Home » General » Zimbabwe: Agribank to Auction Former Legislator, 17 Others’ Properties

FOUR companies and 14 individuals who have defaulted servicing loans to agro lender, Agriculture Bank of Zimbabwe (Agribank) will have their assets placed under the hummer by the State institution on August 5, according to a notice in the Government Gazette of July 15.

The sale will be conducted in terms of the rules of the High Court which provided that it shall be without reverse but subject to conditions that the bank requires to be satisfied that the highest prices offered is reasonable, having regard to the circumstances of time and place and the state of the property.

The Government Gazette said the assets, which mainly include residential and industrial stands, would be conducted at Raylton Sports Club.

The quantum of the loans in default would not be established on Tuesday.

Among the cited 14 individuals is former ZANU-PF Hurungwe West legislator, Phone Madiro, who is also a ZANU-PF Central Committee member, whose assets in Karoi will be sold.

"After the property is put on the bidding, the highest price offered together with any other relevant information relating to the sale will be forwarded to the bank which if satisfied that the highest price offered is reasonable, having regard to the circumstances of time and place and the state of the property will declare the highest bidder to be purchaser," read the Government Gazette.

In May Agribank, which has previously indicated that it required more funding to operate viably, said it approached government for cash injection to shore up its capital to US$100 million, as it prepares to engage offshore lenders for lines of credit in the aftermath of its removal from United States sanctions.

Agribank was blacklisted by the US government's Office of Foreign Asset Control (OFAC).

OFAC is a department of the US Treasury that enforces economic and trade sanctions against countries, groups and individuals involved in terrorism, narcotics and other disreputable activities.

OFAC slapped Agribank, together with ZB Bank, with sanctions in 2007 after accusing them of propping up President Robert Mugabe's government, then accused of human rights violations and stealing elections.

The bank, established by government to act as the heartthrob for agricultural funding recorded a US$3,2 million reduction in losses after tax for the year ended December 31, 2015, after net interest rose by 11 percent to US$8,2 million, from US$7,3 million the previous year.

It had posted a US$9 million loss after tax during the comparable period in 2014.

Source: Financial Gazette.