Zinara sued for $893 000

By Tendai Kamhungira

HARARE – The Zimbabwe National Roads Administration (Zinara) has been dragged to the High Court by a construction company, which is demanding $893 000, after a road rehabilitation agreement went wrong.

The court heard that the company Fremus Enterprises (Private) Limited (Fremus) entered into an agreement with Zinara for the rehabilitation of roads in Buhera, Gutu and Zaka Rural District Councils between 2011 and 2013.

“It was a term of the said agreement that plaintiff (Fremus) would be paid its remuneration by the defendant (Zinara) upon completion of the work and submission of its invoices relating to each particular project,” the court heard.

According to court papers, Fremus would not charge 15 percent Value Added Tax (Vat) in its claims because it was not yet registered for the same with the Zimbabwe Revenue Authority (Zimra).

“In early 2013, Zimra demanded 15 percent Vat from the plaintiff on all its claims notwithstanding the fact that plaintiff had not registered for Vat and had indeed not charged defendant such Vat.

“Zimra’s contention was that plaintiff had to collect such Vat from defendant and then pay it over to it or simply pay such Vat from its own coffers and then recover same from defendant,” reads part of the court summons.

“In May 2013, defendant undertook in writing to refund plaintiff the total Vat it would have paid to Zimra,” the court heard.

The company said that it suffered great financial prejudice, adding that despite repeated demands, Zinara had failed and neglected to pay the money. Zinara is still to respond to the summons. Daily News