Gono to lose house over $1,3m debt

Chronicle (Zimbabwe) - - Front Page - Daniel Ne­mukuyu

FOR­MER Re­serve Bank of Zim­babwe Gover­nor Dr Gideon Gono’s Grey­stone Park prop­erty will next week be auc­tioned over non-pay­ment of a $1,3 mil­lion debt.

Dr Gono bought sev­eral ve­hi­cles on credit from a lo­cal car dealer Oa­sis Mo­tors six years ago for his staff and op­er­a­tions at Lu­nar Chick­ens and other com­pa­nies but failed to set­tle the debt.

Oa­sis Mo­tors suc­cess­fully sued him at the High Court and ob­tained an or­der for pay­ment of the debt.

Dr Gono did not pay the debt re­sult­ing in the at­tach­ment of the im­mov­able prop­erty in Grey­stone Park mea­sur­ing 4,654 square me­tres.

Yes­ter­day, Zim Auc­tions and Real Es­tate advertised the sale of Num­ber 8 Ed­stone Road, Grey­stone Park. The prop­erty will be auc­tioned on Au­gust 26 in Harare. Oa­sis Mo­tors filed sum­mons for pro­vi­sional sen­tence at the High Court on the strength of an ac­knowl­edge­ment of debt signed by Dr Gono on Jan­uary 31, 2009 when he bought the ve­hi­cles.

In the sum­mons filed by Oa­sis Mo­tors’ lawyers Chitewe Law Prac­tice on Jan­uary 27 last year, Oa­sis claimed $1, 319, 000 with interest.

Dr Gono re­ceived ve­hi­cles for his staff and op­er­a­tions at his com­pa­nies, in­clud­ing Lu­nar Chick­ens on credit.

The ve­hi­cles were val­ued at $1,749, 000, but Dr Gono partly paid the debt, leav­ing a bal­ance of $1, 319, 000.

Ac­cord­ing to the agree­ment, Dr Gono was sup­posed to pay the debt in full by Jan­uary 31, 2010, but failed.

De­spite de­mand, Dr Gono did not set­tle the debt, re­sult­ing in Oa­sis Mo­tors in­sti­tut­ing le­gal pro­ceed­ings at the High Court.

In his op­pos­ing af­fi­davit dated Fe­bru­ary 17, 2015, Dr Gono ar­gued that at the time when the agree­ment of sale was signed, charg­ing in for­eign cur­rency was il­le­gal hence the ac­knowl­edge­ment of debt re­lied upon by Oa­sis Mo­tors should be dis­missed as an il­le­gal­ity.

Dr Gono also ar­gued that the ac­knowl­edge­ment of debt re­lied upon is dated Jan­uary 31, 2009, hence the suit must fail be­cause it was filed out­side the three-year pe­riod per­mit­ted in terms of the Pre­scrip­tion Act.

Oa­sis, how­ever, won its case.

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