HARARE – Tycoon preacher and businessman, Walter Magaya is set to lose a 3,2-hectare stand located next to his upmarket hotel in Waterfalls, Harare after failing to pay a US$420,410 debt owed to Getbucks Microfinance Bank Limited.

Magaya and his wife, Tendai borrowed the money in March this year promising to pay back the total amount by September 7 this year.

They went on to give as surety, a piece of land next to Yadah Hotel measuring 3,2323 hectares.

After failing to pay, High Court judge Justice Jacob Mafusire on Wednesday granted an order against the couple and their company, Planet Africa, ruling that the property held as surety was now executable.

“Whereupon after reading documents filed of record and hearing counsel, it is ordered that judgment for provisional sentence in the sum of US$420,140,72 is hereby granted in favour of the plaintiff against the defendants jointly and severally, the one paying the others to be absolved, together with interest thereon at the rate of 10% per month from 11 September 2024 to the date of payment in full.

“The first defendant’s (Planet Africa) immovable property known as certain piece of land situated in the district of Salisbury called the Remainder of Stand 166 of Prospect measuring 3, 2323 hectares held under deed of transfer No 4076/2018 and dated 27 July 2018 is hereby declared specially executable,” ruled the judge.

Mafusire also said the irrevocable special power of attorney issued by Planet Africa to Getbucks on 8 March 2024 authorizing Atherstone & Cook legal practitioners “and any of their partners to sell and transfer the property above is hereby confirmed and declared specially executable.”

The judge said the defendants shall “pay, jointly and severally, the one paying the others to be absolved, the plaintiff’s costs of suit on a legal practitioner and client scale, and collection commission in accordance with the Law Society of Zimbabwe by-laws”.

The Plaintiff’s claim against you jointly and severally the one paying the others to be absolved is for a provisional sentence in the amount of US$420,410,72 together with interest thereon at the rate of 10% per month from the 11th of September 2024, being the date of the certificate of indebtedness to date of full payment.

Getbucks filed summons against Magaya and his company based on an acknowledgment of debt executed by the 1st Defendant on the 8th of March 2024.

In terms of the acknowledgment of debt, Planet Africa was required to pay US$30,000 before 7 April, US$40,000 before 7 May, US$50,000 before 7 June, US$60,000 before 7 July, US$70,000 before 7 August and the balance of US$166,718 on or before 7 September this year, but failed to do so.

As such, the company was now in default.

As security for the due debt repayment, Magaya and his wife executed Unlimited Personal Guarantees in favour of Getbucks dated 29 February 2024, standing as surety and co-principal debtors.

“In terms of the repayment conditions of the acknowledgment of debt, the debt ought to have been fully settled by the 7th of September 2024 and therefore overdue.

“Defendants having acknowledged indebtedness and defaulted payment, Plaintiff is left with no option but to institute the present proceedings for the recovery of the current outstanding amount together with interest, collection commission, and costs as aforesaid,” read the summons.

Getbucks went on to attach supporting documents including the certificate of indebtedness dated 11 September 2024.

The firm also submitted that Magaya and his company were liable to pay US$42,041.07 being collection commission.