HomeLocalCourt orders RBZ to pay US$1,5m

Court orders RBZ to pay US$1,5m

THE High Court has ordered the Reserve Bank of Zimbabwe (RBZ) to pay Advanced Seed (Pvt) Ltd US$1,5 million for 3 000 tonnes of maize seed and 1 000 tonnes of sorghum seed supplied in 2006.


When the RBZ failed to pay the outstanding payment, Advanced Seed (Pvt) Ltd engaged Thembi Magwaliba of Magwaliba & Kwirira Legal Practitioners to recover the monies.High Court judge Justice Bere ordered the RBZ to pay Advanced Seed a total US$1, 5 million with costs.

“Judgment is hereby entered in favour of the plaintiff against the defendant for the sum of US$1 550 300 together with costs and interest on the sum of $1 035 000 (capital amount) at the rate of 15% per annum from the date of issue of summons to the date of full payment,” read the judgment.

Although the judgment was handed down in December last year, the central bank has not yet paid the South African firm.

But sources close to the developments told the Zimbabwe Independent that this could trigger a number of similar lawsuits in the near future as more disgruntled creditors seek legal recourse.

Documents show that the central bank in 2005 ordered 3 000 tonnes of maize seed and 1 000 tonnes of sorghum seed for an agreed price of US$725 a tonne for maize seed and US$750 a tonne for sorghum seed respectively.

Advanced Seed then agreed to the central bank’s terms to pay for the seeds in six equal instalments. Upon delivery on January 31 2006, the central bank promised to settle as per agreement but defaulted except for US$100 000 Advanced Seed received in July the following year. —— Staff Writer

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