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Zimbabwe: Firm Accused of Fraud
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 Published by the government of Zimbabwe |
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The Herald (Harare)
16 May 2008
Posted to the web 16 May 2008
Harare
KM Auctions (Private) Limited has been provisionally interdicted from doing business on behalf of Zimbabwe Parks and Wildlife Management Authority and the State Procurement Board pending an investigation into fraud allegations involving US$900 000 and $15 trillion.
Administrative Court President Mrs Mary Zimba-Dube granted the provisional order following an urgent chamber application by West End Auctions that lost the tender to KM Auctions.
Mrs Zimba-Dube gave West End Auctions up to 10 days to institute action against KM Auctions in terms of the Procurement Act before the court makes a final ruling. "Pending the confirmation or discharge of this provisional order, the first respondent (KM Auctions) is hereby interdicted from carrying on any auctions on behalf of the second, third and fourth respondents (Parks and Wildlife Management Authority, its director general and the State Procurement Board). "Applicant is directed to institute an action against the first respondent in terms of either section 48 or 46 or any other section of the Procurement Act Chapter 22:14 within 10 days of the date of this order.
"If he fails, without good reason being shown on the return date to have instituted such action that date, the court, in its discretion shall make such order as it deems," read the order. According to West End managing director Mr Tinofara Hove's founding affidavit, on 27 November last year, his firm together with KM auctions were invited by Parks and Wildlife Management Authority and its director general to participate in the tender for provision of auction services.
It is alleged that on December 17, a day before the closing date of the submission of the tender documents to the State Procurement Board, West End submitted its proposal for a zero percent charge commission to Parks and 0,1 percent to the buyer of the auctioned goods.
Mr Hove further stated that KM proposed to charge zero percent to Parks and 0,000001 percent to the buyer, which resulted in his company losing the bid. It is alleged KM then decided to charge an administrative fee of eight percent for sales in foreign currency and 9,2 percent on local currency and a further $250 million for its catalogues after winning the tender.
According to West End Auctions, by March 27 this year KM had realised US$900 000 and $15 trillion from auction sales at Parks Zambezi Valley Camps. Opposing the application, KM Auctions managing director Mr Keni Mubaiwa counter-argued that the contract had not been breached and that Mr Hove, being a loser was just trying to abuse court proceedings.
"The contract has not been breached therefore the balance of convenience surely lies with the dismissal of this application," said Mr Mubaiwa.
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It was also submitted that West End failed to meet the requirements of an interdict, of which the application was defective. Parks director general Mr Moris Mutsambiwa said the allegations were criminal and should be dealt with by a criminal court.
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