business

June 21, 2019

SECHABA MATATIELE

2 min read

Bank claims debtor owes M5m

Bank claims debtor owes M5m

Finance

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Standard Lesotho Bank, formerly Lesotho Bank, has hauled to court its late customer and Maseru business magnate Pitso Makhoza who died over 30 years ago, claiming he owes the bank M5 million.  Makhoza’s son, Isanus Makhoza, is the heir to his father’s estate and now carries the burden of the case after his father’s death. The case started as far back as 2003.

The late Makhoza traded under the name Million Centre Transport. The court papers filed this week before the Commercial Court show that at all material time, Makhoza had been a client of the then Lesotho Bank. In May 1978, he entered into verbal agreements with the bank in terms of which the bank extended to him certain overdraft facilities. The terms of the agreement among others were that Makhoza would pay interest at the prevailing rate of interest from time to time. The prevailing rate interest on the bank overdraft is 18.25% per annum, calculated as in arrears.
In terms of a memorandum of agreement between the two parties signed on April 1992, the bank extended loan facilities of M1 million to Makhoza. The loan was to be repaid over a stipulated period of time. In the event the punctual payment of any instalment was not made, then the bank could among other things, cancel the agreement and accelerate the repayment of the loan and claim the full amount outstanding. To secure the loan, Makhoza mortgaged his properties by way of registration of a deed of hypothecation. The properties included his buildings in Lekhaloaneng, Maseru and a site at the Cathedral Area.

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After Makhoza defaulted in payment of the monthly instalments due and payable every month, the owing capital together with interest on his loan accounts to date are M1, 000, 000; M500, 000; M2, 000, 000 and M900, 000 – he is therefore indebted to the bank in the total sum of M5, 000, 000. The court this week heard that Lesotho Bank, after closing its operations to merge with Standard Bank, ceded its rights to the company known as Asset Recovery, which is now the one recovering the assets of the bank. The company claims from Makhoza’s son Isanus, the sum of M5 million, an order declaring the property specially mortgaged under the Deeds of Hypothecation, payment of interest at the rate of 18.25% and the costs of law suit.

Only King’s Counsel Sekake Malebanye who represents Standard Lesotho Bank appeared in court while Makhoza’s lawyer Attorney Khotso Nthontho did not turn up. KC Malebanye suggested to court that it was possible that Nthontho might be busy involved in the cases of All Basotho Convention (ABC) that are now before the courts of law. The matter, which continues before Justice Lebohang Molete was consequently postponed to Tuesday February 24-25, 2020.

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