AVIC International has been sued by a subcontractor for unlawfully deducting US$8,598.22 from the contract price.
In a statement of claim filed in the Lusaka High Court, Kaungu General Dealers Limited stated that AVIC International subcontracted it to carry out road construction and maintenance works along Chilimbulu Road and Ibex Hill in Lusaka at a cost of US$ 12,180.56 which contract was verbally agreed upon by both parties.
But AVIC allegedly breached the contract by only paying the subcontractor K 22,039.00 on grounds that the deductions were done in order for AVIC to recover the cost of flags and sign boards that had been left on the sites.
Kaungu General Dealers averred that at no time did it offer to purchase the said sign boards and the parties did not discuss the prospects of using AVIC’s sign boards and flags.
The company stated that in any event the defendants prices were shockingly exaggerated and were fixed unilaterally.
Kaungu General Dealers is now claiming damages for breach of contract.