Parastatal drags govt ministries to court

Parastatal drags govt ministries to court

Source: Parastatal drags govt ministries to court | Daily News

HARARE – A Central Mechanical Engineering Department (CMED)-owned transport firm, Easy Go, has dragged several government ministries to court after they failed to pay various amounts of money for cars they hired from the firm.

The latest ministries to be dragged before the High Court are Home Affairs and Local Government, which are under the control of Ignatius Chombo and Saviour Kasukuwere respectively.

Both ministers are cited as respondents in their official capacities in the two separate applications, where Easy Go is demanding $75 057, 50 from Home Affairs and $108 109, 20 from the Local Government.

The same company recently filed another lawsuit against Public Service minister Prisca Mupfumira in her official capacity after her ministry failed to pay  $132 000 for motor vehicles hired from the company.

According to court papers, Easy Go entered into an agreement with the Home Affairs ministry in 2015 and 2016. In terms of the agreement, Easy Go hired out motor vehicles to Home Affairs.

“Plaintiff (Easy Go) fulfilled its obligations in terms of the agreement by providing the car hire services to the defendant (Home Affairs). Defendant breached the agreement by failing to pay for the services rendered in the sum of $75 057, 50…

“Defendant has refused, failed and or neglected to pay the whole amount despite demand. Defendant has no right at law to refuse to pay the whole amount,” the court heard.

During the 2015 period, the court heard that Easy Go also entered into another car hire agreement with the Local Government ministry.

“Defendant (Local Government) breached the agreement by paying $20 000 only, leaving a balance in the sum of $108 109, 20…

“Sometime in March 2016, plaintiff through its lawyers of record wrote a letter of demand to the defendant which was never complied with. Defendant has no right at law to refuse to pay the whole amount,” the court heard.

The company is demanding the outstanding amount from the two ministries, interest and collection commission.

Easy Go has since gone back to the High Court seeking a default judgment after the ministries failed to respond to the summons.

The matters have been set down for hearing today before the high Court.

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