Bulawayo business mogul dragged to court

Bulawayo businessman Raj Modi has been dragged to court by a local company dealing in electronic cash transfers for failing to remit almost $300,000 in unpaid commission for services rendered.

The company, Smart Cash for Africa, last week filed summons at the Bulawayo High Court seeking an order compelling Modi to settle $294,498,85 in commission which he is alleged to have failed to remit to the cash transfer firm between September 2014 and February 2015.

In court papers, Smart Cash for Africa is cited as the sole plaintiff while Modi, Sai Enterprises and Nanavac Investments were cited as the defendants.

Smart Cash for Africa through its lawyers Dube-Banda, Nzarayapenga and Partners accuses the defendants of violating the terms of their agreement.

Smart Cash for Africa entered into an agreement with Bulawayo City Council employees and Modi in his capacity as director and representative of Sai Enterprises trading as Bellevue Spar.

The parties agreed that BCC workers would purchase groceries from Bellevue Spar on a stop order facility using Smart Cash for Africa's account.

Employees who were interested in the facility completed application forms and the successful candidates were subsequently issued with smart cards for use in buying groceries from Bellevue Spar.

For every purchase made by BCC workers using the facility, Modi was entitled to a four percent mark-up which he received in his personal capacity and on behalf of his supermarket as a credit funder.

In terms of the agreement, Smart Cash for Africa would reconcile all the figures and charge commission on top of the submitted invoice to its account.

Smart Cash for Africa would then submit to council the reconciled invoice reflecting the total cost of groceries and Modi's four percent mark-up as well as its commission.

Payments would then be deducted from the purchaser's salary and credited to the supermarket's account.

Smart Cash for Africa's lawyers said in November 2013, Nanavac Investments t/a Bellevue Choppies entered into an agreement with Bellevue Spar represented by Modi.

When Nanavac Investments later bought Bellevue Spar, the stop order facility continued on the same terms and conditions.

"As from September 2014, payments were made directly to Nanavac Investments with Modi retaining his four percent mark-up entitlement on all transactions done," said the lawyers.

Smart Cash for Africa said on several occasions during the period extending from September 2012 to August 2014, payments for groceries were received by Bellevue Spar on a monthly basis from BCC workers together with interest, but Modi failed to remit their commission.

The plaintiff's lawyers said despite lawful demand, Modi has failed, neglected or refused to remit the outstanding commission accrued between September 2014 and February 2015.

"Wherefore plaintiff claims against defendants jointly or severally, one paying the other absolved an order for payment of $294,498,85 being the commission due to plaintiff for goods sold to BCC workers," added the court papers.

Smart Cash for Africa is also demanding that Modi pays interest at a prescribed rate calculated from April 9, 2015 to the date of full payment and the cost of suit at attorney-client scale.

Modi has not yet filed a notice to enter an appearance to defend the summons, but the businessman has 10 days to file opposing papers with the Registrar of the High Court.