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Lupepe to get $1,8m in botched up deal

by Staff reporter
08 Dec 2017 at 04:58hrs | Views
THE High Court has ordered Bulawayo firm, Yatakal Trading (Pvt) Limited trading as Viking Hardware Distributors, to reimburse over $1,8 million to Ilasha Mining (Pvt) Limited following a botched mining equipment supply deal.

Ilasha Mining managing director Delma Lupepe had filed an ex parte chamber application to recover the money paid to Yatakal Trading before the deal collapsed.

Bulawayo High Court judge Justice Martin Makonese last week ordered Yatakal Trading to transfer Ilasha Mining's $1 808 829 into Newmatic Tools' ZB Bank account.

"The respondent be and is hereby ordered to pay the costs of suit on an attorney and client scale if it opposes this application," Makonese ruled.

"Pending finalisation of this matter, the applicant is hereby granted that the respondent shall forthwith and upon service of the provisional order cause to pay $1 808 829 into Newmatic Tools account. Failing the bank manager of Barclays Bank Belmont be and is hereby authorised and directed to pay the sum from respondent's account into Newmatic Tools account ZB Bank."

In his application, Lupepe said Yatakal Trading received $1 808 829 from Fidelity Printers and Refineries (Pvt) Limited to hold in trust and subject to agreement with the applicant (Ilasha mining) for purchase of equipment.

"The applicant and respondent failed to reach agreement on the purchase price of the various equipment and consequently, the applicant demanded refund. The respondent has failed to refund the money," the ex parte application read.

"The applicant has secured another supplier … and the applicant has entered into agreement with the supplier … to make payments by December 4, 2017. Any delay will attract not only breach of contract, but the prices keep escalating as the economy is volatile."

Lupepe said on September 6, 2017, his company entered into a $2,5 million loan facility arrangement with Fidelity Printers and Refineries. The agreement was that applicant would repay the loan on or before December 12, 2017 in view that the firm would have by that time purchased the equipment and revived the business to full operation.

"Applicant identified the respondent as a supplier, advised the Fidelity Printers to pay the loan of $1 808 829 into the respondent's account to hold it in trust pending finalisation of negotiations. On November 9, 2017 applicant engaged respondent over exorbitant prices … The respondent ignored letters written by applicant to that effect," the founding affidavit read.

Yatakal Trading did not respond to the application.

Source - newsday