Mugabe turns tables against potato firm

Mugabe turns tables against potato firm
Published: 25 September 2018 (230 Views)
Former president Robert Mugabe company's Gushungo Holdings (Private) Limited has turned the tables against a potato producing company that supplied it with seed on credit in 2015, accusing the firm of breaching a verbal contract entered between the two parties.

This comes after Seed Potato Co-op (Private) Limited approached the High Court demanding over $174 000 for potato seed supplied to Mugabe's company.

However, in its papers filed last Friday, Mugabe's company claimed that the potato seed that was delivered was substandard and defective and resulted in the company incurring losses instead of profits.

"Defendant (Seed Potato Co-op Private Limited) breached the agreement in that it delivered seeds which were substandard quality, defective and not as per the agreed standard. The defendant further breached the contract by delivering locally obtained seeds instead of imported seeds as per its undertaking. The defendant further charged the plaintiff the price for imported potato seed and yet it had delivered locally obtained seeds," Gushungo Holdings said.

The company owned by the former first family, also said that the seed firm failed to produce any documentation for certification and approval of the seeds, in breach of the contract.

"As a result of the breach, the seeds supplied did not produce the expected harvest and consequently plaintiff suffered huge losses. When the agreement was concluded, the parties were aware of the following: that plaintiff was farming potatoes as a business, that is to make profits out of the farming, should the seeds be not of quality, the plaintiff would suffer a loss from the potato farming venture," Mugabe's firm said.

The company said it planted the potato seeds with all the necessary requirements.

"It had the red soils which is the best for potato farming and all the necessary inputs and machinery. Plaintiff employed qualified and experienced workmen and expertise for the potato farming.

"After harvesting the crop, the plaintiff realised that it had suffered losses instead of getting profits. The potato seed failed to yield even the expected minimum yield. The defendant supplied the plaintiff with a total of 6 262 bags of potato seed. The seeds were planted on a 52,5 hectares piece of land," the court heard.

According to Gushungo Holdings, a minimum of 70 tonnes per hectare was expected, translating to 3 675 tonnes for the 52,5 hectares, with an expected outcome value of $428 385.

"However, plaintiff harvested 314, 55 tonnes and realised only $114 344, 71. The total cost for farming the potato seed including the costs for buying potato seed amounted to the sum of $398 489, 91. As a result, plaintiff suffered losses in the total sum of $284 145, 20.

"Plaintiff's loss is calculated by the difference between the revenue acquired from the potatoes harvested and the production costs incurred," the court was told.
The potato seed company is still to respond to the application, which is still pending before the High Court.

In the main application, the seed company told the court that it had delivered seeds at several farms, listed as Mwenewazvo, Gushungo Dairy, Highfield, Vusumuzi, Kaseplan and Iron Mask.

"In July 2015, the parties entered into a verbal agreement in terms of which plaintiff (in the main application) (Seed Potato Co-op (Private) Limited) was to supply to defendant (Gushungo Holdings (Private) Limited), stock of potato seed on credit at a unit cost of $30 per pocket.

"Between 21 July 2015 and 24 September 2015, plaintiff duly supplied via 11 deliveries to defendant's various farms, a total of 12 761 pockets of potato seed worth a total value of $382 830…," the court heard.

The seed company claims Gushungo Holdings owes $174 193, an amount which excludes interest.

"Despite several demands, defendant has neglected, failed and/or refused to pay plaintiff the sum of its indebtedness," the seed company said.

- dailynews

Tags: Mugabe, Seed, Potato,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

US to open $292m Harare embassy in January

by Satff reporter | 17 December 2018 | 6 Views

'Zimbabwe reeling from socio-economic, challenges'

by Staff reporter | 17 December 2018 | 10 Views

Ncube slams door on US$ wage demands by doctors

by newzimbabwe | 17 December 2018 | 16 Views

Senior doctors join strike as crisis escalates

by ZimLive | 17 December 2018 | 12 Views

Mnangagwa promotes army officers

by Staff reporter | 17 December 2018 | 28 Views

Chidhakwa magistrate recusal bid fails

by Staff reporter | 17 December 2018 | 25 Views

One killed, three injured as bus is attacked before Beitbridge

by Staff reporter | 17 December 2018 | 45 Views

Intercape driver arrested trying to skip border to Zimbabwe

by STaff reporter | 17 December 2018 | 25 Views

12 law firms put under curatorship, 2 lawyers de-registered

by Ndou Paul | 17 December 2018 | 34 Views

Mphoko's son freed on bail

by Staff reporter | 17 December 2018 | 20 Views

Mnangagwa, Chamisa could learn from Mandela's humility

by Editorial - newsday | 17 December 2018 | 29 Views

ARTUZ teachers not charged, proceed with march

by Staff reporter | 17 December 2018 | 24 Views

BCC ignores burst sewer in my yard

by Tshabalala Resident | 17 December 2018 | 30 Views

Mnangagwa promotes August 1 massacre commander

by ZimLive | 17 December 2018 | 33 Views

BREAKING: Mnangagwa promotes 1 August killings commander

by Collen Ncube | 17 December 2018 | 21 Views

Mnangagwa fingered in ZBC saga

by Mandla Ndlovu | 17 December 2018 | 23 Views

ZIMRA goes after Harare City Council

by Collen Ncube | 17 December 2018 | 37 Views

Mnangagwa confronted

by Collen Ncube | 17 December 2018 | 21 Views

Mthuli Ncube calls doctors' demands 'nonsensical'

by Collen Ncube | 17 December 2018 | 38 Views

Zanu-PF OKs Mnangagwa as its 2023 candidate

by AP | 15 December 2018 | 133 Views

ZANU PF to ammend constitution

by Mandla Ndlovu | 15 December 2018 | 238 Views

China tells Zimbabwe 'Don't blame us, sort your own house'

by Staff reporter | 15 December 2018 | 363 Views

MDC Alliance losing Cllr jailed

by Staff reporter | 15 December 2018 | 178 Views

Mnangagwa donates 1 000 goats to schools

by Staff reporter | 15 December 2018 | 177 Views

PHOTOS: Bomb found at ZBC studios

by Mandla Ndlovu | 15 December 2018 | 163 Views

PHOTOS: MDC gala dinner held in Harare

by Mandla Ndlovu | 15 December 2018 | 160 Views

Kalawa Homecoming in disappointing line-up

by Mandla Ndlovu | 15 December 2018 | 129 Views

Mnangagwa's Important Speech

by Tom Nkala | 15 December 2018 | 148 Views

Mutsvangwa, Mangwana in messy fight with Energy Mutodi?

by Staff reporter | 15 December 2018 | 268 Views

Harare City Council owes $ 792 million

by Mandla Ndlovu | 15 December 2018 | 155 Views

Police crush teachers' protest demo

by Mandla Ndlovu | 15 December 2018 | 205 Views

Mnangagwa re-introduces Green Bombers

by Mandla Ndlovu | 15 December 2018 | 232 Views

Mnangagwa exposes Muchinguri-Kashiri lie

by newzimbabwe | 15 December 2018 | 252 Views

Zimbabwe doctors using condoms as medical gloves?

by ZimLive | 15 December 2018 | 183 Views

Mutsvangwa; Mangwana in messy fight with Energy Mutodi?

by Staff reporter | 15 December 2018 | 198 Views

Panic as Air Zimbabwe leaves passenger bags in South Africa

by Mandla Ndlovu | 15 December 2018 | 216 Views

Chamisa's MDC can go hang, says VP Chiwenga

by Staf reporter | 15 December 2018 | 207 Views