VICE-PRESIDENT Constantino Chiwenga’s ex-wife, Jocelyn and her company Rugnet Ventures, has fallen on hard times and risks losing her residential property in Harare’s leafy Glen Lorne suburb after she failed to repay her $2,6 million CBZ Bank loan.
The latest development came nearly six years after Jocelyn concluded her messy divorce with the former military commander and shared their vast wealth equally.
In summons filed at the High Court on March 9 this year, CBZ Bank cited Jocelyn, her companies Rugnet Ventures (Private) Ltd and Licybuster Investments (Private) Ltd, as co-respondents.
The bank is represented by Musendekwa-Mtisi Legal Practitioners, while Jocelyn is self-acting.
According to the court papers under case number HC2248/18, sometime in May 2014, the bank entered into a structured loan facility agreement with Rugnet Ventures for $1,3 million at the firm’s special instance and request.
“It was agreed that interest would accrue at the bank’s minimum lending rate (3% per annum) plus 13% all-inclusive on the restructured loan facility during the restructured loan facility period, but subject to change thereafter in line with prevailing money markets rates,” the bank said in its declaration.
“It was a term of the said agreement that the first defendant (Rugnet Ventures) would pay collection costs, bank charges and legal costs on an attorney-client scale in the event of plaintiff (CBZ) resorting to legal action to recover its monies.”
The parties allegedly agreed that Rugnet Ventures would repay the loan facility at a rate of $260 000 per year until expiry of the loan term on May 31, 2019.
“The second and third defendants (Jocelyn and Licybuster Investments) signed unlimited guarantees, wherein they bound themselves as sureties and co-principal debtors with the first defendant, hence liability has become jointly and several, the one paying the other to be absolved,” the bank said.
“The first, second and third defendants breached the terms of the restructured loan facility agreement by failing to repay the principal amount and interest fully and punctually in annual instalments of $260 000.”
Consequently, as a result of her failure to service the debt, Jocelyn is likely to lose her upmarket stand, which had been surrendered to the bank as surety.
“The third defendant registered a first mortgage bond for $607 500 stand number 2161 Glen Lorne Township stand number 812 Glen Lorne Township 15 registered in the name of the third defendant and held under deed of transfer number 3787/08 dated June 3, 2008 as security for the debt, hence the property becomes executable,” CBZ argued.
“In terms of the banking practice, plaintiff included, the defendants are liable to pay interest at plaintiff’s minimum lending rate applicable from time to time currently at 16% per annum and compounded monthly effective from date of summons to date of full payment. As at the date of summons, the defendant’s total indebtedness to plaintiff was in the sum of $2 594 249,97.”
The former army chief’s ex-wife is yet to respond to the summons.