Spiritist preacher, Walter Magaya has fallen on hard times and risks losing his massive guest house.

The leader of the Prophetic Healing and Deliverance (PHD) Ministries and his wife, Tendai, are under a High Court probe for failing to repay a US$23 million loan to Homelink Finance (Private) Limited, having bound themselves as surety and co-principal debtor.

The loan extended to Yadah Connect (Private) Limited last year.

Failure to service the loan, Magaya risks losing his guest house in Waterfalls, Harare, which was tendered as security for the loan. The spiritual leaders also offered mining machinery, equipment, and vehicles financed under the facility as security.

The creditor, Homelink, through its lawyers, Shomwe-Nyakuedzwa Attorneys is arguing that the defendants breached the loan agreement, hence an order compelling them to pay should be issued.

Magaya and wife were supposed to pay 33 months instalments of US$784 873,62 inclusive of interest, with effect from December 31 last year.

Magaya had not responded to the civil claim, last night.