EX-MINISTER AGREES TO PAY E598 573 OWED TO SWAZIBANK

MBABANE – Former Minister of ICT Nelisiwe Shongwe has agreed to repay the sum of E598 573 she owes to SwaziBank.

Shongwe entered into an agreement with lawyers representing the bank where she made an undertaking to repay the amount in monthly instalments of E15 000 with effect from December 31, 2014.

The ex-minister’s agreement comes after the bank instituted legal proceedings against her after she allegedly failed to service the loan as per the agreement between the parties. According to papers filed at the High Court Shongwe (defendant) and the bank (applicant) entered into a written contract of a loan agreement at the instance and request of the former.

The material terms of the contract were that the bank lends and advances Shongwe the sum of E745 000. The purpose was for a personal loan, which finance liability would be repaid by the borrower over a period of one month commencing on June 1, 2013 until June 30, 2013. The loan would bear interest at the rate equal to prime plus seven per cent per annum and that the loan repayment would be in a form of a bullet repayment to expire on June 30, 2013.

The bank duly discharged all its contractual obligations and advanced Shongwe the loan.  “However, the defendant has failed to discharge her obligations in terms of the agreement,” stated the bank.

“The defendant made payment towards settling the loan in the amount of E306 648 .20, as this was the only amount that the plaintiff received from the Swaziland Government as gratuity for the defendant.

“The plaintiff sent to the defendant various letters demanding repayment for the loan and notifying the defendant of the accumulating interest on the loan. Despite these demands, no payment has been forthcoming.

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