Published: 07 March 2014

CBZ Bank has lost $600 000 after a tobacco auction floor it advanced the money as an overdraft facility went into liquidation before it settled the debt.

The overdraft facility extended to Millennium Tobacco Auction Floors (Private) Limited in June last year was meant to finance the company's cash flow mismatch.

MTAF failed to honour its obligations and the arrears have since risen to $801 128 because of interest.

CBZ has since instructed their lawyer Obert Gutu of Gutu and Chikowero Law Chambers to recover the debt.

This week, Gutu submitted his client's claim to MTAF's liquidator, Winsley Militala of Petwin Executor Services, to act on the matter.
- herald

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