24 Sep, 2019 | Posted By:
Joyce Mujuru Fights Bankruptcy

Former Vice President Joice Mujuru and her company, Ruzirun Investments, have approached the High Court seeking an order stopping a couple she owes money from attaching her property as she fears going “under liquidation or facing multiple claims”
Mujuru owes over US$226 000 to Sabrina and Tony Sarpo, through their company Peppy Motors (Pvt) Ltd, which is demanding the money at the interbank rate.
In her application for stay of execution, Mujuru said the company had issued a writ of execution and notice of attachment despite an application for rescission of judgment under HC6283/19.
“The applicant will suffer proprietary and pecuniary losses and the execution will leave the applicants’ 80 employees in untold tribulation,” Mujuru’s lawyers argue.

“Execution by the respondents will not end the applicant’s miseries, its inability to pay off the other creditors will invariably mean that it will have to go under liquidation or face multiple claims which will result in the loss of all its assets.”

Sometime in 2012, Sabrina and Tony Sarpo, who are in the business of selling agriculture and farming equipment, obtained a loan from Steward Bank which they used to obtain various farming machinery.

They sold the equipment to Mujuru’s company and an agreement of sale was entered into on July 25, 2015. The couple issued summons under HC2954/18 for payment of outstanding amounts and interests. Parties entered into a deed of settlement on May 25, this year after Statutory Instrument 33 of 2019 had been gazetted.

The applicant interpreted that the debt though denominated in US$, could be paid by RTGS dollars. First payment of $76 000 was made on June 5 this year. Four days later, the applicant requested payment at interbank rate.

In the deed of settlement, parties agreed that Mujuru pays the capital sum of $226 000 and $226 000 in interest. She was also to pay the capital debt within three months in monthly instalments of $76 000.
Mujuru was dragged to the High Court as Peppy Motors, represented by its lawyer Mr Tapson Dzvetero, sought to recover the money it paid to Mujuru’s bank, Stewart Bank.
She had entered into a loan facility agreement in terms of which Steward Bank advanced a capital sum of US$350 000 for the purchase of various tractors from Peppy Motors.
Sarbrina and Tony Sarpo of Peppy Motors bound themselves as surety to the loan advanced to Mujuru by her bank.

In its claim filed at the High Court, Peppy Motors now seeks an order compelling Mujuru and her company Ruzirun Investments (Pvt) Ltd, to settle the debt now standing at US$387 583.22.

During a pre-trial conference before Justice Priscilla Munangati-Manongwa, Mujuru’s lawyers concede they had no defence and chose to hammer a settlement.

This will give the former VP a chance to liquidate her debt with Peppy Motors.

According to the deed of settlement, Mujuru will now pay US$452 000 with effect from June 30 this year.

“Judgment with cost on a legal practitioner’s scale be and is hereby entered against the first and second defendants (Mujuru and Ruzirun Investments) jointly or severally the one paying the other to be absolved from the payment of (a) US$226 000 being the capital debt due to the plaintiff (Peppy Motors), (b) US$226 000 being the interest on capital debt due to plaintiff,” the consent order read.

It was also agreed that the capital debt, interests and costs of suit shall be paid in terms of a deed of settlement executed between the parties with effect from June 30, this year.