By Agencies
A top diamond mining company RZM Murowa will soon part with US$452,218,62 after it was ordered to pay the amount to a local company, Introwise Catering (Pvt) LTD for for services it was offered in terms of a contract they entered into in 2015.
The catering company demanded its payment in USD with a contention that this was according to their contract.
The statement of agreed facts is that the plaintiff was hired to provide catering services at the defendant`s mine and Harare sites.
This agreement, reduced to a written memorandum dated 1 March 2015, ran on 12-month terms.
The last cycle was represented by Addendum Number 6 to the main contract.
Essentially, the contract required the plaintiff to procure at its own cost, the necessary provisions.
These included beverages served variously but especially at the bars or functions The costs under this head are those referred to in the email quoted above.
Clause 1.1 of the contract provided for payment to Intorwise on a management fee of US$10,000 per month.
Clause 1.2 allowed Introwise to submit rates for its personnel as well as the actual cost of food items procured at a markup of 8%.
It is common cause that these items were presented in schedules and invoices boldly marked “USD Invoice” or “This is a USD Invoice.
Despite the procurement of these items, especially food in ZWL, the plaintiff was compensated in USD.
Murowa terminated the contract by written notice on 8 August 2023.
Introwise`s final bill was rejected by Murowa leading to the institution of these proceedings.
Introwise based its claim on the factors that firstly, the contract stipulated that the defendant would settle its obligations in USD.
Secondly, Introwise’s position is that consistent with provision, Murowa always met the invoices presented in USD.
Introwise also claimed that the mining company was under a legal obligation to perform in forma specifica.
The company also rejected Murowa’s tender by insufficient as valid performance.
Murowa was refusing to pay the amount arguing that the regulatory environment governing the monetary regime had vastly altered since 2019.
Its lawyer Advocate Taona Nyamakura said, “The law after February 2019, determines payment of debts based on them being either local or foreign obligations.”
After hearing submissions from both parties Justice Joseph Chilimbe sitting at the Harare High Court ordered RZM Murowa to pay US$452,218 to the catering company.
“The resultant questions over legal rights and commercial priorities require a sober-minded if not patient approach to address.
“I find neither mischief nor frivolity in either side`s case. And with each side having been met with partial success, I find it just and equitable that each party bears its own costs.
“Accordingly, it is ordered as follows; -that defendant be and is ordered to pay plaintiff the sum of US$452,218,62 plus interest thereon at the prescribed rate from 25 August 2023 to the date of payment in full, with an option to pay the amount in question in local currency at the applicable official rate ruling on the date of payment,” Chilimbe ruled.
