April 11 2010: Car mogul and businessman, Satar Dada, has cleared the late Louis Nchindo’s debt with Bank Gaborone.
The bank had threatened to apply to the High Court to wind up Tourism Development Consortium (TDC) if the company failed to settle an outstanding amount of P15 million.
“The bank has been paid and the matter has been settled,” said Dada
“The Nchindos don’t owe anybody money,” he added.
He, however, refused to disclose whether the money was a loan to TDC or just a good gesture on his part.
“I can only say that the matter has been settled and the debt has been paid,” he stated.
Bank Gaborone lawyers, Collins Legal Consultants, had informed TDC through a letter dated February 26th this year that Nchindo owed the bank P15 099 700.
The loan from Bank Gaborone followed a decision by Stanbic bank to withdraw its loan to TDC after government blocked the sale agreement of the land.
It has been revealed to the Sunday Standard that, at the time, Stanbic bank refused to release the money because it was worried about the future of the project. This was a result of the Directorate of Public Prosecutions (DPP)’s decision to charge the late Nchindo and his company, among others.
So far, a considerable amount of infrastructural work has already been carried out at TDC’s controversial plot. This includes the laying and tarring of roads as well as construction of storm water drains for which the contractors are reported to be demanding payment.
The company had also entered into a number of agreements, including the sale of residential and commercial plots. The total cost of the money that has been pumped into TDC’s plot is estimated to be around P50 million. It is understood that the late Nchindo had to sell some of his assets to finance the developments at TDC’s plot.