FRA sues Shared Resources Zambia Limited over US$110,850

FRA sues Shared Resources Zambia Limited over US$110,850

THE Food Reserve Agency (FRA) has taken Shared Resources Zambia Limited and William Tamba to the Lusaka High Court seeking an order compelling the company to pay more than US$110,850 for purchase of 851.71 metric tonnes of white maize.

In its statement of claim, the Food Reserve Agency said it was established for the purposes of administering the national strategic food reserves of the Republic of Zambia inter alia by way of purchasing, import and trade in designated agriculture commodities.

The FRA stated that by contracts in writing respectively dated August 8, 2018 and November 28, 2018, the defendants agreed to buy 6.306 metric tonnes of grade “a” Zambian white maize from the agency at a price of US$130 per

metric tonne.

“It was an express term of the contract that the defendant would pay and collect the entire quantity contracted to be sold in lots of 2,000 metric tonnes every 14 days with the first payment falling due 14 days,” read the statement.

“Shared Resources Zambia Limited and Mr Tamba, in the course of executing the contracts, paid FRA for maize worth US$181,927.79, altogether totaling 1399.44 metric tonnes but proceeded to collect maize totaling 2,252.15 metric tonnes valued at US$292,780.00, which was an over collection by 851.71 metric tones valued at US$110, 852.21.”

FRA said by reason of the above facts and matters, it was claiming US$110,852.21 as the money it had not received.

It said in the alternative, by reason of the aforesaid facts and matters, Shared Resources Zambia Limited and Mr Tamba wrongly deprived the Food Reserve Agency of the use and preservation of the said 851.71 metric tonnes over collected maize and have converted the same in their own use. FRA wants the court to order the defendants to pay it US$110,852.21 or alternatively, damages for concession, interest at the prevailing commercial bank lending rates and any other relief the court may deem fit.

Source: THE MAST