By Deeslie Mondoka
CAN A BANK IN ZAMBIA TAKE MONEY FROM AN ACCOUNT YOU OWN WITH YOUR SPOUSE TO PAY OFF YOUR SPOUSE’S PERSONAL DEBT?
Picture this:
Mr. and Mrs. Phiri have a joint bank account. Think of it as the household “insaka of money.” Salary goes in. School fees come out. Rent is paid. Occasionally, there is even enough left over for a family outing and a stop at Hungry Lion.
One day, Mr. Phiri and his business friend decide to guarantee a massive company loan from the bank. Mrs. Phiri is not involved. She signs nothing. Nobody asks her opinion. In fact, if you had asked her what a “personal guarantee” was, she might have replied, “Is that one of those new mobile money bundles?”
Unfortunately, the business collapses faster than a Lusaka Road after the first heavy rains. The bank obtains judgment against Mr. Phiri and his business partner. So far, so good.
But then the bank decides to take a shortcut.
Instead of collecting the money from the people who actually owed the debt, it reaches into the joint account belonging to Mr. and Mrs. Phiri and helps itself to almost US$1 million.
Mrs. Phiri understandably loses her composure.
“Wait a minute,” she says. “I did not borrow this money. I did not guarantee this loan. I wasn’t even invited to the meeting where these bright ideas were discussed. So why is my money disappearing like free food at a kitchen party?”
The Supreme Court agreed with her.
The judges said that a joint account is exactly that: joint. One account holder cannot use the other’s share to settle a personal debt. Being married does not mean becoming an automatic co-sponsor of every business adventure your spouse undertakes.
The Court bluntly observed that the bank was trying to flog a dead horse. The law simply did not support its position.
WHAT DOES THIS MEAN FOR ORDINARY ZAMBIANS?
It means that if your spouse, business partner, or fellow account holder gets into personal debt, a bank cannot simply raid your joint account to recover that debt unless you also agreed to be responsible for it.
The moral of the story:
A joint account is like a field cultivated by two people. One farmer cannot harvest and deliver the entire maize crop to his creditor because of a debt he incurred buying a second-hand Canter truck without consulting the other farmer.
After all, marriage may make you partners in life, but the Supreme Court reminded everyone that it does not automatically make you partners in each other’s debts.
Disclaimer:
My commentary on this decision is no more a legal critique than a campfire tale is a treatise on thermodynamics. It is, rather, a dramatized retelling, a lively reenactment if you will, of the judicial clash, unburdened by the solemn drudgery of analysis and delivered with the unapologetic zest of a storyteller who knows a good duel when he sees one.
You can find the full judgment in the link below:
https://judiciaryzambia.com/scz-8-037-2019-finance-bank-zambia-ltd-and-dimitros-monokandilos-1-other-oct-2023-justice-musonda-mutuna-and-chisanga-jjs/
