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FNB SUES PRINCE THUMBUMUZI FOR OVER E5.6M

06/04/2018 07:43:00 BY KWANELE DLAMINI

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MBABANE – First National Bank (FNB) Swaziland has taken Prince Thumbumuzi to court over a debt of over E5.6 million.

The bank is demanding payment of the sum of E5 617 253.17 from the prince, which is in respect of an alleged overdraft of E5 million.
FNB also wants the court to order that the property which was mortgaged by Prince Thumbumuzi when he concluded the agreement with the bank, be executable.

According to the bank’s combined summons, the prince and FNB entered into an agreement in Mbabane on September 8, 2014 in terms of which he was allegedly granted a short-term direct facility (overdraft) in the sum of E5 million for a period of 12 months.

The bank was represented by its Chief Operating Officer - Commercial Banking, Nicholas Anadyr. The prince allegedly represented himself.
The veracity of these allegations is still to be tested in court and the prince is yet to file his responding papers.

Prince Thumbumuzi, according to FNB, provided collateral security in the form of a continuing covering bond in the amount of E5million, which was to be registered in favour of the bank over his immovable property.
The immovable property was described as the remainder of Portion 99 (a Portion of Portion 64) of Farm No. 50 situated in the Hhohho region.

The property measures 5.0117 hectares and it is held by Prince Thumbumuzi under Deed of Transfer No. 245/1980 dated September 30, 1980.
The overdraft amount, according to the terms of the agreement, was to be repaid on or before September 30, 2015, charged at the bank’s prime lending rate, including one per cent interest per annum.
The bank submitted in the summons that the parties agreed that should the prince breach any term and/or condition of the credit facility granted, FNB would demand that he placed on deposit an amount equal to any existing, contingent or pre-settlement liability.

The bank, which is represented by C.J. Littler and Company, informed the court that following the registration and execution of the mortgage bond, FNB duly advanced the prince the amount of E5 million.
Prince Thumbumuzi, according to FNB, failed to pay the overdraft within the stipulated period of 12 months.
The bank allegedly issued a letter of demand to the prince for the payment of the amount due.

“Notwithstanding the demand to pay, the defendant (prince) has failed and /or refused or neglected to pay or comply,” alleged the bank.
It was further submitted by the bank that as of December 19, 2017, the prince allegedly owed a sum of E5 617 253.67.