The High Court has dismissed a US$432 485 claim filed by Earthwales (Pvt) Ltd against Craft Properties (Pvt) Ltd, bringing to an end a protracted dispute over a failed road construction contract in Kadoma.
Earthwales had sued the Kadoma-based land developer, alleging it was owed payment for road works allegedly undertaken at Holyland high density suburb.
The two companies entered into a memorandum of agreement (MOA) on August 2, 2022 under which Earthwales was contracted to service roads at the housing project.
The scope of work included clearing and forming 199 105 square metres of road, removing unsuitable material, compacting the subgrade and laying two 150mm base layers.
Under the agreement, payment was not to be made in cash but through the transfer of high-density residential stands within the development.
However, the MOA stipulated that the stands would only be transferred after the works had been measured and certified by the project engineer, Calisto Mutswiri, and inspected and approved by the Kadoma Municipality’s engineering department.
Craft Properties argued that this certification was a precondition to any transfer of stands.
The developer maintains that Earthwales failed to fully mobilise the required equipment for the project.
- Professionalism, honesty drive Craft Properties
- Professionalism, honesty drive Craft Properties
- Craft Properties boss for global award
- Craft Properties boss for global award
Keep Reading
Court documents indicate that although Earthwales hired a grader and dozer from SMGC Mining in August 2022, the equipment was later withdrawn after alleged non-payment.
The situation was further complicated when Earthwales’ appointed principal engineer, Vambai Shenjere, was convicted in August 2022 on three counts of fraud involving the sale of residential stands belonging to Gutu Rural District Council.
He was sentenced to 36 months’ imprisonment by the Gutu magistrates’ court.
Craft Properties argued that Shenjere’s incarceration placed Earthwales in breach of contractual clauses requiring the contractor to maintain a designated principal officer for the duration of the project.
Kudakwashe Taruberekera, founder and chief executive officer of Craft Properties, said the company terminated the agreement on September 30, 2022.
“We had no option, but to cancel the contract after they failed to meet their obligations,” he said.
“The equipment they had hired was demobilised due to non-payment, and there was no certified work to justify any transfer of stands.”
The dismissal brings to an end a nearly four-year dispute between the two companies, clearing the way for Craft Properties to proceed with servicing works at the Holyland high density suburb project.
