ZITF, Zinara lock horns over breach of contract

The Zimbabwe International Trade Fair (ZITF) has taken the Zimbabwe National Roads Administration (Zinara) to court for allegedly breaching the terms of contract and prejudicing it of more than $24 000.

ZITF has filed summons at the Bulawayo High Court citing Zinara as the defendant.

In its declaration of the claim, ZITF said in May 2016 it entered into an agreement with Zinara to jointly organise and host the inaugural infrastructural development conference under certain terms and conditions.

In papers before the court, ZITF said Zinara failed to pay $24 715 after the two parties entered into an agreement to jointly host the inaugural infrastructural development conference that was held in July 2016.

“The parties agreed to jointly organise and promote the infrastructure conference and expo within Zimbabwe and the region,” said ZITF. “The parties would source sponsorship from both private and public enterprises for purposes of obtaining resources to successfully host the conference from July 20 to 22, 2016.

“Pursuant to the agreement, the parties organised, promoted and hosted the inaugural infrastructure conference and expo in July 2016. In that regard, a sum of $26 000 was paid directly to the plaintiff as income before any reconciliation and payments were done.

“Another sum of $28 700 was also paid into defendant’s account before any reconciliation and payment were done as aforesaid.”

ZITF said that after jointly hosting the conference, the parties were supposed to share the profits or losses incurred from the event equally.

“Defendant requested plaintiff to deposit the amount paid to plaintiff into defendant’s account to fulfil inter alia defendant’s audit requirements, but on the understanding that defendant would then pay all the suppliers for the said conference and subsequently share the net profit equally between the parties as agreed,” it said.

ZITF said based on the agreement and understanding, it paid $26 000 to Zinara, but in breach of the agreement, the latter failed to pay the suppliers and also failed to account for the funds or remit plaintiff’s share of the profits despite demand.

“Ultimately, plaintiff had to pay the suppliers for the conference from its funds and sought reimbursement from defendant as well as its share of the profit,” said ZITF. “The amount paid by plaintiff to the suppliers was a sum of $13 611 and plaintiff’s share of the profit was a sum of $11 104, making a total of $24 715 due to plaintiff.”

ZITF said despite its demand, Zinara has neglected or refused to pay the money.

It wants an order compelling Zinara to pay $24 715 in respect of an agreement between the parties to jointly organise and host the event.

ZITF also wants the money to be paid with interest at a prescribed rate calculated from March 13 2018 to the date of full payment.

Zinara has not yet responded to the summons. The Herald