LUBOMBO PROPERTY SUED FOR E53.2M

MBABANE – Eswatini Development Bank is demanding over E53 million from Lubombo Property Group Limited.

The bank has since instituted legal proceedings against the company where it is demanding a total of E53 212 734 which the latter reportedly borrowed at different instances during the construction of the Siteki Mall. Other defendants in the matter are Norman Sigwane, Timothy McSeveny, Nicholas Charles McSeveny, Mcebo Mbhuti Dlamini and Collin George Ries.
It is alleged that as security for the due performance of their (defendants) obligations in terms of the loans agreements, the defendants offered first mortgage over Portion 149 and 140 of Flame Free Park, Siteki and assured that upon completion of the mall, the property would have a market value of e86 794 000.

In its first claim, the bank alleges  that on May 9, 2018, it lent the company a sum of E2 million and the facility was for the purpose of bridging finance for the payment of value added tax (VAT) while developing a commercial property in Siteki town. In breach of their obligations in terms of the loan payment agreement, Lubombo property group purportedly failed to maintain regular and punctual payments resulting in the account being constantly in arrears. These are allegations contained in particulars of claim whose veracity is still to be tested in court and the respondents in the matter are yet to file their papers in the event they are disputing the claim against them.

Arrears

The bank averred that the arrears were brought to the attention of the company by a letter dated January 23, 2020 and at that stage the arrears were E1 684 298. In the second claim the bank stated that on May 9, 2018, the parties entered into a written loan agreement in that the bank lent and advanced E25 million to the company and the facility was for the purpose of commercial housing loan for the development of a mall in Siteki town. “Repayments were at the rate of E380 200 payable on or before the 30th day of each month. The client may within the repayment period redraw the facility for purposes of purchasing other assets.

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