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Drilling firm sues ZMDC over $2,1 million debt

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AN earthmoving machinery supplier, Macasave Investments (Pvt) Ltd, has taken the Zimbabwe Mining Development Corporation (ZMDC) to court demanding payment of a $2,1 million debt for equipment supplied in 2012.

AN earthmoving machinery supplier, Macasave Investments (Pvt) Ltd, has taken the Zimbabwe Mining Development Corporation (ZMDC) to court demanding payment of a $2,1 million debt for equipment supplied in 2012.

BY CHARLES LAITON

Through its lawyers, Hove Legal Practice, Macasave Investments issued summons on July 11 this year for provisional sentence on liquid document after ZMDC allegedly acknowledged owing the company the claimed amount.

According to court papers, the debt emanated from $4 million worth of drilling equipment which Macasave allegedly supplied to ZMDC. The firm claims that ZMDC only paid $1,9 million, leaving a balance of $2,1 million.

“The plaintiff’s (Macasave) claim is for provisional sentence in an amount of $2 100 000. The plaintiff’s claim is based on an acknowledgement of debt executed by the defendant’s (ZMDC) general manager, Dr F Karonga, on February 14, 2017,” Macasave said

“In terms of the document, an amount of $2 100 00 is payable to the plaintiff, being the outstanding balance due in terms of an agreement of sale entered into between the parties for the drilling equipment that was supplied by the plaintiff to the defendant in December 2012 which amounted to $4 000 000.”

Macasave also said: “In terms of the acknowledgement of debt, the defendant only paid an amount of $1,9 million leaving an outstanding balance … which is long overdue. Defendant has neglected to pay the outstanding balance as per the agreement despite several undertakings to pay. Despite several demands and undertakings to pay, the defendant has failed, refused or neglected to pay the outstanding balance.

“Plaintiff has had no option, but to institute the present proceedings for the amount currently outstanding together with costs.”

ZMDC is yet to respond to the litigation.