HomeNewsTimba sued over $340k service agreement fees

Timba sued over $340k service agreement fees

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Former ReNaissance Financial Holdings group chief executive officer Patterson Timba has been dragged to the High Court by a local businessman Lovemore Mangezi, who is seeking to recover $340 000 from the former top banker.

BY CHARLES LAITON

Mangezi recently filed summons against Timba, whom he accused of reneging on the pair’s “service level agreement” which allegedly resulted in the top banker gaining full control of his mine, Glencain Mine, situated at Eiffel Flats in Kadoma.

In his declaration, Mangezi, who cited Tolrose Investments (Pvt) Ltd, Swimming Pool and Underwater Repair Company (Pvt) Ltd and Timba as respondents, said the former ReNaissance boss breached the parties’ agreement through which he was supposed to have earned $350 000 after providing advice and services to the top banker.

“On July 27, 2015, plaintiff [Mangezi] and first and second defendants [Tolrose and Underwater], duly represented by the third defendant [Timba], entered into a service level agreement in terms of which plaintiff was to generally provide first and second defendant with advice and services with respect to the reinstatement of control of Glencain Mine,” Mangezi said.

“The services specifically included: Procuring the return of Tolrose mining claims illegally transferred to Exlod Investment by ensuring the reversal of the Exlod transfer, ensuring the legal removal of Exlod Investment from Glencain Mine and ensuring unhindered access to and control of Glencain Mine.”

According to Mangezi, he agreed with Timba that for all his services and in the event of a successful discharge of his mandate, he was entitled to be paid a success fee of $350 000 through an initial instalment equivalent to the value of one kilogramme of gold.

Thereafter, Mangezi said the other subsequent instalments equivalent to the value of 1kg of gold, at the time of payment, were due and payable at the end of each month until the success fee had been paid in full.

“Plaintiff successfully discharged his mandate in terms of the service level agreement as confirmed in the addendum to the agreement signed on November 1, 2016, [but] first and second defendant purportedly terminated the agreement of July 27, 2015 and November 1, 2016 through a letter from their legal practitioners citing breach of contract,” he said.

“In breach of the terms of payment, first and second defendants failed to pay the plaintiff the
$5 000 as agreed and only made payments amounting to $10 000 in December 2016 and January 2017, leaving an outstanding balance of $340 000.”

In his response to the claim, Timba requested for further particulars demanding to know on what legal basis he had been joined to the legal suit.

Timba further said he was demanding a copy of the service level agreement, a copy of the addendum and information on who was the previous registered owner of the gold claim.

The matter is pending.

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