9 May 2017

Zimbabwe: Council Sued $400k

Photo: Jerry Chifamba/allAfrica
(File photo).

Harare City Council has been dragged to court over failure to pay one of its service providers a debt amounting to $407 000.

Fairclot Investments, which trades as Trucking and Construction Civil Contractors, hired out its construction equipment and supplied construction services and goods to the local authority.

In terms of the agreement, council was supposed to pay for the services, equipment and goods.

Council reportedly failed to pay the debt, resulting in the construction firm approaching the High Court with a claim.

In the summons filed by Mutumbwa, Mugabe and Partners, Fairclot is claiming a total of $407 214,83 plus interest calculated at the rate of five percent per annum from the date of issuance of the summons to the date of payment of the debt in full.

According to the plaintiff's declaration, between April 2015 and July 2016, council engaged Fairclot on different intervals for the supply of construction goods, equipment hire and construction services for road construction projects.

The services, equipment and goods were supplied to the local authority on the strength of an agreement.

A bill of $407 214,83 was sent to council, but no payment was made.

Despite demand, council has failed or refused to pay the debt.

Fairclot was indicated in the declaration that it was forced to engage in expensive litigation and that council must pay the costs of the suit on a higher scale. City of Harare is yet to respond to the claim.


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