Woes continue mounting for former Local Government minister Saviour Kasukuwere’s brother Stanley, after he was dragged before the High Court for failing to pay back a $24 000 loan advanced to him in 2016 by Met Bank.
According to court papers, the two parties entered into a written loan agreement in January 2016, in terms of which the bank was to advance a $17 000 agro-input loan to Kasukuwere.
“The material terms…were inter alia: that the plaintiff (Met Bank) would grant the defendant an agro-input loan in the sum of $17 596, that the loan facility would be repayable in 12 months instalments of $1 588, 19 per month and would expire on the 30th of December 2016,” the court heard.
It was further agreed that upon the expiry of the loan facility, any outstanding amount would become due and payable.
It was also a term of the agreement: “that interest on the facility would be charged at the aggregate of the ruling bank’s base rate and a margin thereon of 15 percent per annum subject to change from time to time in line with the prevailing market conditions as advised by the bank”.
The sum that was not paid when due, was also to attract default interest at the rate of seven percent per annum and would be calculated from the date on which the sum fell due to the date on which it was actually paid, the court was told.
According to the agreement, Stanley was also supposed to pay “…an arrangement fee of 1, 5 percent, management fee of 1, 5 percent upon drawdown and administration fees of $100 charged once off upfront (and) would be debited to the defendant’s account”.
“The defendant has proceeded to draw down on the loan facility. Notwithstanding that the 30th of December 2016 has come and gone, the defendant has failed to fully and punctually pay the monthly instalments when they fell due and payable,” the court was told.
Stanley is yet to file a comprehensive response to the application, in a matter still pending before the High Court.