Home » General » Chiyangwa Bought U.S $500k Limo but His Company Reportedly Owes Bank U.S $2 Million

HARARE property tycoon and Zanu PF politician, Phillip Chiyangwa has angrily rejected allegations he owes the Econet Wireless-owned Steward Bank about US$2,1 million which he has failed to pay.

The revelation comes at a time the flashy businessman publicly paraded a bespoke stretch limousine which he claimed to have acquired for about US$500,000.

The country’s largest mobile phone operator took over the former TN Bank, rescuing the institution from the brink of collapse. The bank is now moving to recover non-performing loans dished out before the Econet rescue.

According to business news agency The Source, Steward Bank, is considering swapping residential stands worth $2,1 million to recover funds borrowed by a property firm owned by Pinnacle Property Holdings.

Chiyangwa, popularly known for flaunting his wealth, owns the company.

He however, denied owing the bank any money, telling The Source: “Why are you interested in writing about my business?

“Has the bank asked you to call me? I last dealt with TN seven years ago and I do not owe them anything.”

“Don’t you have any other issues to write about? I built my empire on my own.

But confidential documents seen by the news agency show that Pinnacle Property Holdings owes $2,170,763.78 despite surrendering collateral worth $720,000 as security.

“We have a proposal to swap a block of residential stands with this debt. The proposal is being considered by the Board Risk and Compliance Committee,” former chief executive, Kwanele Ngwenya wrote to bank executives in August last year.

“Debt can be transferred to SPV (Zamco) but there will a huge discount as there are no cash flows. The Bank is better off by accepting the proposal and transfer of the property can be effected within 90 days.”

Source : New Zimbabwe

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