Source: Ex-minister Mangwana sued over $154k debt – DailyNews Live
Tendai Kamhungira 21 February 2017
HARARE – Former Indigenisation minister Paul Mangwana has been dragged to
the High Court for allegedly failing to pay $154 000 for a truck he bought
from the Zimbabwe Farmers Development Company (ZFDC).
According to court papers, the two parties entered into an agreement of
sale nearly a decade ago, under which ZFDC – represented by its
chairperson – sold a one-tonne dumper truck to the Zanu PF politician for
$81 000, on credit.
“Defendant (Mangwana) took possession and delivery of the truck before
signing the agreement of sale. The terms of the agreement brought to the
attention of the defendant, that defendant was to pay the purchase price
by way of annual instalments over a period of five years or until the
purchase price was fully paid,” the February 8, 2017 summons read.
The purchase price attracted compound interest at the prevailing rate,
according to the terms of the agreement.
It further stipulated that “ownership of the truck (was) to remain vested
with the plaintiff (ZFDC) until the purchase price was fully paid” while
“a penalty fee equivalent to five percent of arrear instalments would be
charged on instalments in arrears”.
The agro-company is now demanding the full amount with interest prescribed
from the date of issue of summons to the date of full and final payment,
as well as costs of the suit.
It is, however, not clear from the court summons how it reached to the
amount of $154 000.
“Defendant breached the terms of the agreement in that he omitted to pay
annual instalments. Despite demand on several occasions, defendant has
refused or neglected or omitted to pay $154 602, 09,” the court heard.
Mangwana – a lawyer by profession – has not yet responded to the court
summons.
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