News / National
Gono's business sued over chicken feed
05 Aug 2018 at 09:53hrs | Views
Profeeds (Pvt) Ltd has petitioned the court seeking an order to compel former Reserve Bank of Zimbabwe governor Gideon Gono's Lunar Chickens company to pay $89 517 for chicken feed allegedly supplied to it over four years ago.
Profeeds issued summons against Lunar Chickens alongside Velenjani Lupankwa, Levi Maundura and Tenbach Investments (Pvt) Ltd on July 13, through its lawyers Gwaunza and Mapota Legal Practitioners.
However, Gono's firm, together with the co-defendants, is yet to defend the litigation.
In its declaration, Profeeds said sometime in January 2014, it entered into an agreement with Lunar Chickens for the sale of feed to it on credit and in terms of the agreement, Gono's business would purchase feed on credit payable within 30 days of delivery.
"It was also agreed that any amount not paid on due date would become due and payable to the plaintiff (Profeeds) and defendant (Lunar Chickens) would be liable for interest at the rate of 2% above the publicly quoted prime overdraft rate charged by Standard Chartered Bank," the firm said.
The firm further said Lupankwa bound himself as surety and co-principal debtor with Lunar Chickens, while Tenbach Investments (Pvt) Ltd passed a $100 000 surety mortgage bond in favour of Profeeds as continuing covering security.
According to the feed firm, it also paid bond registration fees of $3 300 on behalf of Lunar Chickens on October 20, 2014, which fees had not been refunded to it.
"Despite demand, the defendants have failed or refused to pay the sum of $89 517 plus interest thereon at the rate of 11% from May 23, 2014 to the date of payment in full," Lunar said.
Profeeds issued summons against Lunar Chickens alongside Velenjani Lupankwa, Levi Maundura and Tenbach Investments (Pvt) Ltd on July 13, through its lawyers Gwaunza and Mapota Legal Practitioners.
However, Gono's firm, together with the co-defendants, is yet to defend the litigation.
In its declaration, Profeeds said sometime in January 2014, it entered into an agreement with Lunar Chickens for the sale of feed to it on credit and in terms of the agreement, Gono's business would purchase feed on credit payable within 30 days of delivery.
"It was also agreed that any amount not paid on due date would become due and payable to the plaintiff (Profeeds) and defendant (Lunar Chickens) would be liable for interest at the rate of 2% above the publicly quoted prime overdraft rate charged by Standard Chartered Bank," the firm said.
The firm further said Lupankwa bound himself as surety and co-principal debtor with Lunar Chickens, while Tenbach Investments (Pvt) Ltd passed a $100 000 surety mortgage bond in favour of Profeeds as continuing covering security.
According to the feed firm, it also paid bond registration fees of $3 300 on behalf of Lunar Chickens on October 20, 2014, which fees had not been refunded to it.
"Despite demand, the defendants have failed or refused to pay the sum of $89 517 plus interest thereon at the rate of 11% from May 23, 2014 to the date of payment in full," Lunar said.
Source - the standard
