off about is stolen from people of color, the drugs you claim are taken from indigenous knowledge. It is so backwards to think that everything backwards is black&everything progressive is white.

    africa is not in trouble because of africans but is on trouble because the world system that even you are unwittingly promoting is designed by a few mega rich elitists who want things to carry on exactly like it is.

    Where they plunder africa&other continents to make themselves rich&for uninformed people like you to perpetuate on their behalf a false reality.

    Since the beginning of time white people have been working to control of the world working against all that is natural because that is their general propensity

    Whilst people of color try to work with nature naturally. That is why white people try to manipulate&dominate.

    Now you expect africa to just ‘decide’ to reform within the current framework that was designed to make africa exactly what it is today.
    White people are naturally racist a study showed they have very little empathy for people of color this was proved using advanced brain scan technology (the kind you idolize)

    Read a little before you speak mike.

    • comment-avatar
      DubboZimbo 6 years ago

      Where you dropped on your head as a baby? Your argument is ridiculous.