26 March 2019

Zimbabwe: NMB Bank Founder to Pay Back $1.1m

Former NMB Bank founder Mr Julius Makoni started his banking business with the intention to harvest money from the financial institution for himself, the High Court ruled in a case in which the banker was refusing to settle more than $1.1 million advanced to one of his Trusts.

Justice Happias Zhou made the remarks in the judgment forcing the banker to settle his debt with his former bank to the tune of $1 105 748. 90.

NMB had sued Mr Makoni for a composite facility of call loans and overdraft of $760 000 extended to The Time Being of Cornerstone Trust, a vehicle he operated to access money from bank.

The banker and his other trust, The Time Being of Ryvonne Trust bound themselves as sureties and co-principal debtors.

After a fully contested civil trial, Justice Zhou ruled in favour of NMB, which was being represented by Advoacte Thabani Mpofu, and threw out Mr Makoni's defence to the claim as unconvincing.

The judge also allowed NMB Bank to sell the banker's mortgaged property to recover the debt.

"It is ordered that payment of US$1 105 748.90 plus interest thereon at the rate of 15 percent per annum from the 9th September 2015 such interests calculated monthly and in advance on the said sum and capitalised to the date of payment in full," said Justice Zhou.

The judge allowed the bank to attach Mr Makoni's piece of land known as Remainder of Lot 6 of Rienfontein measuring 1, 2129 hectares.

In his scathing judgment, Justice Zhou rapped Mr Makoni for attempting to hoodwink the court, in a case which was backed by documentary evidence, describing him as a dishonest person.

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