The Lusaka high court has ordered that the case in which Former first Lady Maureen Mwanawasa has been sued by Finance Bank Zambia Limited be settled through mediation.
In this case, the former first lady had been sued by the Bank demanding payment of over K6.7 million which she obtained under a facility agreement dated March 14,2013.
The Bank is also demanding payment of over K 892,000 kwacha from Dr. mwanawasa and Mipachima Farms Limited, to which she is a director.
According to statement of claim that was filled in the Lusaka high court last month, the former first Lady is the holder of a joint bank account maintained with finance Bank.
According to the statement of claim filed in the Lusaka High Court principal registry by FBZL on October 12, 2018, Dr. Mwanawasa is the holder of a joint current account maintained with FBZL and a director in Mipachima farm.
FBZL stated that by a facility agreement dated March 14, 2013, made between the bank awarded a seasonal overdraft facility of K250, 000 and a loan of US$387,000 to Mipachima at its request and instance.
It 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$387, 000 was repayable in five equal installments with interest repayable monthly by debit to the seasonal overdraft account.
The parties agreed that the interest of each facility was to be calculated from the K250, 000 at five percent above Bank of Zambia (BOZ) policy rate currently 9.25 per cent hence effective rate 14.25 per cent annum compounded monthly by debit to the seasonal overdraft account.
It also stated that it was further agreed that the US$ 387, 000 would be paid at 3.5 per cent below BOZ’s US dollars base rate effective rate 9.5 per cent annum compounded 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 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.