Zanu-PF MP loses $18m in botched fuel deal

Mayor Logistics Private Limited, a company owned by Gokwe-Nembudziya legislator Justice Mayor Wadyajena, has lost its $18 million claim for breach of contract against Sakunda Energy, after the High court ruled that the two had no valid agreement.

Wadyajena signed an agreement with an employee of Sakunda Logistics for Mayor Logistics to be the sole local transporter and distributor of fuel on behalf of Sakunda Energy Private Limited.

It later turned out that the employee who signed the agreement, Mr Archie Ngwenya, had no authority to sign on behalf of Sakunda Energy.

While Sakunda Energy sought the nullification of the said agreement , Wadyajena filed a counter-claim for the petroleum firm to pay him damages for loss of business to the tune of $18 million.

After a full hearing and convincing arguments by Sakunda Energy's lawyer Mr Wellington Pasipanodya of Manase and Manase law firm, High Court judge Justice Priscilla Chigumba dismissed the $18 million claim and declared the purported agreement null and void.

"It is my view therefore that the plaintiff (Sakunda Energy) is entitled to the declaratur that it seeks because the evidence has shown that the signatory to the agreement that is in dispute did not possess the actual or ostensible authority to bind the plaintiff as he did by entering into the agreement of December 6, 2012 on its behalf," said Justice Chigumba.

"The agreement was void ab initio based, a nullity. The defendant did not adduce sufficient evidence to prove its counter-claim, which was based on estimates of the loss of income allegedly incurred and not actual figures. In light of the finding that the agreement was null or void, the counter-claim is dismissed for lack of legal basis and merit."

Wadyajena, who testified as a witness, said he had a long association with the founder of Sakunda Energy, Mr Kuda Tagwirei. He indicated that he started transporting fuel for Sakunda Energy in 2010 based on verbal agreements. In 2012, Wadyajena said, Mr Tagwirei asked him to be the sole transporter within Zimbabwe because of his efficiency.

Wadyajena said his fleet of trucks was growing while Sakunda was incurring losses. He said he communicated with Sakunda about the deal via email and Mr Tagwirei delegated Mr Ngwena to sign the agreement on the company's behalf.

He told the court that Sakunda later reneged on the agreement by failing to hand over its entire distribution department to Mayor Logistics as agreed.

But Sakunda Energy representatives disputed the claim, saying the agreement signed by Mr Ngwenya had nothing to do with the company because he had no authority to do so.