News / National
Fertiliser company sues senior Zanu-PF official over $24 000 debt
09 Apr 2013 at 03:20hrs | Views
Fertiliser company Windmill has taken former ambassador to China Christopher Mutsvangwa to court after he allegedly failed to pay more than $24 000 for agriculutural inputs extended to him in a loan facility.
Through its lawyers Scanlen and Holderness the company claims that between March 2010 and May 2011 at Ambassador Mutsvangwa's instance and request Windmill supplied fertilisers and chemicals in terms of a credit facility to him for use at his Monchris Farm.
The ambassador collected fertilisers and chemicals worth US$31 396 from Windmill for which he paid a small part.
The company says the payment for the fertilisers and chemicals were due within 180 days of the date of the invoices which Ambassador Mutsvangwa failed or neglected to pay.
As of September 2011, Ambassador Mutsvangwa had accumulated total arrears of US$25 646 calculated at five percent per annum.
In January last year, Ambassador Mutsvangwa paid US$8 000 to Windmill and is alleged to have neglected paying the outstanding amount of US$25 414 and despite demand, the company says he has refused and/or neglected to pay the amount.
Windmill wants the court to order that he pays US$24 414 with interest at prescribed rate from date of judgement to the date of full and final payment. It also wants him to pay the cost of the suit.
Ambassador Mutsvangwa, through his lawyers W.O.M Simango and Associates, agrees to the other particulars, but argues that the agreement did not have a term to the effect that payment was to be done within 180 days and it follows that the interest claimed on the basis of the 180 days falls away.
He argues that the parties agreed that payment of the credit was to be done by selling produce of maize and soya beans realised from the harvest.
"Unfortunately, there were erratic rains sometime between December 20, 2010 to January 2011 resulting in crops being affected severely by drought," said Ambassador Mutsvangwa.
"Overally, there was low productivity resulting in little produce for which amount has already been paid to the applicant."
Ambassador Mutsvangwa denies that he neglected to pay the debt, but he did not realise much produce to cover the debt, adding that the contract was no longer capable of performance.
The matter is still to be heard.
Through its lawyers Scanlen and Holderness the company claims that between March 2010 and May 2011 at Ambassador Mutsvangwa's instance and request Windmill supplied fertilisers and chemicals in terms of a credit facility to him for use at his Monchris Farm.
The ambassador collected fertilisers and chemicals worth US$31 396 from Windmill for which he paid a small part.
The company says the payment for the fertilisers and chemicals were due within 180 days of the date of the invoices which Ambassador Mutsvangwa failed or neglected to pay.
As of September 2011, Ambassador Mutsvangwa had accumulated total arrears of US$25 646 calculated at five percent per annum.
In January last year, Ambassador Mutsvangwa paid US$8 000 to Windmill and is alleged to have neglected paying the outstanding amount of US$25 414 and despite demand, the company says he has refused and/or neglected to pay the amount.
Windmill wants the court to order that he pays US$24 414 with interest at prescribed rate from date of judgement to the date of full and final payment. It also wants him to pay the cost of the suit.
Ambassador Mutsvangwa, through his lawyers W.O.M Simango and Associates, agrees to the other particulars, but argues that the agreement did not have a term to the effect that payment was to be done within 180 days and it follows that the interest claimed on the basis of the 180 days falls away.
He argues that the parties agreed that payment of the credit was to be done by selling produce of maize and soya beans realised from the harvest.
"Unfortunately, there were erratic rains sometime between December 20, 2010 to January 2011 resulting in crops being affected severely by drought," said Ambassador Mutsvangwa.
"Overally, there was low productivity resulting in little produce for which amount has already been paid to the applicant."
Ambassador Mutsvangwa denies that he neglected to pay the debt, but he did not realise much produce to cover the debt, adding that the contract was no longer capable of performance.
The matter is still to be heard.
Source - TH
