The Sunday News
Business Writers
Chegutu West Member of Parliament Dexter Nduna and his wife Schalastica have been declared bankrupt after failing to repay a $231 000 debt owed to Standard Chartered Bank.
In his ruling, High Court judge Justice David Mangota said the two failed to satisfy the judgment debt —provisionally granted in 2011 while the final order was issued in September 2015.
The High Court decision also has repercussions on his status in parliament as the law states that a parliamentary seat becomes vacant upon the incumbent being declared insolvent unless the judgment is rescinded.
The court papers show that after Nduna and his wife failed to comply with the court’s settlement, a provisional sentence was issued in which, the couple was found to be technically insolvent, meaning no property could be used to service the debt.
Following the final order, Stanchart levied execution of the judgment through the Deputy Sheriff who failed to find assets belonging to the two. Stanchart filed an application seeking Nduna to be declared insolvent.
It moved the court to provisionally sequestrate the couple’s estate, however, the duo opposed the application, arguing they were not devoid of means to satisfy the judgment of debt. They averred that they were into commercial cattle ranching and therefore could dispose of some of their animals to partly repay the debt.
MP Nduna insisted he was not insolvent, claiming he had a vehicle, valued at $40 000. He further claimed he enjoyed a monthly salary, which he requested Stanchart to garnish.
He also stated that he earned allowances from a parliamentary portfolio committee, which he chairs and averred the house he used for security was valued of $120 000.
From their farming business, Nduna claimed he realised between $50 000 and $70 000 per month.
“Their assets remained unsubstantiated allegations apart from the sum of $3 393,78 which was (in Nduna’s) bank account as at 13 September 2016,” said Justice Mangota.
On the day of hearing the application on July 5 this year, the court postponed the matter to allow the parties to negotiate with a view of reaching a settlement at the request of the Ndunas.
The matter was postponed to August 2, 2017 and on the date of the court the parties advised the court that no settlement had been reached. The couple failed to unsuccessfully apply for a leave to file supplementary affidavit to prove they were not insolvent.
Stanchart opposed the application, arguing the Nduna’s were simply employing “a delaying tactic.”
“The court ruled against the respondents. It remained alive to the fact that the respondents gave no reasons at all for not having included the contents of the intended supplementary affidavit in their opposing affidavit. It also was aware that the respondents appeared before it on 5 July, 2017 and instead of talking about having a supplementary affidavit filed, they talked about possible settlement of the matter.”
While the couple made an effort to prove their capacity to repay, the bottom line was they paid nothing from the date the payment became due noted Justice Mangota.
“It is displeasing to learn that they did not meet their obligation to the applicant even when court ordered them to do so. The applicant made every effort to recover what was due to it from the respondents without success. The writ of execution which it issued on 30 October 2013 had a nulla bona return. It issued further writs on 12 November 2013, 22 March 2014 and 8 May 2015. None of those writs brought any good news. That was much as it could go. It is trite that who alleges must prove.
“The court has considered all the circumstances of this case. It is satisfied respondents do not have the means to satisfy the judgment debt. It will be to the advantage of the applicant and other creditors of the respondents to grant the application.”-BusinessWeekly.
