24 March 2009

Zambia: Hotel Inter-Continental Sues Zambian Airways

HOTEL Inter-Continental has sued the defunct Zambian Airways for non-payment of rentals for their three offices amounting to over US$11,000.

According to summons filed at the Lusaka High Court, the applicant wants Zambian Airways to pay the five months' rental arrears of $11,344.32 in full.

The applicant is also seeking an order that it be granted leave to levy distress on the respondent's goods to recover the said outstanding rentals, further relief and any other interests.

An affidavit of originating notice of motion, sworn by George Joseph, assistant manager for finance and business support, states that on May 1, 2006, the applicant leased its three shops to the defunct airline at monthly rentals of $2,893.62.

He says Zambian Airways failed, ignored and/or neglected to settle rentals since October last year and had locked up the shops and abandoned them without explanation.

"According to the certificate of exhibits, the lease period was four months two years and Zambian Airways only paid $6,600 as deposit and monthly rentals were at $2,893,62 excluding VAT and payable on a quarterly basis," said Mr Joseph.

He says on February 10, counsel for the hotel, Nhari Musheni, wrote to the airline's chief executive officer, Mutembo Nchito, to inform him that the hotel wanted immediate settlement of the debts and an explanation regarding the airline's position over the abandoned offices.

"Take note that our client requires your response within seven days to the demands alluded to failure to which they may commence legal actions," he said.

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