Mugabe turns tables against potato firm

Mugabe turns tables against potato firm
Published: 25 September 2018 (322 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

There is Logic in Political Strategy

by Tinashe Eric Muzamhindo | 24 June 2019 | 52 Views

Smuggling: the new corruption frontier in Zimbabwe

by Victor Bhoroma | 24 June 2019 | 49 Views

WATCH: 'Nothing has changed,' says Mthuli Ncube

by Staff Reporter | 24 June 2019 | 65 Views

10 Implications of de-dollarization and introduction of the Zim dollar

by Tapiwa Mashakada and Miriam Mushayi | 24 June 2019 | 82 Views

WATCH: ZANU PF Youths declare war

by Mandla Ndlovu | 24 June 2019 | 64 Views

ZANU PF suspends Obert Mpofu

by Mandla Ndlovu | 24 June 2019 | 132 Views

Joice Mujuru speaks out

by Mandla Ndlovu | 24 June 2019 | 123 Views

Zimbabwe bans use of US Dollar and Rand

by Mandla Ndlovu | 24 June 2019 | 185 Views

Jonathan Moyo says Mthuli Ncube must be stripped off degree

by Mandla Ndlovu | 24 June 2019 | 165 Views

Evidence that Shonas arrived in Zimbabwe 300 years ago (1700's)

by Ndzimu-unami Emmanuel Moyo, PMP | 24 June 2019 | 131 Views

ED full speech at AU - UN summit in Vic Falls

by President ED Mnangagwa | 24 June 2019 | 96 Views

ZESA plunges Lobengula into darkness for 2 months

by Mandla Ndlovu | 24 June 2019 | 102 Views

Massive demonstrations against Mthuli Ncube planned

by Mandla Ndlovu | 24 June 2019 | 152 Views

Mthuli Ncube bans use of US Dollar and Rand

by Mandla Ndlovu | 24 June 2019 | 249 Views

Jonathan Moyo says Mthuli Ncube must be stripped of degree

by Mandla Ndlovu | 24 June 2019 | 194 Views

Chiwenga and Mnangagwa's fight reaches boiling point

by Itai Mushekwe | 24 June 2019 | 292 Views

Police arrest Harare drug syndicate

by Mandla Ndlovu | 24 June 2019 | 146 Views

Chamisa condemns Ethiopia coup attempts

by Staff Reporter | 24 June 2019 | 146 Views

Mthuli Ncube engages journalists

by Staff Reporter | 24 June 2019 | 135 Views

Zim Dollar back?

by Staff Reporter | 24 June 2019 | 177 Views

Mthuli Ncube speaks of Zim dollar imminence

by Staff Reporter | 24 June 2019 | 183 Views

The civil servants problem

by Clemen Moyo | 24 June 2019 | 129 Views

Mnangagwa poisoning; new details emerge

by Mandla Ndlovu | 24 June 2019 | 218 Views

Mthuli Ncube criminalises use of US Dollar and Rand

by Mandla Ndlovu | 24 June 2019 | 154 Views

Jilted man jailed for setting mother-in-law's house ablaze

by Simbarashe Sithole | 24 June 2019 | 106 Views

Another soldier in the suspected armed robbery nabbed

by Simbarashe Sithole | 24 June 2019 | 152 Views

Mnangagwa to open EU-UN Wildlife Economy Summit

by Staff Reporter | 24 June 2019 | 113 Views

Zimbabwe has enough forex, says Chamisa

by Staff Reporter | 24 June 2019 | 156 Views

US tells Mnangagwa to stop interfering with trade unions

by Staff Reporter | 24 June 2019 | 137 Views

Civil servants get pay rise

by Staff Reporter | 24 June 2019 | 190 Views

Nurses call off strike

by Staff Reporter | 24 June 2019 | 108 Views

Arrest thieving Zifa officials

by Staff Reporter | 24 June 2019 | 121 Views

Byo residents up in arms with Zesa

by Staff Reporter | 24 June 2019 | 90 Views

WATCH: Malawi Army steps in

by Mandla Ndlovu | 24 June 2019 | 168 Views

MDC blasts war veterans

by Simbarashe Sithole | 24 June 2019 | 90 Views

Zanu PF youths warned against abusing Mnangagwa's name

by Staff Reporter | 24 June 2019 | 81 Views

Zimbabwe has so far paid $53m to former white farmers

by Staff reporter | 24 June 2019 | 68 Views