THE Hwange Local Board is engaged in a protracted legal battle with a Bulawayo-based construction company after the local authority cancelled a deal to service 475 residential stands. RICHARD MUPONDE SENIOR REPORTER
The local authority is now demanding $300 000 it had already paid to Nicholas Masuku’s company after the lad developer failed to service the stands.
Council approached the Bulawayo High Court seeking to force Masuku’s N and S Properties to return $340 197 it was paid to service the stands in the coal mining town.
The local board is seeking an order cancelling the agreement and for N and S Properties to restitute the money paid for the undone job.
“Wherefore the plaintiff (Hwange Local Board) claims, the cancellation of the agreement of service entered between the plaintiff and defendant (N and S Properties) on or around 15 September 2009.
Restitution of the sum of $340 197 by the defendant due to the breach of agreement. Costs of suit on legal practitioner and client scale,” the local board submitted.
The local board said on September 15 2009, it went into an agreement with Masuku’s company to service stands, but the company failed to do so after being paid.
“It was a term of the agreement that the project would be completed by the 31st August 2010. The total agreed cost of the project was $451 000 which payment was agreed would be for surveying and pegging, bush clearance, road formation, trenching, piping of sewer, water, manholes and culverts, valve boxes sluice valves and water reticulation drawings. In pursuance to the agreement the plaintiff paid the defendant the sum of $340 197.
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“In breach of the agreement, the defendant has failed, refused or neglected to complete the servicing of the residential stands. To date the defendant has only done 10% of the total work agreed on. The defendant in breach of agreement did not do the job to the standard agreed between the parties necessitating re-doing the whole project.”
N and S Properties has opposed the local board’s application through Masuku and the matter is yet to be heard in the higher court.
Advocate SKM Sibanda and Partners represents the construction company while Dube, Tachiona and Tsvangirai Legal Practitioners represent the local board.
