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CAAZ sues Mbada Diamonds over $1m rental arrears

News
The Civil Aviation Authority of Zimbabwe (CAAZ) has taken Mbada Diamonds and its directors to court over rental arrears amounting to $1 078 314.

The Civil Aviation Authority of Zimbabwe (CAAZ) has taken Mbada Diamonds and its directors to court over rental arrears amounting to $1 078 314.

BY CHARLES LAITON

CAAZ is also seeking the eviction of the diamond miner from its old domestic terminal building at Harare International Airport. In summons issued on November 2 this year, CAAZ cited Condurango Investments (Pvt) Ltd t/a Mbada Diamonds as respondent in the matter and the latter is yet to enter an appearance to defend.

“The plaintiff (CAAZ) claims against the defendants (Mbada), jointly and severally the one paying the other to be absolved, for payment of the sum of

$1 078 314,78, an order for the cancellation of the lease agreement between the parties and an order for ejectment of the first defendant and anyone claiming occupation through it from Old Domestic Terminal (ODT) Hangar Harare International Airport, Harare,” CAAZ said.

In the application, CAAZ also cited Mbada directors Robert Mhlanga and David Kassel as co-defendants.

CAAZ claimed that on September 2, 2009, it entered into a lease agreement with Condurango Investments and in terms of the said agreement Mbada Diamonds leased ODT Hanger for $7 000 per month.

CAAZ further said as part of the agreement, it was further agreed that the rentals would be paid monthly in advance, free of exchange and bank charges, and without deduction whatsoever on or before the first day of every month.

“In addition to the above, on September 2, 2009, the second and third defendants (Mhlanga and Kassel) duly signed a deed of suretyship binding them as co-principal debtors to the plaintiff for the due and faithful performance of the first defendants in terms of the lease agreement,” CAAZ said.

“In terms of the deed of suretyship, the second and third defendants renounced all benefits and bound themselves jointly and severally as surety and co-principal debtors. As per the terms of the agreement, the rent was reviewed to $25 300 inclusive of 15% value-added tax with the concurrence of both parties in January 2012.”

In compliance with the agreement, CAAZ said it then gave Mbada Diamonds vacant possession of ODT Hangar at Harare International Airport and the company took occupation of the property and has been enjoying possession and use of the same since 2009.

“However, in breach of the agreement and despite numerous undertakings to settle the accrued rentals, the defendants failed, neglected and/or refused to pay rentals and accrued rentals timeously and to that end owes the plaintiff the sum of $1 078 314,78.”