Lupepe in US$450 000 debt

business mogul Mr Delma Lupepe from its premises for failing to pay rentals and operational costs to the tune of US$450 000.
Zimbabwe Express Services Limited and Merspin Limited are being accused of failing to meet their obligations, a development that prompted the property owners to seek recourse from the High Court.
Old Mutual filed two separate applications at the High Court and that involving Merspin has been set for June 24 before Justice Anne Mary Gowora.
According to the court application, Old Mutual contends that it entered an agreement to lease stand numbers 13772 and 3618 in the Bulawayo light industrial sites to Merspin Limited in 2002.
At the time, Merspin was under the control of a judicial manager, Mr Cecil Madondo.
According to the said agreement, Merspin was to pay Z$319 140 monthly for the properties together with operational costs.
When the multi-currency system came into play, it is claimed the parties agreed on new monthly rentals.
Between January and June 2009, Merspin was supposed to pay US$10 000 per month.
From July to September the same year the monthly rentals rose to US$16 249.
The rentals were further reviewed to US$21 122 monthly from October 2009 to December 31 2010.
According to the court papers, Merspin only paid US$1 737 for rentals between January 2009 to August 2010 and US$9 760 as operational costs.
The company left a balance of US$427 520,45 in rental arrears and US$12 267,24 in operational costs.
It is argued that Merspin made several empty promises before Old Mutual took the matter to court.
The agreement was cancelled thereafter and Old Mutual is now seeking an order confirming the cancellation and another one compelling Merspin to pay up the outstanding money with interest.
Merspin has filed a notice of opposition denying the allegations.
According to Merspin, no agreement was signed after the dollarisation of the economy in 2009.
“There has not been an agreement on the rentals between the parties for the period extending from July 2009 to December 2010. There is no written lease agreement. The applicant made proposals regarding the rentals and the respondent has made counter-proposals.
“While respondent agreed to pay operating costs, the applicant and the respondent have not agreed upon the quantum of the costs,” read part of the opposing affidavit.
Old Mutual is claiming US$5 436,76 for rentals and US$2 934,17 for operating costs for the offices the company was occupying at Old Mutual Centre in Bulawayo.
Meanwhile, Old Mutual is seeking to evict another company linked to Mr Lupepe, Gloweave Limited – a yarn-producing firm – from Old Mutual Centre in Bulawayo over rental and operational costs arrears in excess of US$200 000.