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Senior Court Reporter
A BULAWAYO mechanical engineering company, Warman Zimbabwe (Pvt) Ltd, has filed a lawsuit against Mbada Diamonds for failing to settle a debt of more than $800,000 accrued over five years. The debt emanates from mining equipment and accessories, which Mbada Diamonds bought from the engineering firm on credit between January 2010 and June 2015.

Warman Zimbabwe, through its lawyers Dube-Tachiona and Tsvangirai, accuses Mbada Diamonds of breaching the terms of their agreement by failing to pay the money within the stipulated period. According to the pact, for every delivery made, Mbada Diamonds was to make payment after 30 days.

According to the summons filed at the Bulawayo High Court, Warman Zimbabwe is the plaintiff while Mbada Diamonds is the defendant.

“On or around January 2010, plaintiff and defendant entered into an agreement wherein Warman Zimbabwe was to supply Mbada Diamonds with mining equipment and accessories. During the period extending from January 2010 to June 2015, at the special instance and request of Mbada Diamonds, Warman Zimbabwe supplied and delivered the equipment in pursuant of the agreement,” said Warman Zimbabwe’s lawyers. The lawyers said Mbada Diamonds, in breach of the agreement, has refused, neglected or failed to pay $811,577,11 despite demand.

In its lawsuit, Warman Zimbabwe is seeking an order that compels Mbada Diamonds to pay the debt with an interest of five percent per annum calculated from the March 13, 2015 to the date of full and final payment and the cost of suit at attorney-client scale. Mbada Diamonds has not yet filed opposing papers. Mbada Diamonds has fallen on hard times with a number of other cases pitting the mining firm with its suppliers yet to be determined by the High Court.

Last year in November the High Court in Harare ordered the mining company to pay up debts amounting to $700,000 after the company failed to defend claims by Tandamanzi Drilling and Hennem Investments for $230,000 and $469,365. This prompted Justice Joseph Mafusire to rule in favour of the creditors. Tandamanzi Drilling was engaged by Mbada to undertake core drilling services at Marange diamond fields.

In terms of the agreement, Mbada was supposed to foot all the costs incurred by Tandamanzi in the execution of the task and payment for actual service.

Mbada would pay for the incurred costs upon production of invoices by Tandamanzi. Tandamanzi carried out the services and produced invoices for extra costs incurred. The bill, according to the invoices, totalled $570,742 but Mbada Diamonds only paid $340,000, leaving a balance of $230,742. Mbada Diamonds did not pay the balance on demand. Mbada acknowledged the debt and promised to settle it through monthly instalments, but failed. The Chronicle could not establish whether Mbada has now settled the claim or not.

In 2012, two widows who lost their husband when he was hit by a dumper in Chiadzwa in 2012 also filed a lawsuit claiming $700,000 in compensation. Egna Nyanzou and Mwanyara Njanji blame Mbada Diamonds for the death of their husband.

The widows want the company to compensate following the death of their husband on December 18, 2012.

Mbada Diamonds, one of the largest diamond mining companies in Zimbabwe, is also embroiled in a long running dispute with former employees who have besieged the main offices demanding unpaid salaries and exit packages.