Published: 07 February 2018

Stanbic Bank Zimbabwe has been awarded $6 million after successfully suing a construction company for failure to honour an overdraft facility arrangement.

The bank entered into a financial deal with CEEZED Construction (Private) Limited in which it lent $2 100 000 to the latter under a short-term overdraft facility agreement that was sealed in August 2012.

When the construction firm failed to service its debt the bank approached two companies — Costain Africa (Private) Limited and Southview Investments (Private) Limited that acted as sureties and co-principal debtors — to play their part in servicing the debt.

The two firms denied liability prompting the bank to approach the High Court to recover its dues which had increased to $3 070 207 plus interest at the rate of 20 percent annually for five years. After a fully contested civil trial, Justice Jester Charewa ruled in favour of the bank.
- zimapers

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