Former First Lady Maureen Mwanawasa On Verge Of Bankruptcy
Former first lady Maureen Mwanawasa is reportedly on the verge of being declared bankrupt after she reportedly failed to settle a loan she obtained from Finance Bank of Zambia.
FINANCE Bank Zambia Limited has requested the Lusaka High Court to issue a bankruptcy notice against Maureen Mwanawasa for fbeing unable to settle over K6 million debt which emanates from a loan facility she got back in 2013.
The former first lady has been given a seven-day ultimatum in which to clear her debt and pay the bank's lawyers Simeza Sangwa & Associates, upon receiving the insolvency notice.
Maureen defaulted to pay amounts due to the bank under a consent judgment dated June 11, 2019 in a matter where she was sued together with her farm for non-payment of a loan.
According to the consent judgment, it was agreed that Maureen would pay the bank K6,754,546. 76 in settlement of the bank's claim against Mipachima Farms Limited and the former first lady.
It was further agreed that the amount and accrued interest would be paid before June 30, 2019.
Mipachima Farms was supposed to pay the bank K892,831.99 before the agreed date.
The parties agreed that if Maureen and her farm defaulted on payment of the judgment sums, they would be liable to pay interest on the total sums due to the bank at contractual interest rates which would stand payable on the judgment sum.
It was further agreed that if the defendants failed to pay the judgment sums on the due date, the bank shall be at liberty to levy execution against Maureen and her farm at the date of such default without need for any further order of the court.
And in an order for payment of agreed costs in installments, High Court deputy registrar Lameck Ngambi ordered that agreed costs in the sum of US $25,000 would be paid by the defendants in equal monthly instalment payments of $3,200, beginning March 31, 2020 until the whole amount was liquidated in full.
It was further ordered that if the defendants defaulted on any installment, the Bank would be at liberty to levy exact on the outstanding balance without a court order.
However, according to a request for issue of bankruptcy notice, Finance Bank said the execution of the judgment had not been stayed.
"The said Maureen Mwanawasa has deliberately not settled the sums due under the said judgment to date," said Finance Bank.
Source: The Mast
Reporter: Mwaka Ndawa