SA firm sues Gono over $2,2m

via SA firm sues Gono over $2,2m | The Herald March 12, 2015

Former Reserve Bank of Zimbabwe Governor Dr Gideon Gono has been sued over a $2,2 million debt at the High Court arising from his company Lunar Chickens barely two weeks after Oasis Motors approached the same court over a $1,5 million debt.

This brings the lawsuits facing Dr Gono at the High Court over his failure to pay debts to $3,7 million.

In the latest case, a South African company, ASP Marketing CC, alleged that Dr Gono, who is the director of Lunar Chickens, entered into various agreements for the supply of tonnes of maize and soya beans that would be used to produce feed for the poultry business.

Lunar Chickens did not pay for the delivery, resulting in ASP Marketing approaching the High Court for an order compelling the poultry firm to settle the debt.

A fortnight ago, Dr Gono made headlines over failure to pay a $1,5 million debt to Oasis Motors for vehicles he purchased for Lunar Chickens staff in 2010.

ASP director Ms Alida Aletta Craukamp deposed a founding affidavit chronicling how Dr Gono entered into the agreements for maize and soya beans deliveries and ended up failing to pay.

Ms Craukamp said her company was in the business of purchasing and selling agricultural products like maize, soya beans and maize bags.

Dr Gono, according to Ms Craukamp, met ASP officials at his New Donnington Farm in Norton and they sealed a deal for the supply of maize to Lunar Chickens at the price of $395 per metric tonne.

Each delivery, according to the agreement, would be separately invoiced and payment would be done by telegraphic transfer within 60 days from the date of presentation of the invoice.

Between December 2009 and May 2010, ASP delivered to Dr Gono 2 209,72mt of white maize at the agreed price.

Lunar Chickens also signed another agreement in which it received 2 966,07mt of soya beans at the price of $495 per mt between June and July 2010 from ASP.

Several other consignments of grain were delivered to Lunar Chickens, but Dr Gono failed to comply with the payment agreements, resulting in the matter spilling into the courts.

In respect of maize deliveries, ASP issued and presented its invoices to Lunar Chickens, but payment was not done within the stipulated 60-day period. For soya beans deliveries, the deadline for payment was end of August 2010.

ASP officials met Dr Gono in South Africa in 2011 and he undertook to pay the debt with interest.

In the same year, Dr Gono acknowledged the debt and paid $140 000, leaving a balance of more than $2,2 million.

Despite demand, Dr Gono has refused or failed to pay the debt, it is alleged.

Responding to the application, Lunar Chickens chief executive officer Mr Velenjani Lupankwa argued that ASP had adopted the wrong route in claiming the debt.

He submitted that Clause 14 of the parties’ agreement stated that disputes of breach of contract should be referred for arbitration in South Africa and not the local High Court.

Mr Lupankwa argued that the agreement relied upon was an illegal one as it infringed Section 11 of the Exchange Control regulations of 1996.

The company argued that no exchange control authority had been obtained to allow Lunar Chickens to send monies outside the country and that the High Court cannot be asked to sanction an illegality.

Lunar Chickens argued that ASP being a foreign company, failed to pay security of costs rendering the application fatal.

Lunar Chickens also argued that ASP sued the wrong party as it dealt with New Donnington Farm (Pvt) Ltd and RT Feeds in the agreements.

It was also stated in the opposing papers that the three-year period stipulated under the Prescription Act as the period in which a claim may be made had since lapsed and that the claim must be dismissed.

Litigation, according to Lunar Chickens, ought to have been instituted at least by July 25, 2013.

Lunar Chickens also argued that the maize and soya beans were imported without paying customs duty.

Dr Gono, according to Lunar Chickens, had no authority to act on behalf of the company when he dealt with ASP, hence the company that was sued had nothing to do with the case.

Lunar Chickens denied ever dealing with ASP, urging the court to dismiss the application with costs.

COMMENTS

WORDPRESS: 9
  • comment-avatar
    Donato MATIBILI 9 years ago

    Gono mari dzedu dzamaitibira neburning dzakapera ka? wava patight. we dont feel for you. you really made life hell in Zimbabwe iwe naMatibili.

  • comment-avatar
    Grabmore 9 years ago

    Lunar Chickens also argued that the maize and soya beans were imported without paying customs duty.

    How did this occur? And is this the same customs duty that was introduced to “protect the local industry?’

    Poor ASP director Ms Alida Aletta Craukamp! She does not realise that non payment was planned long before she even delivered to the first load.

    • comment-avatar
      Kevin 9 years ago

      Ms Craukamp is a complete idiot! I could have told her not ship until payment was received. If Gideon Gono came to South Africa and acted on behalf of his company she should lay fraud charges against him in South Africa. He entered into a contract that he believed, and aas Govenor of the Reserve bank of Zimbabwe he knew the agreement to be unlawful and used it cause her to sell goods to him knowing that he was unable to pay.

  • comment-avatar
    Petal 9 years ago

    What insanity from people who are having loads of money that has been looted and do not even want to pay for anything

  • comment-avatar
    Mpisi 9 years ago

    The Ex governor should have known that a company cannot contract to pay, and cannot pay, externally without Exchange Control approval. Was this a deliberate ploy? Perhaps the aggrieved party should brief Counsel in SA to look at criminal liability in this matter.

  • comment-avatar
    Only Fools 9 years ago

    Why didn’t Gono buy maize and soya beans from Zimbabwe? Oh I forgot no farmers.

    • comment-avatar
      Godfrey 9 years ago

      This is the clearest indindaction that thie Luna chicken empire was built on the RBZ debt incuured during Gono’s tunure. So much money was given out without any accounting, was it deliberate to cover up for the money he himself took to finance this project. I guess so, its logical. Now that he off the helm, we now learn that the business is failing to pay its debt. Was this business ever a going concern, I doubt very much, it was built on stolen money and I can I assure you it is going to go down like a tonne of bricks. This is just the begining. Same as the empire in Mazoe, wait till the old man bite the dust?

  • comment-avatar
    Godfrey C 9 years ago

    This is the clearest indindaction that thie Luna chicken empire was built on the RBZ debt incuured during Gono’s tunure. So much money was given out without any accounting, was it deliberate to cover up for the money he himself took to finance this project. I guess so, its logical. Now that he off the helm, we now learn that the business is failing to pay its debt. Was this business ever a going concern, I doubt very much, it was built on stolen money and I can I assure you it is going to go down like a tonne of bricks. This is just the begining. Same as the empire in Mazoe, wait till the old man bite the dust?

  • comment-avatar
    Mlimo 9 years ago

    Hey doesn’t anyone listen or read? Doesn’t this company have access to the Internet. Gono ruined Zimbabwe through theft and corruption. Zimbabwe doesn’t pay for anything there is no money honey- is the saying. The African saying is” a leopard doesn’t change it’s spots” . Nor has Gono . Sue Gono get a writ out for fraud against him. That will limit his buying sprees elsewhere cos he has no money honey.