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Govt sues City of Harare over $103k debt

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THE government’s printing company, Fidelity Printers and Refiners (Pvt) Ltd, has taken the City of Harare to court demanding payment of $103 266 for printing services rendered to the council three years ago.

THE government’s printing company, Fidelity Printers and Refiners (Pvt) Ltd, has taken the City of Harare to court demanding payment of $103 266 for printing services rendered to the council three years ago.

BY CHARLES LAITON

The printing firm issued summons against the City of Harare yesterday and the council is yet to enter an appearance to defend.

According to court papers, sometime in 2014, Fidelity Printers and Refiners entered into a longstanding agreement with the City of Harare in terms of which the firm would render printing services to council on a credit basis.

The material terms of the agreement were that the City of Harare would open an account with the printing firm which they would regularly service by making payments towards outstanding invoices for printing materials it would have procured on credit.

“It was a term of the agreement that defendant [City of Harare] would settle the account within 30 days of any amount becoming due. Upon termination of the agreement, the defendant would make payment in full of any amount owed to plaintiff [Fidelity Printers],” the firm said in its declaration.

“Plaintiff performed its obligations by rendering printing services to defendant in the period between February 2012 and July 2017, which plaintiff duly invoiced the defendant for.”

The printing firm said the City of Harare, at some point, regularly made payments into the firm’s account to settle debts due, however, it did not make full payment of the monies due, prompting the firm to approach the court for recourse.

“In breach of the agreement, defendant failed to pay for the printing services rendered to them by plaintiff until such debt accumulated to a total of $103 266,75 between 2012 and 2017,” Fidelity Printers said, adding in July this year, as a result of the breach of the contract, the contractual relationship between the printing firm and the council was terminated.