The Zimbabwe Farmers Development Company (ZFDC) (Pvt) Ltd has taken former Justice, Legal and Parliamentary Affairs deputy minister Fortune Chasi to the High Court demanding payment of $1 251 484,38, for farming equipment he bought on credit eight years ago.
BY CHARLES LAITON
ZFDC issued the summons on September 19 this year and the Mazowe South legislator filed his appearance to defend on September 29.
In its declaration, ZFDC said on October 14, 2009, it sold two YTO 1004 tractors, one 30-tonne truck, one 10-tonne truck, one trailer, one disk harrow, one Tyne ripper and two combine harvesters to Chasi after entering into an agreement for the farming equipment.
The firm said in terms of the agreement, the total selling price for all the machinery and equipment was
$980 571,50, of which Chasi was supposed to have paid $62 849 as deposit by not later that September 30, 2009 and further that the deposit was to be settled by the sale of Chasi’s two motor vehicles to ZFDC for $170 000.
“The defendant (Chasi) duly sold his two motor vehicles to the plaintiff (ZFDC) for the sum of $170 000. The defendant did not pay any instalment to the plaintiff. In order not to prejudice the defendant, the total sum of $170 000 for the motor vehicles sold to the plaintiff by defendant was used as deposit so as to offset part of the debt,” ZFDC said.
The farmers’ company further said it was part of the agreement that the compound interest of 5% per annum would be charged on the capital amount and that a penalty fee equivalent to 5% would be charged on instalments that were in arrears.
ZFDC also said the parties agreed that its standard administration charges would be subject to change from time to time and that it acknowledged being indebted to Chasi in the sum of $170 000 less the deposit.
The firm further said it was agreed between the parties that the ownership of the machinery and equipment would remain with ZFDC until the purchase price was fully paid, and Chasi undertook to pay costs at attorney and client scale and collection commission if the matter was to end up in court.
“The total amount credited to the defendant’s account by plaintiff is the sum of $214 764. Despite demand on several occasions, defendant has refused or neglected or omitted to pay $1 251 484, 38,” ZFDC said.