The National Oil Infrastructure Company of Zimbabwe (Pvt) Ltd (NOIC) has approached the High Court seeking to compel Billy Rautenbach’s Green Fuel ethanol plant to pay over $1 million storage and handling fees for a three-year period.
BY CHARLES LAITON
In a matter filed on September 14 this year, the parastatal claimed Rautenbach’s firm had reneged on an integrated storage and handling agreement entered between the parties for which it was now claiming $1 072 335,28 together with interest and the cost of the suit.
Green Fuel has since entered an appearance to defend notice and is geared to challenge the claim when it is set down for hearing.
In its declaration, NOIC said the terms of the agreement between itself and Green Fuel were that it would store ethanol at its Msasa terminal.
NOIC further said it was agreed it would store, handle and deliver the ethanol into Green Fuel’s “nominated road vehicles or rail tankers as determined and instructed” by the owners of the commodity.
“In terms of clause 6.1 of the agreement, the defendant (Green Fuel) would pay the plaintiff (NOIC) a storage and handling fee of $15 per cubic metre of ethanol dispatched or redelivered from the terminal,” NOIC said in its declaration.
“In terms of clause 7.1, as read with 7.2 and 7.3 of the agreement, the plaintiff would then invoice the storage and handling fees inclusive of any applicable VAT to the defendant as soon as the ethanol was delivered and the defendant was to settle the invoice within seven days from the date of receipt of the invoice.”
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NOIC further said between 2013 and May this year, it had complied with its obligations in terms of the agreement and had provided Green Fuel with services for which payment was now overdue.
“In breach of the terms of the agreement, defendant has failed to meet its payment obligations, and the storage handling fees totalling $1 072 335,28 as at May 31, 2016, remain due, outstanding and payable to the plaintiff,” NOIC said.
“The plaintiff has demanded payment from the defendant of the outstanding storage and handling fees. Despite such demand, the defendant has failed and neglected to make payment of the demanded amount.”
The matter is still pending.
