Deputy Minister loses property over $1,5m debt

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THE High Court sheriff on Friday stormed the Borrowdale home of Mines and Mining Development Deputy Minister Fred Moyo to attach property worth thousands of dollars after he and fellow directors of a mining firm failed to settle a $1.5 million debt. freddy-moyo

Moyo and fellow directors stood surety to Stanbic Bank Zimbabwe Limited for a $765,000 loan, now repayable with interest and other charges almost matching the original loan. The money was advanced as a loan to Ox Mining Private Limited, a company in which Deputy Minister Moyo was a director.

Our Harare Bureau understands Deputy Minister Moyo bound himself as surety together with three other top ranking OX Mining officials. When Ox Mining failed to pay the debt, Stanbic sued the company and its directors.

Deputy Minister Moyo, together with Paul Diamond, Dirk Renier Bewade and Sydney Steyn, were ordered to pay $765,000 plus interest calculated at a rate of 31,85% per annum from July 1, 2013 to the date of payment in full. On Friday last week, the Office of the Sheriff of the High Court indicated interest stood at $691,239 while the commission was $72,861.30.Other smaller charges were also factored in, giving a total debt of $1,457,225, 30. On Friday, the Sheriff of the High Court went to the deputy minister’s house on Quinnington Road, and attached almost all movable property in sight including a Ford Ranger T6 and a Nissan Hardbody vehicle.

All household property including six fridges, two sets of sofas, stoves, kitchen unit, computers, tables, microwaves, dressing tables, were attached. The Sheriff also attached 15 school desks at the house, window and door frames, a Kipor electric generator, two water tanks, among other items.

The property was attached in the presence of the deputy minister’s wife Mrs Moyo, who watched helplessly as the Sheriff executed his work. The property attached was valued at less than a quarter of the debt and the Sheriff is expected to attach more property belonging to the deputy minister to satisfy the court judgment.

Ox Mining and Stanbic Bank entered an agreement on August 30, 2012 in which the bank released a loan. The parties agreed that Ox Mining would repay the loan with interest. In breach of the loan agreement, Ox Mining failed to pay the amount due within the agreed timeframes.

By June 30, 2013, Ox Mining owed Stanbic Bank $765,986. The High Court ordered Ox Mining and its directors to repay the $765,986 plus interest.