News:Insurance company sues former Zanu PF legislator over 400K debt
Butau committed himself as surety and co-principal debtor in respect of a $300 000 loan that was extended to the principal debtor, Ele Resources (Pvt) Ltd, being financial guarantees in favour of Hwange Colliery Company.
In its declaration filed alongside the summons, Alliance Insurance Company said the agreement was signed on September 25 last year. However, the insurance firm said after Ele Resources defaulted on its obligations, it was automatically entitled to seek payments from Butau in his capacity as surety and co-principal debtor.
Butau entered his appearance to defend notice on June 29 this year.
Read More: NewsDay
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