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Panashe Machakaire Herald Reporter
THE Grain Marketing Board (GMB) is suing Reapers Private Limited owned by Agricultural and Rural Authority Development (ARDA) chairman Mr Basil Nyabadza for about $160 000 after the latter breached an agreement for the supply of groundnuts to a South African company.
GMB signed a memorandum of agreement with Reapers to jointly supply 1 000 tonnes of groundnuts to Casmara (Pvt) Ltd at a price of $900 per tonne.
The two partners were supposed to contribute 500 tonnes of groundnuts each, but Reapers only contributed 134,644 tonnes.
GMB supplied 534,591 tonnes bringing the total to 669,235 tonnes. The nuts were stored at Reapers’ depot in Rusape.
Reapers sold 349,440 tonnes to Casmara for $199 684 without GMB’s knowledge leaving a balance of 290,235 tonnes. As a result of the breach, the joint venture failed to meet the target of 1 000 tonnes of groundnuts.
GMB then cancelled the agreement and subsequently sued Reapers at the High Court claiming $159 747, which is 80 percent of the $199 684 plus delivery of the remaining 232,188 stored at the Rusape depot.
GMB also wants Reapers to be ordered to pay $232 188 into GMB’s FCA account if it fails to return the remaining groundnuts at its Rusape depot within 48 hours of the order being issued.
Reapers is yet to file its response at the High Court.
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