Zupco in $500k fuel debt row

Source: Zupco in $500k fuel debt row | The Herald September 13, 2016

Fidelis Munyoro Chief Court Reporter
A local fuel company has approached the High Court seeking to recover over $500 000 from the ailing Zimbabwe United Passenger Company for a debt ceded to it by a transport firm.

ZX Fuels has been battling to recover $548 000 from Zupco.

This is despite the fact that the parastatal signed an acknowledgement of debt ceded to ZX Fuels by a fuel transport company – Shashe Logistics (Pvt Ltd.

Zupco signed the acknowledgement of debt on March 16 this year, according to the summons filed at the High Court.

ZX Fuels now wants an order for provisional sentencing of the parastatal.

The matter has been set for hearing tomorrow.

According to the summons, ZX Fuels claimed that Zupco signed a letter of acknowledgement of debt on March 16 this year.

In terms of the acknowledgement of debt documents, the money would be repaid by way of weekly instalments of an agreed amount. However, Zupco defaulted on the weekly payments.

“Defendant has, despite demands for payment, failed to pay the balance owing and therefore the sum of $548 000 is still owing in terms of the said outstanding debt,” reads part of the claim.

In terms of a resolution dated April 28, Shashe Logistics agreed to cede all its debts to ZX Fuels for any and all amounts owing by it to the fuel company.

Shashe Logistics caused a notarial cession of books debts to be registered in favour of ZX Fuels last July.

It is on that basis that ZX Fuels now seeks recovery of the $548 000 from Zupco. But Zupco seeks to contest the application for provisional sentence.

Zupco finance director Mr Everisto Madangwa, who deposed an affidavit, denied that Zupco owed ZX Fuels any amount.

He said while he conceded that ZX Fuels sent a letter of demand to Zupco claiming the alleged $548 000, he disputed that the fuel company has a right to claim the money from the parastatal.