State Media|PROPHETIC Healing and Deliverance (PHD) Ministries leader Walter Magaya and his wife, Tendai, have been taken to the High Court for failure to repay a US$23 million loan to Homelink Finance (Private) Limited.
Magaya and his wife bound themselves as surety and co-principal debtor to a loan extended to Yadah Connect (Private) Limited last year.
He risks losing his sprawling property in Waterfalls, Harare, which is used as a guest house.
Stand numbers 167 and 168 of Prospect, Harare, measuring a combined 7,9 hectares, were tendered as security for the loan and they become executable upon failure by the debtors to service the loan.
They also offered mining machinery, equipment and vehicles financed under the facility as security.
Homelink, through its lawyers, Shomwe-Nyakuedzwa Attorneys filed summons for provisional sentence against Mr and Mrs Magaya as well as Yadah Connect.
The company argues that the defendants breached the loan agreement, hence an order compelling them to pay should be issued.
Homelink, according to the papers filed at court, extended a facility of US$23 338 745 to Yadah Connect in 2018.
The parties agreed that the loan would be repaid in 33 monthly instalments of US$784 873,62 inclusive of interest, with effect from December 31 last year.
Repayment, according to the papers, was to be paid in US dollars.
Interest on the loan facility, according to the agreement, should be charged at the aggregate rate of 7,5 percent per annum but subject to change in line with the prevailing market conditions.
Magaya is yet to respond to the civil claim.