Fidelity wins US$500 000 chemicals case

Source: The Herald – Breaking news.

Fidelis Munyoro, Chief Court Reporter

CHEMICAL supply firm, Curechem Overseas, has been directed to refund US$552 281 to Fidelity Gold Refinery following a dispute over a supply deal aimed at providing small-scale miners with gold-processing chemicals.

Fidelity had paid Curechem US$1 551 045 under the agreement, yet it only received chemicals valued at US$954 243.79, prompting the case to be taken to court.

The High Court, presided over by Justice Gladys Mhuri, ruled in favour of Fidelity, affirming the competence of Advocate Taona Nyamakura, the appointed arbitrator.

The court upheld the arbitrator’s findings, concluding that the award was based on factual evidence presented during the proceedings. Justice Mhuri emphasised that arbitral awards are binding and that courts are generally reluctant to interfere unless the award violates public policy.

In her ruling, the judge noted that Curechem failed to demonstrate that the arbitration outcome was contrary to public policy.

Consequently, the court endorsed the registration of the arbitral award dated May 28, 2024, ordering Curechem to pay Fidelity US$552 281.91.

Court documents revealed that the dispute originated from a one-year mining inputs supply agreement signed on January 5, 2020.

Under this agreement, Fidelity prepaid Curechem to procure and supply various chemicals essential for gold mining and processing.  Curechem received US$1 551 045 to facilitate the procurement, with the chemicals intended for small-scale miners.

Between January 6 and May 27, 2020, miners drew chemicals worth US$954 243.79, leaving US$596 801.21 worth of unused chemicals in Curechem’s possession. When the agreement expired on January 6, 2021, disagreements arose over the unused chemicals.

The matter was referred to arbitration, as stipulated in the contract, and Advocate Nyamakura ruled in Fidelity’s favour, compelling Curechem to pay the outstanding amount.

Curechem contested the award, claiming it had made payments to Fidelity in local currency, but Fidelity insisted on payment in US dollars.