Mwanawasa, bank or­dered to seek me­di­a­tion

Daily Nation Newspaper - - HOME NEWS - By NA­TION RE­PORTER

THE Lusaka High Court has or­dered that the case in which for­mer first lady Mau­reen Mwanawasa has been sued by Fi­nance Bank Zam­bia Lim­ited (FBZ) de­mand­ing pay­ment of more than K6 mil­lion should be set­tled through me­di­a­tion. The par­ties were di­rected to go for me­di­a­tion but if they failed to re­solve the mat­ter, they could still go back to court. In this mat­ter, FBZ sued Dr Mwanawasa and Mi­pachima Farms Lim­ited where she is a di­rec­tor de­mand­ing K6.7 mil­lion and an­other K892, 831.99 which she ob­tained through a fa­cil­ity agree­ment. Ac­cord­ing to a state­ment of claim filed in court, FBZ stated that by a fa­cil­ity agree­ment dated March 14, 2013, Dr Mwanawasa was awarded a sea­sonal over­draft fa­cil­ity of K250, 000 and a loan of US$387, 000 for Mi­pachima Farms. The bank stated that it was an ex­press term of the agree­ment that the sum of K250, 000 was to be set­tled in full by Septem­ber 30, 2013 from the pro­ceeds of the sea­sonal farm­ing ac­count and the sum of US$387, 000 was re­payable in five equal in­stall­ments with in­ter­est re­payable monthly by debit to the sea­sonal over­draft ac­count. FBZ stated that the bank­ing fa­cil­i­ties were se­cured by a per­sonal guar­an­tee cre­ated by Dr. Mwanawasa un­der which she guar­an­teed pay­ment on de­mand of prin­ci­pal sums of in­ter­est thereon. It stated that by the said per­sonal guar­an­tee, Dr. Mwanawasa bound her­self jointly and sev­er­ally to pay within two days af­ter the de­mand of all funds due to FBZ from the farm ac­tiv­i­ties in­clu­sive of charges and costs. The bank stated that it had as a re­sult suf­fered loss and dam­ages and wanted Dr. Mwanawasa to pay back all the funds due to it.

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