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Drax challenges termination of contract


LAWYERS representing Drax Consult SAGL, a company involved in a $60 million tender scam, fronted by Delish Nguwaya have threatened to sue National Pharmaceuticals (NatPharm) for unprocedurally terminating their client’s contract.


In a letter dated July 13, 2020, Nguwaya’s lawyers Samukange Hungwe Attorneys argued that the purported cancellation of their client’s contract was invalid and the statutes quoted by NatPharm to justify the move were non-existent.

“Our client concluded a contract for the supply and delivery of medicine and medical sundries with yourselves on December 11, 2019. Our client performed all its obligations in terms of the law. Our client learnt with shock that you purported to cancel the contract for alleged public interest on June 11, 2020. Our instructions are to indicate that your purported cancellation of the 11th of June 2020 signed by one Mrs FN Sifeku is null and void for the following reasons,” the letter read.

“The purported cancellation appears founded on a directive from the Ministry of Health and Child Care which clearly is outside the contractual parameters that govern the parties’ relationship. The purported termination is allegedly in terms of section 89(b) of the Public Procurement and Disposal of Public Acts Act Chapter 22:23. This act does not exist.”

The lawyers said the purported termination was erroneous and not supported at law, adding that the company did not breach its contract.

“Against the above background and in line with the general conditions of contract and the contract between the parties, our client hereby gives notice of its intention to commence arbitration under the London Court of International Arbitration Rules (LCIA),” read the letter.

“This route is being pursued on the basis that the purported cancellation is not only unlawful but was capriciously and unprocedurally done.”

Nguwaya was arrested over the US$60 million drugs procurement scandal and after weeks in remand prison, he was freed on $50 000 bail by the High Court.

He is being accused of misrepresenting facts to the government in order to win a drug procurement tender.

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