Dynamos defaults on loan repayment

According to Lyndon Miles, who operates a micro-finance company in Harare, the money that he said adds up to more than US$12 000 if interest is added was used by Dynamos to pay for the services of striker Cuthbert Malajila, who DeMbare signed on loan from Chapungu FC.

Malajila has been on and off the field for Dynamos because Chapungu have on several occasions withdrawn the player from DeMbare charging that the Harare club has not fully paid for the player. Dynamos chairman Farai Munetsi confirmed the dispute with Miles but was quick to point out that DeMbare were working hard to raise cash to settle the debt. “What I can say at this stage is that we will pay. We have tasked people to handle this issue. It will be resolved,” he said.

However Miles, who has accused DeMbare of acting in bad faith over the loan deal, is threatening to sell one of the Harare clubs key players, Benjamin Marere, to raise the amount he is owed, after DeMbare apparently signed off rights to the player to the businessman as surety for the loan. According to confidential correspondence between the club and the businessman copies of which were shown to The Zimbabwean on Sunday last week, Miles said he would invoke his rights under the loan agreement if Dynamos do not play ball.

Apparently Dynamos, who are probably the countrys best supported club and regularly draw large crowds to their matches, were able to pay back part of the money but have since missed installments for July and August. In one of the documents shown to us, Miles wrote: “The power of attorney I have, signed by Dynamos’ chairman, Farai Munetsi, also the FD (financial director) of Nestle Zimbabwe, allows me to sell Marere to another club under a security pledge agreement I have, also signed by Munetsi.

We have been trying to contact Mr. Munetsi for some weeks now but he is not returning calls, texts or emails right now. This is of course not the best way to deal with matters.” Miles said in the document that should any club come up with an offer for Marere he would invoke his rights and sell the player to recoup the money loaned to DeMbare.

“We had entered into a lending transaction with Dynamos in good faith. As would be logical, fair and legal we expect that people will uphold their end of the deal . we will not allow defaulters to escape, the businessman said in the letter.