ZMDC takes engineering firm to cleaners

Daniel Nemukuyu Senior Reporter
The Zimbabwe Mining Development Corporation has won a US$576 889,89 lawsuit against a local engineering firm that failed to supply and install mining equipment at the corporation’s mine sites, despite receiving full payment.Chaferfly Enterprises Private Limited of Bulawayo entered into agreements with ZMDC for the supply of several mining equipment and installation thereof, but breached the agreement. The company received the money, but failed to play its part in terms of the two agreements.

Justice Priscila Chigumba granted a default judgement in favour of ZMDC and ordered Chaferfly to pay up the debt with costs.
“It is ordered that judgement be and is hereby entered for the plaintiff against the defendant for: “payment of US$284 050 together with interest at the prescribed rate from the 6th of January 2012 to date of full payment; “payment of US$292 839,89 together with interest at the prescribed rate from April 27 2012 to date of payment,” read the court order.

Harare lawyer Mr Raymond Nembo of Sawyer and Mkushi law firm represented ZMDC.

Neither Chaferfly nor its lawyers attended the proceedings.

On January 6 and April 27 last year, ZMDC and Chaferfly entered into agreements in which Chaferfly would supply mining equipment namely Gyrosphere Crusher, C/W Oil Lube and a motor for installation at a mine.

Chaferfly charged US$284 050 for the supply of the Gyrosphere Crusher, which ZMDC fully paid for on January 6 2013. According to the agreement, Chaferfly was expected to deliver the equipment within eight weeks from the date of payment, but that was not fulfilled. In terms of the quotation, ZMDC was charged US$292 839 for the crushing plant upgrading.

As part of the crushing plant upgrading, Chaferfly was supposed to fabricate and supply conveyor belts and walk aways, a single deck screen complete with a drive motor and others.

ZMDC paid the US$292 839,89, but Chaferfly did not provide the service within the 14 days stipulated in the agreement. Efforts by ZMDC to get the work done failed prompting the mining company to issue summons at the High Court in June this year.

Chaferfly failed to respond to the claim despite being served, a development that resulted in ZMDC filing an application for default judgement.