A LUSAKA resident has sued Chawe Investments Limited in the Lusaka High Court for allegedly refusing to pay him over K1 million due to him under the Financing Agreement.
The said company is alleged to have contracted to borrow monies from Fredrick Mulenga on a multiple loan basis to execute a work order it had been offered by Afcons Infrastructure Limited, under the Lusaka Decongestion Project.
Mulenga now wants an order for Chawe Investments Limited to pay the sum of K1,100,000 being the amount due to him under the Financing Agreement, and contractual interest at the rate of 25 percent per annum from the date amounts became due, to the date of payment.
He also wants damages for loss of the use of his money, costs and any other relief the court may deem fit.
In a statement of claim filed in the Lusaka High Court commercial registry, Mulenga stated that by a written agreement dated April 26, 2019, Chawe Investments Limited contracted to borrow certain monies from him on a multiple loan basis to execute a work order it had been offered by Afcons Infrastructure Limited on terms and conditions set out in the said Finance Agreement.
He explained that under the work order awarded to Chawa Investment Limited by Afcons Infrastructure Limited, the defendant was to execute works of drainage, footpath and kerb under the Lusaka Decongestion Project for the Lusaka district measuring 5 kilometers at a cost of US$387,626 which was broken down into portions of 700 metres reach.
“By the said financing agreement, the plaintiff supplied a loan of K250,000 to the defendant for each of the 700 metres of the portions of the works and the defendant undertook to solely apply the said amounts to the execution and completion of the works under the work order granted to it by Afcons Infrastructure Limited,” read the claim.
Mulenga stated that Chawe Investments Limited was to receive K900,000 from Afcons Infrastructure Limited upon successful completion of each portion of the 700 metres of the works under the work order.
“It was an express term of the financing agreement that upon receipt of the sum of K900,000, the defendant would take out a sum of K250,000 as new loan for the next phase of 700 meters of the works and retain a further K300,000 from its operational costs and from the balance of K350,000, the defendant would pay to the plaintiff 40 percent of the amount of K140,000 being interest or profits due to him under the agreement,” read the claim further.
Mulenga stated that Chawe Investments Limited had admitted having completed all the portions of the 700 meters of work under the work order for which a sum of K1,230,000 was due to him.
He however, stated that of the total amount due to him in the sum of K1,230,000, Chawe Investments Limited has only paid the sum of K130,000 leaving the sum of K1,100,000 due and owing to him to date.
Mulenga stated that Chawe Investments Limited had been reminded to make good the amount due to him under the financing agreement but it has refused or neglected to do so much to his own prejudice.
He stated that as a result of the defendant’s conduct, he had suffered loss and damage.