Mwanawasa, bank ordered to seek mediation

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.