ZPC sued for disrupting business

By Staff reporter | 28 Sep 2019 at 08:26hrs
THE Zimbabwe Power Company (ZPC) has been sued for Z$2,6 million for disrupting electricity connections at a Mazowe farm, resulting in losses.

Kukohwa Kurima (Pvt) Ltd (Kukohwa Kurima) has cited ZPC in summons filed in the High Court and demanded payment of Z$860 000 as compensation for loss of income arising from disruption of farming activities due to power cuts between 2015 to date.

Kukohwa Kurima wants a further Z$2 193 000 in potential rentals lost, Z$193 500 for replacing a 100 KVA transformer and interest at the prescribed rate.

Sometime in October 2004, Kukohwa Kurima purchased a 100KVA transformer from ZPC and was quoted Z$10 959 376 which was paid using a loan acquired from Agribank.
The court heard that ZPC supplied and installed the transformer in November 2004 and Kukohwa Kurima enjoyed the use of electricity from 2004 to 2015.

However, in March 2015 ZPC employees removed the transformer without Kukohwa Kurima's consent, saying it would be returned within weeks. The claimed they wanted to help another tobacco farmer who was in distress.

"The plaintiff has not been able to utilise the farm for its projects. During the full functioning of the farm the plaintiff would realise US$25 000 in profits from the production of broiler chickens, sugar beans and paprika," reads summons.

"Further the plaintiff engaged a tenant at the farm in 2013 called Double Designs Foods Limited for a 10-year lease agreement at the rate of US$5 000 a month."

The court heard that the tenant prematurely terminated the lease in 2015 because the ZPC had taken away the transformer.

According to the summons, Kukohwa Kurima could have realised US$255 000 had it not been for the disruption to its activities, which is equivalent to Z$2 193 000 at the current interbank rate.



WhatsApp Newsletter

Follow us

Latest Headlines