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Mashudu Netsianda Senior Reporter
THE Bulawayo City Council (BCC) has approached the High Court seeking a default judgment against the Cold Storage Company (CSC) over a debt of more than $335,000 in unpaid rates and water charges.

The BCC yesterday filed a chamber application for a default judgment at the Bulawayo High Court over the $335,146,64 accrued over a six-year period.

The application by the council through its lawyers R Ndlovu and Company follows the CSC’s failure to enter an appearance to defend the summons within the stipulated period. According to High Court rules, a defendant has 10 days to file opposing papers with the Registrar of the High Court after receiving summons.

In its summons, the BCC said despite demand, the beef processing firm had neglected, failed or refused to pay the money.

In the papers before the court, the BCC is the plaintiff while the CSC was cited as the defendant.

Spekiwa Mugiya, the council’s legal officer, in his affidavit, said on August 5, 2015, they wrote a letter to the CSC demanding full payment of the water bills, but the beef company failed to settle the debt.

“During the period extending from October 2009 to July 2015, the defendant failed or neglected to pay monthly water charges in full and accumulated arrears amounting to $335,146,64,” said Mugiya.

The BCC is also demanding interest calculated at the rate of six percent per annum and cost of suit at attorney-client scale.

Last year, the CSC challenged the sale in execution of its properties which were attached by the Sheriff of the High Court over outstanding employees’ wages.

The employees of the struggling beef processing company through their workers’ committee chairman, Jacob Mafusire, made an application at the High Court to register an arbitral award of more than $450,000 in outstanding wages.

The company’s fortunes have been blighted by allegations of mismanagement, corruption and heightened competition from private abattoirs.

Over the years, the CSC has been involved in negotiations with potential suitors willing to operationalise its depots in Masvingo, Kadoma, Marondera and Chinhoyi, but analysts say its $22 million debt overhang has been a major put-off for investors.

In all, it is estimated that more than $80 million is needed to bring the company back to its feet.