Investrust sues RB

itia on 6/18/13

By ETAMBUYU SANG’ANDU –
INVESTRUST Bank Plc has sued former President Rupiah Banda for alleged failure to settle an overdraft and interest on a mortgage of more than KR2 million.
The bank has also dragged to court Allen West Zambia Limited, Mr Banda’s fugitive son, Henry and Chiparamba Enterprises as respondents in the matter of enforcement on mortgages.
This relates to plot numbers 1397 and 2514 in Kitwe and plot number 2397 in Lusaka.
The respondents owe Investrust Bank more than KR2 million (about K2, 840, 912, 316.18) acquired by the first respondent, Allen West Zambia Limited, which the three other respondents provided as security.
According to the originating notice of motion filed in the Kitwe High Court, Investrust Bank said it was the mortgage and debenture holder for the determination of payment of all the money.
As at January 10 last year, the money stood at K2, 840,912,316.18, including contractual interest as per facility letters, costs and other charges under an overdraft facility availed to Allen West Zambia between 2005 and 2006.
Allen West Zambia Limited was the registered owner of mortgages of stands 2514 and 1397, while Chiparamba Enterprises pledged stand number 2397 in Lusaka as security for Allen West Zambia’s borrowing.
In the affidavit of summons, Mathew Mwalimu, an assistant manager credit, stated that between March 2005 and April 2006, Allen West Zambia, as a customer of the bank, sought an overdraft facility in the sum of KR700,000 (K700 million).
The facility was extended with the parties agreeing that the properties be secured as legal mortgage.
This is in respect of stand number 2514 in Kitwe and stand 2397 in Lusaka, belonging to Chiparamba Enterprises.
Furthermore, personal guarantees by the former President and his son Henry were made.
“The four respondents are the only ones in the possession of the mortgage property and in default of payment of the overdraft sums and interest plus other said facilities and security,” reads the affidavit in part.
The bank has further applied to the court to create and enforce a mortgage over stand 2397 in Lusaka and delivery by the respondents to the applicant’s bank of the charged properties.
Investrust also applied for any further or other relief the court may deem fit.
The matter, which was scheduled for hearing yesterday before Judge Isaac Kamwendo, however, failed to take off as the respondents were not in court.