ZUPCO SUED OVER $729K FUEL DEBT

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Zimbabwe United Passenger Company (Zupco) is being sued at the High Court for allegedly failing to pay a $729 393 fuel debt

The transport utility drew substantial amounts of diesel for its fleet from Shashe Logistics’ reservoirs over the past few years, but failed to pay the debt in violation of an agreement between the parties.

Shashe Logistics, through its lawyers Matizanadzo and Warhurst Legal Practitioners, filed summons at the court last week claiming the principal debt with interest calculated at the prescribed rate of 5 percent per annum.

Interest, according to the draft order, should be calculated from the date of issuance of summons to the date of payment in full. Shashe Logistics supplied fuel to Zupco’s northern and southern divisions during a long period of time.

 

zupco

In March last year, the bus company admitted its indebtedness to Shashe in the sum of $548 000 and undertook to settle the balance through weekly instalments of $1 500.

“Notwithstanding such undertaking, the defendant has since March 2016 only made part-payments of $11 123 in clear breach of its undertaking to settle the outstanding debt,” reads the declaration.

After the acknowledgement of debt in March last year, Zupco continued drawing diesel from Shashe reservoirs up to May this year on credit.

The debt now stands at $729 343,45, the declaration reads. “Not withstanding demand, the defendant has failed and or refused to settle the debt properly due and owing to the plaintiff and is accordingly liable, to the plaintiff for the balance of the debt in the sum of $729 343,45 together with interest at the prescribed rate and costs of suit,” reads the declaration.

The bus company is yet to respond to the summons.

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