PROPHETIC Healing and Deliverance (PHD) Ministries founder and entrepreneur, Walter Magaya is set to lose 3,2323 hectares of land after failing to settle a US$420 140 debt, which he owes Getbucks Microfinance Bank Limited.
High Court judge, Justice Jacob Mafusire, sitting at the Harare High Court last week, directed that the land be executed after the cleric failed to pay back the money that he borrowed earlier this year through his company Planet Africa.
Magaya had pledged as surety the land located next to his famous hotel.
Planet Africa is cited as the first respondent in court papers while Magaya and his wife Tendai are second and third respondents, respectively.
"Whereupon after reading documents filed of record and hearing counsel, it is ordered that judgment for provisional sentence in the sum of US$420 140.72 is hereby granted in favour of the plaintiff against the defendants jointly and severally, the one paying the others to be absolved, together with interest thereon at the rate of 10% per month from 11 September 2024 to the date of payment in full.
"The first defendant's immovable property known as certain piece of land situate in the district of Salisbury called the Remainder of of Stand 166 of Prospect measuring 3, 2323 hectares held under deed of transfer No. 4076/2018 and dated 27 July 2018 is hereby declared specially executable.
"The irrevocable special power of attorney issued by the first defendant to the plaintiff on 8 March 2024 authorising Atherstone & Cook legal practitioners and any of their partners to sell and transfer the property above is hereby confirmed and declared specially executable.
"The defendants shall pay, jointly and severally, the one paying the others to be absolved, the plaintiff's costs of suit on a legal practitioner and client scale, and collection commission in accordance with the Law Society of Zimbabwe by-laws," Mafusire ruled.
Getbucks filed summons against Magaya and his company based on an acknowledgment of debt executed by Planet Africa March 8, 2024.
In terms of the acknowledgment of debt, Planet Africa was required to pay US$30 000 before April 7, 2024, US$40 000 before May 7, 2024, US$50 000 before June 7, 2024, US$60 000 before July 7, 2024, US$70 000 before August 7, 2024 and the balance of US$166 718.33 on or before September 7, 2024, but failed to do so.
As security for the due debt repayment, Magaya and his wife executed Unlimited Personal Guarantees in favour of Getbucks dated February 29, 2024, standing as surety and co-principal debtors.
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"In terms of the repayment conditions of the acknowledgment of debt, the debt ought to have been fully settled by the 7th of September 2024 and therefore overdue.
"Defendants having acknowledged indebtedness and defaulted payment, Plaintiff is left with no option but to institute the present proceedings for the recovery of the current outstanding amount together with interest, collection commission, and costs as aforesaid," read the summons.
Getbucks also submitted that Magaya and his company were liable to pay US$42, 041 being collection commission.
